To help you locate a term, enter the first character or two of a term and press the 'Refresh' button. Or, just click on the handy alphabetical index to jump to that section of the glossary.
| abstract of title |
| The history of the chain of title (all of the documents that transfer title) to a parcel of real property, starting with the earliest existing document and ending with the most recent. |
| Abstract of title
fees (htm) |
| Enter the amount for producing the title abstract.
|
| Accelerated Bi-Weekly
(htm) |
| Select if payments will be made every fourteen days. (This isn't the same
as semi-monthly payments, which are collected twice a month. )
|
| Accelerated Weekly (htm) |
| Select
if payments will be made every seven days. (This isn't the same as weekly
payments, which are collected four times a month. )
|
| acceleration clause |
| A provision in a mortgage that gives the lender the right to demand payment of the balance of the loan immediately, if regular payments are not made as agreed or for breach of other terms of the mortgage. |
| accident and health calculation method |
| Gross coverage Net coverage |
| accident and health insurance |
| Insures against borrower's inability to make loan payments due to njury or illness. In order for the premium be excluded from the Finance Charge, it must be OPTIONAL (not required), or the consumer must be allowed to purchase the coverage elsewhere. |
| accident and health rate |
| n/a |
| accident and health term |
| n/a |
| Accident Rate (htm) |
| Enter
the rate for accident and health insurance.
|
| Accident Term (htm) |
| Enter
the term for accident and health insurance. In most cases, this will be the
same as the term for the loan.
|
| Activate Developer (htm) |
| Click
to activate the developer options, which are available from the final
calculation screen. You will need to contact Math Corporation for the password.
|
| Activate
Developer/Developer Activated (htm) |
| Click Activate Developer to display the
password screen. Click Developer Activated to deactivate the developer mode.
|
| actuarial method |
| The method of allocating payments between the amount financed and the finance charge, where a payment is applied first to the accumulated finance charge. Any remainder is subtracted from, or any deficiency is added to the unpaid principal balance of the amount financed. |
| additional principal payment |
| Unscheduled principal payments made to reduce the remaining balance of a loan. |
| add-on interest |
| When interest is added to the amount borrowed. For example, a $5,000. 00 loan at a 10% nominal rate for one year would have the $500. 00 interest added to the loan amount. The base loan amount would be $5,500. 00, but the borrower would actually receive $5,000. 00 at closing. |
| adjustable-rate mortgage (ARM) |
| also called AMLs(Adjustable Mortgage Loans) or VRMs (Variable rate mortgage). A Mortgage where the interest rate may change over the life of the loan in accordance with movements in an index rate. The terms, adjustment schedule and index that the loan is based upon vary by loan program. To protect the borrower, "caps" often limit the amount of payment adjustment. ARMs are also referred to as |
| Adjusted Payment
Number (htm) |
| Enter the payment number when adjustments should occur for
reimbursement information.
|
| adjustment date |
| The date on which the interest rate changes for an adjustable-rate mortgage (ARM). |
| adjustment interval |
| For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years. |
| adjustment period |
| With most ARMs, the interest rate and monthly payment change every year, every three years, or every five years. However, some ARMs have more frequent interest and payment changes. The period between one rate change and the next is called the adjustment period. So, a loan with an adjustment period of one year is called a one-year ARM, and the interest rate can change once every year. |
| Advance (Note) date (htm) |
| Enter
the closing date for the loan, when the customer will receive the requested
funds.
|
| Advance (note) date
(QAPR) (htm) |
| The date on which the funds were advanced (disbursed).
|
| affordability analysis |
| A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay. |
| All (htm) |
| Select to
print all pages.
|
| Allow Different Basis
(htm) |
| Select if you want to use a different accrual method in the odd first
period than you do for the rest of the loan.
|
| amortization |
| Literally to kill (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment. |
| amortization schedule or table |
| An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made. It may also show amount due for mortgage insurance or other items |
| Amortization Schedule
Screen (htm) |
| This screen displays the amortization report for the loan
application. Information includes base terms, dates, Truth In Lending
information, the selected calculation options, and the amortization schedule.
You can modify the amortization schedule results by clicking the Customize
button.
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.
|
| amortization term |
| The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of periods (months, quarters ,years etc. ) to maturity. For example, a 30-year monthly payment mortgage would have an amortization term of 360 months. |
| Amortization Term (htm) |
| The
total number of payments on which the payment is based.
|
| amortize |
| To repay a mortgage with regular payments that cover both principal and interest. |
| Amount (htm) |
| Enter the
dollar amount of the payment due for this payment period.
|
| Amount Advanced (htm) |
| Select
to charge interest on only the amounts actually drawn.
|
| Amount Financed |
| This is the amount of money being loaned to the borrower. The total includes: the principal loan amount, amounts financed by the creditor which are not part of the finance charge, less any prepaid finance charges. |
| Amount of Payments (htm) |
| The
amount of each payment in this payment stream.
|
| annual mortgagor statement |
| A report sent to the mortgagor each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year. |
| annual percentage rate (APR) |
| The total cost of credit on a yearly basis expressed as a percentage. It takes into account the total cost of the loan including finance charges (origination fee, points, prepaid interest, etc. This calculation is disclosed as part of the disclosure statement which is required by the Federal Truth-in-Lending Act. The statement is required on all consumer loans and is required to be disclosed within three working days of application for residential owner-occupied mortgage loans pursuant to the Real Estate Settlement Procedures Act (RESPA). |
| annuity |
| An amount paid at regular intervals from principal and interest provided by a fund set up for the purpose. (the present value). |
| annuity due |
| Where the first payment in a stream of payments is made at the beginning of the period and at the beginning of each subsequent period. Leases are often structured this way. |
| Another Button (htm) |
| Click
to add another escrow item under 1/6 aggregate escrow, or another rate to a random
rate loan or draw note, or another buydown under buydown terms.
|
| Another buydown period |
| Enters the input area for another buydown period. |
| Another Stream Button
(htm) |
| Click to add another payment stream.
|
| application |
| A form used to apply for a loan and to record pertinent information about a prospective borrower and the proposed security. |
| application fee |
| The fee charged by the lender to the borrower for accepting a loan application. If you charge this fee to all applicants, whether or not their application is successful, you don't have to include it in the finance charge. However, if you only charge it to some applicants, you must include it. Application fees can be entered as an exclusion for real estate loans. |
| Application Fee |
| The fee charged by the lender to the borrower for accepting a loan application. |
| Application Fee (1) (htm) |
| Enter
the application fee for accepting this loan application. If you charge this fee
to all applicants, whether or not their application is successful, you don't
have to enter it here. However, if you only charge it to some applicants, you
must enter it here. Application fees can be entered as an exclusion for real
estate loans.
|
| application Fee (1) Finance charge worksheet (some versions) |
| Enter the application fee for |
| appraisal |
| A written analysis of the estimated value of a property prepared by a qualified appraiser as of a particular date. |
| appraisal fees |
| Enter the amount charged to determine the value of the collateral. This figure will be included in the finance charge, except in the case of real estate loans where it may be excluded by specific exemption under RegZ. |
| Appraisal fees (htm) |
| Enter
the amount charged to determine the value of the collateral. This figure can be
included in the finance charge, except in the case of real estate loans where
specifically excluded.
|
