This refers to the borrower's debt ratio and is calculated using a borrower's total of monthly payments due on credit obligations divided by the borrower's gross monthly income. It's expressed as a percentage. See also DEBT RATIO.
Escrow set up to take care of the simultaneous purchase of one property and the sale of another property by the same party.
Financial report or statement in tabular form showing personal or corporate assets, liabilities, and equities as of a specified date.
Mortgage that includes level monthly payments that will fully amortize it over a stated term, but provides for a balloon payment due at the end of an earlier specified term.
Remaining balance of a mortgage that must be paid in a lump sum either at the end of the mortgage term or at the end of a specified earlier period. The amount may represent slightly more than a monthly payment or may be substantial. It occurs because the fixed installment did not fully amortize the mortgage, either accidentally or intentionally.
So, it is a large payment due at the end of a loan contract. Equal to the remaining principal balance plus any interest and charges due.
Federal court proceedings to relieve the debts of an individual or business unable to pay its creditors. See also CHAPTER 7 BK and CHAPTER 13 BK.
1/100th of 1%. For example 5 1/2 basis points equal 5.5/100=0.055% or 0.00055.
Suburban section from which a large number of residents commute to work in a n adjoining or nearby metropolitan area.
One in whose favor a trust operates, or in whose behalf the income from a trust estate or trust deed is drawn. Lender on the security of a Note. Also, one who receives funds from a life insurance policy.
Written instructions by a beneficiary under a deed of trust or mortgage stating and demanding the amount necessary for payoff of a lien in full.
Publication issued by the A.M. Best Company, which establishes ratings for hazard insurance carriers by evaluating their assets and liabilities.
Written document that transfers title to personal property.
Written evidence of temporary hazard or title coverage that runs for a limited time and must be replaced by a permanent policy.
Lien on more than one parcel or unit of land, frequently incurred by subdividers or developers who have purchased a single tract of land for the purpose of dividing it into smaller parcels for sale or development. Also known as blanket trust deed.
Also identified as architectural plans, these are provided by a licensed architect, a custom builder or can be provided by a factory-built home supplier. They provide a complete overview of how the project will be constructed, including all necessary architectural and structural issues.
Mortgagor who receives funds in the form of a loan with the obligation of repaying the loan in full with interest, if applicable.
The monthly savings a customer will experience by consolidating/paying off debt with a debt consolidation loan. Monthly savings equals current monthly payments less new monthly payments.
Violation of any legal obligation.
In residential or commercial property, the figure at which occupancy income is equal to all required expenses and debt service.
Loan spanning the gap between the termination of one (generally short-term) loan and the start of another (generally permanent long-term) loan. Also known as gap financing.
Form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold.
Fire and extended coverage insurance for a building under construction. Coverage increases automatically as the building progresses and terminates at completion.
Regulations that control design, construction, and materials used in construction.
Written permission by a local government for the construction of a new building or for making improvements.
Cabinets, ranges, and ovens, or similar features that are part of the structure.
Customers who own their own business. Another word for self-employed.
A license that authorizes a business to operate and is typically required and issued by the city in which the business is located.
Compensation to a business owner or operator for income lost when the business is closed due to a fire or other insured hazard.
Account in which funds are held so that they can be applied as part of the monthly mortgage payment as each payment comes due during the period that an interest rate buydown plan is in effect.