Welcome to our Glossary of Terms.   Here you will find descriptions of terms used throughout our web site and terms common in the industry.

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mortgage
A legal document that pledges a property to the lender as security for payment of a debt. A conveyance of an interest in real property given as security for the payment of an obligation.

mortgage banker
A company that originates mortgages exclusively for resale in the secondary mortgage market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. .

Mortgage Insurance (htm)
Select
the mortgage insurance option for all new loans.


mortgage insurance (MI)
A policy which insures the lender against loss caused by a mortgagor's default. . Mortgageinsurance can be issued by a private company in which case it is referred to a PMI, or by agovernment agency such as the Federal Housing Administration (FHA) or VeteransAdministration (VA). The insurance usually covers the amount over a percentage of themortgage loan. MIP/PMI Impound An amount for MIP/PMI required under certain circumstances and collected by the lenderand held in the impound account to insure that adequate funds are available to pay the nextyears premium. Usually equivalent to 2 months of the annual premium. mortgage insurance premium (MIP)The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI)company.

mortgage life and disability insurance
Some policies also cover the borrower in the event of disability. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. In the case of disability insurance, the insurance will make the mortgage paymentfor a specified amount of time during the disability. Be careful to read the terms of coverage, however, because often the coverage does not start immediately upon the disability, but after a specified period, sometimes forty-five days

mortgage life insurance
A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while thepolicy is in force, the proceeds of the insurance policy pay the loan in full.

mortgagee
The lender in a mortgage agreement. mortgagee clause Language in the homeowners and title insurance policies which identifies the mortgagee and it's successors and/or assigns, and assigns the proceeds of any claim to the mortgagee as its interest appears.

mortgagor
The borrower of money. One who gives as security a mortgage or deed of trust on real property.

mortgagor
The borrower in a mortgage transaction.

Multi (M1) (htm)
The
number of this payment stream.


Multi Payment amount (M3) (htm)
The payment for this payment stream.


multi stream loan
n/a

Multi-1st Interest Payment Date (M9) (htm)
The date the first interest payment is due.


Multi-1st Principal Date (M6) (htm)
The date on which the first principal payment is due.


Multi-Balloon Amount (M11) (htm)
The amount which will be due on the balloon payment date.


Multi-Balloon Term (M10) (htm)
The number of payments to be made before the balloon payment is due.


Multi-Clear (M15) (htm)
Clear
the entries you have made for this payment stream.


multi-dwelling units
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.

multifamily mortgage
A residential mortgage on a dwelling that is designed to house more than four families, suchas a high-rise apartment complex.

Multi-Interest rate (M2) (htm)
The interest rate for this payment stream.


Multi-Interest Term (M8) (htm)
The total number of interest payments due in this payment stream.


Multi-Interest Periods per Year (M7) (htm)
The number of interest payments per year.


Multi-Maturity Date (M14) (htm)
The actual maturity date of this stream of payments.


Multi-New (M12) (htm)
Base
this payment stream on the outstanding balance at the end of the previous
payment stream.


multiple disbursement (draw note) loan
n/a

multiple payment streams
n/a

Multiple Disbursements (htm)
Select to calculate a loan with multiple draws to the
customer. You can calculate the repayment method using plus interest or level
payment loans.


Multi-Principal Term (M5) (htm)
The total number of payments for this stream.


Multi-Principal Periods per year (M4) (htm)
The number of principal payments per year for this
payment stream.


Multi-Streams/Remove Multi Button (htm)
Click the Multi-Streams button to display the multiple stream
fields for this loan. When the multiple stream fields are displayed, this
button displays Remove Multi to clear any multiple stream information.


Name (htm)
Enter your
name.


negative amortization
An increase in a mortgage balance due to the fact that the payment amount is not adequate to cover the entire principal and interest due. The amount of the shortfall is added to the outstanding balance creating "negative" amortization. Adjustable rate mortgages allow the interest rate to fluctuate and can cause negative amortization.

Negative Amortization (htm)
Enter the maximum amount of the total loan value that the borrower can owe,
if interest rates fluctuate to a point where the borrower's minimum payment
doesn't cover the interest due.


net effective income
Gross income less federal income tax.

Net Proceeds
This is the number used for the calculation of the Total Annual Loan Cost (TALC) table required by Regulation Z. If this variable is equal to 0, the home_value is used. If the number is greater than one it is treated as a dollar amount. If it is 1 or less, it is used as a percentage and multiplied by the home_value to determine the number. Please note that this variable is only used as a short cut when you are trying to calculate a TALC table without reference to a specific example. If you are calculating a specific example, you should send 0 for this value.

net worth
The value of all of a person's assets, minus all liabilities.

New (htm)
New.


New FHA
The only change that has occurred is an internal change that allows the component to correctly calculate FHA MIP when the new cutoff rules go into effect (all case files with a date of June 3, 2013 and later). These rules were described in HUD Mortgagee Letter 2013-04. For further information, please see HUD’s web site.

To correctly utilize the new cutoff rules, please pass a value of 3 in the variable fha and be sure that the variable ltv is populated with the correct loan-to-value ratio for the transaction being run. The component will calculate the correct term of insurance.

If you’re still running the current FHA, nothing has changed. Run it just as you have in previous versions.

New Loan (icon) (htm)
Click
to create a new study, or loan application.


New Savings (htm)
Click
to create a new study file, or savings record.


Next Month Button (htm)
Jump
ahead one month.


Next Page (htm)
Click
to display the next page of the results.


Next Year Button (htm)
Jump
ahead one year.


Non-Borrower Spouse 1 Birthdate
The birthdate of the first non-borrowing spouse.

Non-Borrower Spouse 2 Birthdate
The birthdate of the second non-borrowing spouse.

Non-display columns - Hidden (htm)
Select to hide columns in the Excel spreadsheet that aren't
selected. In Excel, you can choose to display these columns.


Non-display columns - Removed (htm)
Select to delete columns in the Excel spreadsheet that aren't
selected.


non-liquid asset
An asset that cannot easily be converted into cash.

note
A legal document that obligates a borrower to repay a loan. Included terms are: interestrate, amount, maturity and repayment place and repayment method.

note rate
The interest rate on a loan.

notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Number of Compounding Periods
Enter the number of interest periods in the account. For example, if you have monthly compounding and the account is 18 months long, this equals 18.

Number of Compounding Periods (htm)
Enter the number of interest periods in the account. For example,
if you have monthly compounding and the account is 18 months long, this equals
18.


Number of Decimals for Accruals
Enter the number of decimal points that accrual calculations should use when rounding. The minimum value is 5. This value should reflect your current practices.

Number of Decimals for Accruals (htm)
Enter the number of decimal points that accrual calculations
should use when rounding. The minimum value is 5. This value should reflect
your current practices.


Number of months of cushion (htm)
Enter the number of advance months for which you want to collect
payments for the escrow item.


odd first period

Odd interest adj. (htm)
Displays
the methods for paying off odd interest adjustments. Amortize spreads the interest over the total number of payments. style='mso-bidi-font-style:normal'>Prepaid adds the interest payment to the
closing costs. Amortize - adj final pmt
adds the interest payment to the final loan payment. Irregular 1st Pmt adds the interest payment to the first payment.


odd interest adjustment
The amount by which the interest in the odd first period is more or less than a regularperiod must be accounted for in the payment schedule. The methods offered by the ZMath®Engine are: Amortize - Spread the interest ratably over all the payments. Prepaid - The borrower pays the lender (long first period) or the lender pays theborrower (short first payment) in one payment at closing. Amortize-adjust first - The entire amount is charged or credited at the time of thefirst regular payment. Amortize-adjust final - The entire amount is charged or credited at the time of thefinal payment.

OK Button (htm)
Accepts
the selected or edited entries.


Open Savings (htm)
Click
to open a previously saved study file, or savings record.


Open Study (icon) (htm)
Click
to open a previously saved study, or loan application.


options and variations
The options and variations allowed with each loan type will be displayed when you click onthe choices icon. The combo boxes at the top or the screen represent calculation Options. The radio buttons in the lower part allow choices appropriate to that type. Some choices aren't available because they don't make sense. For example you can't choose skipped payments with a single payment loan, since there aren't any payments to skip.

Options and Variations Screen (htm)
Enter the appropriate options and variations for the loan being
calculated. Different loan types display different variations.

You can also enter the interest type, basis, and odd
interest adjustment. The values in these fields default to your User Defaults.


Options and Variations Screen dd (htm)
Enter the appropriate options and variations for the type of
savings scenario being calculated.

Select ‘Deposits’ or ‘Withdrawals’ to indicate regular
deposits or withdrawals amounts and options.

You can also enter the basis and the number of accrual
decimals. The values in these fields default to your User Defaults.


Options and Variations (htm)
Displays the options and variations available to the selected
loan type, along with the entry screen. If you don't check this box, you may
still see the options and variations by clicking the Options and Variations
icon on the entry screen toolbar.


Options and Variations dd icon (htm)
Click to display the options and variations screen. Use
this screen to select options such as basis and number of decimals for accruals
and to select deposits and withdrawals options.


options, basis
Options, Rounding

Original (htm)
Original.


Original LTV
The original LTV is the loan-to-value ratio of the loan at origination. eZMath will use this figure to determine the term of the FHA insurance.

original principal balance
The total amount of principal owed on a mortgage before any payments are made.

origination Fee
The fee(s) charged by a lender to cover certain processing expenses involved in theevaluation, preparation and submission of a mortgage loan. . Usually a percentage of the amount loaned.

Origination Fee (htm)
Enter
the amount you charge to the borrower for applying for a new loan (usually 1%,
or one point, of the total loan amount).


Other - amount (htm)
Enter
the amount for any other fees that you charge the borrower.


Other - explain (htm)
Enter
an explanation of the Other fee that you are charging the borrower.


Other Cash Out
The amount of any other cash out required by the borrower.

Other Closing Costs
The total of any other closing costs besides lender fees.

Other Paid Prepaid PMI
Purpose—Allows the user to have the prepaid (escrowed and prepaid) MI renewals paid by a party other than the borrower, thereby removing it from the prepaid finance charges.

Values: 1 = paid by other party, 0 = paid by borrower

Other Paid Upfront PMI
Purpose — Allows the user to have the upfront PMI or the funding fee be paid by a party other than the borrower, thereby removing it from the prepaid finance charges.

Output Type
Choose the format of the preview page for the deposit engine data.

owner financing
An arrangement where which the property seller provides all or part of the financing.

Owner of loan (htm)
?


owner's title policy
An insurance premium charged by the title company to insure the buyer that the title is free from defects and the seller has merchantable title.

partial payment
A payment that is not sufficient to cover the scheduled monthly payment of principal and interest on a loan.

Payable To
Enter the name of the institution to which this payment will be made.

Payable to (htm)
Enter
the recipient of the escrow item payment. Type the name in the box the first
time you use it and save it if this is a recurring payee.


Payment Adjustment Periods
The number of periods before subsequent payment changes.

Payment Amount
The amount of the periodic payment in a HECM where the line of credit is to be calculated. If this number is entered as 1.0 or less, it is calculated based on a percentage of the principal limit. If there is no periodic payment, this variable should equal 0.

Payment Amount (htm)
Displays
the amount the borrower will repay, based on the loan type and variables.
ZMath® determines this figure when you click the Calculate button and displays
it on the documentation screen.


Payment Amount (QS) (htm)
Leave
this field empty to solve for the Payment Amount, when you have entered
something for the Term and Loan Amount.


Payment Cap
The amount the payment can increase (or decrease) at each payment change date. Entered as a percentage or dollar amount.

Payment Cap $ (htm)
Enter
the maximum dollar amount to which the payment can increase for the life of the
loan.


Payment Cap % (htm)
Enter
the maximum percentage to which the payment can increase for the life of the
loan.


payment change date
The date when a new monthly payment amount takes effect on an adjustable-ratemortgage (ARM) or a graduated-payment adjustable-rate mortgage (GPARM). Generally,the payment change date occurs in the month immediately after the adjustment date.

Payment Date (B) (htm)
Select
to display a payment due date column in the schedule.


Payment Discount Rate
The initial discount rate for a Payment Option ARM.

Payment No. (A) (htm)
Select
to display the payment number in the Excel spreadsheet.


Payment Option ARM
Payment Option ARM Loan - Interest Only Phase

Payment Option ARM
Payment Option ARM Loan - No Interest Only Phase

Payment Periods per year for Draw Period (htm)
Enter the number of payments per year (interest only)
made during the draw period.


Payments due exact day (htm)
Select when payments are due on the same day of every period.



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