N
Name Search- A fee charged by title companies in some states to cover the cost of searching the public record for court orders against the current owner or proposed purchaser that could affect the title of the property. For our comparison purposes, the name search fee is considered to be a third party fee.
National Association of Purchasing Management (NAPM) Survey- This prices-paid index gives insight into inflation in the manufacturing sector. A reading above 50% generally indicates that the manufacturing sector is expanding, and below 50% signifies contraction. Frequency: monthly. Source: National Association of Purchasing Management.
National Association of Realtors®- An organization of Realtors®, devoted to encouraging professionalism in real estate activities
National tenant- A lessee with a presence and established reputation in most of the United States. These tenants are typically well-known and usually have better credit than local tenants
Negative Amortization- A gradual increase in mortgage debt that occurs when the periodic monthly payment is not sufficient to cover the monthly principal and interest due. The amount of the deficit is added to the remaining principal balance to create negative amortization.
Net Cash Flow- The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance.
Net Closing Costs- For our comparison purposes, the net closing costs are the total closing costs quoted by a lender, less any credit or rebate that is offered.
Net Worth- The total value of all of a person's or company's assets, minus all liabilities.
New Home Sales- Reports the number of new single-family homes sold, expressed on an annual basis. Can be combined with Existing Home Sales to determine the total volume of home sales, a strong predictor of future national mortgage origination volume. Frequency: monthly. Source: Commerce Department.
No Cash Out Refinance- A refinance loan is an amount that pays off the existing mortgage balance on the property and does not provide the borrower with any cash at closing.
Non-Conforming Loan- A mortgage that exceeds the maximum loan amount for the most common mortgage investors. The cost of obtaining a non-conforming mortgage is generally higher than the cost of obtaining a conforming mortgage. Also known as a jumbo loan.
Non-liquid Assets- Any assets that cannot easily be converted into cash
Notary Fee- A fee for a licensed notary public to certify your signature on the loan documents.
Note- The written agreement signed by the borrower at closing that contains the promise to repay the loan. The note also contains the terms of the loan, such as interest rate, payment, and term.
Note Rate- The interest rate stated on a mortgage note. Also called nominal rate or face interest rate
Notice of Default- Formal written notice to a borrower that a default on a loan has occurred and that legal action may be taken.
Number of Application Questions- To apply for an on-line mortgage, an applicant is asked to provide personal and financial data about themselves. In order to help you compare one site to another, we have estimated the number of questions that must be answered to complete an application at each site.
Back to Top
P
P&I - The monthly principal and interest payment required when repaying a mortgage in accordance with its terms.
Package Mortgage- A mortgage agreement in which the principal amount loaned is increased because personal property as well as real property serve as security.
Pad Site- A single freestanding retail site, often adjacent to a mall or larger shopping center.
Paper- Credit given, evidenced by a written obligation with property as collateral.
Partial Payment- A loan payment that is not great enough to cover the scheduled monthly payment on a mortgage.
Payment Change Date- The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM). The payment change date usually occurs in the month immediately after the adjustment date.
Periodic Payment Cap- On an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase during a single adjustment period.
Periodic Rate Cap- On an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase during a single adjustment period.
Personal Income- Economic indicator that measures the total income of all Americans from all sources, and is reported both before and after taxes. Also reports personal spending and personal savings. The level of spending can be used as an indicator of consumer optimism. Frequency: monthly. Source: Commerce Department.
Personal Property- Any and all property that is not real property.
PITI- (P)rincipal, (I)nterest, (T)axes, and (I)nsurance is a reference to the total monthly payment required to repay a mortgage in accordance with its term as well as monthly escrow payments for taxes and insurance.
Planned Unit Development (PUD)- A housing project that includes common property that is owned and maintained by a homeowners' association for the benefit and use of the individual unit owners.
Plat Drawing & Conservation Fee- A fee charged by title companies in some states for obtaining a map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements. This drawing is required to obtain title insurance. For our comparison purposes, the plat drawing and conservation fee is considered to be a third party fee. Some lenders may include this fee in the cost of the title insurance.
Plat Registration- A fee charged by title companies in some states to review the registration of a public record containing maps of land, showing the division of the land into streets, blocks, and lots and indicating the measurements of the individual parcels. For our comparison purposes, the plat registration fee is considered to be a third party fee. Some lenders may include this fee in the cost of the title insurance.
Points- Fees that are collected by the lender in exchange for a lower interest rate. Commonly called discount points, each point is equal to 1% of the loan amount. For our comparison purposes, a discount point is considered to be a lender fee. To determine if it is wise to pay discount points to obtain a lower rate, you must compare the up front cost of the points to the monthly savings that result from obtaining the lower rate.
Power of Attorney- A written legal instrument that authorizes another person to act on one's behalf. A power of attorney can grant either complete or limited authority.
Pre-foreclosure Sale- A process in which the lender allows a borrower to avoid foreclosure by selling the property for less than the amount that may be owed to the lender.
Pre-qualification- Procedure to determine how much money a potential homebuyer will be eligible to borrow prior to actually applying for a loan.
Prepaids- Expenses of property ownership or expenses incurred while obtaining a mortgage that must be paid in advance. Prepaids typically include real estate taxes and hazard insurance.
Prepayment- Any amount that is paid to reduce the principal balance, not interest, of a loan before the due date.
Prepayment Penalty- A monetary penalty charged by a lender if all or part of a loan is paid off before it is due.
Prime Rate- The interest rate that banks charge to their best customers for short-term loans. Changes in the prime rate can influence changes in other interest rates.
Principal- The actual balance, excluding interest, of a mortgage loan. Also refers to the amount of the monthly mortgage payment that will be applied to the actual balance.
Principal & Interest- The monthly payment required to repay a mortgage in accordance with its terms. Sometimes referred to as "P&I".
Principal Balance- The outstanding balance of principal on a loan. Principal does not include interest or fees.
Private Mortgage Insurance- Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The cost of the insurance is usually paid by the borrower and is most often required if the loan amount is more than 80% of the home's value. Sometimes referred to as mortgage insurance.
Processing/Administration Fee- A fee charged by a lender to cover the administrative costs of processing a loan request. For our comparison purposes, a processing or administration fee is considered to be a lender fee.
Producer Price Index (PPI)- Measures the average level of prices of a fixed basket of goods received in primary markets by producers. Monthly percent changes reflect the rate of change in such prices. Changes in the PPI are widely followed as an indicator of commodity inflation. Frequency: monthly. Source: Labor Department.
Productivity- An economic indicator that measures the output per hour of work for non-farm business production. Can be used in conjunction with the rate of change in GAP to determine whether economic growth is likely to be inflationary. A separate component measures unit labor costs, an important indicator of future inflation. Frequency: quarterly. Source: Labor Department.
Promissory Note- A written promise to pay a specified sum to specified person over a specified period of time.
Property Taxes- Taxes based on the assessed value of the home, paid by the homeowner for community services such as schools, public works, and other costs of local government. Sometimes paid as a part of the monthly mortgage payment.
Public Auction- A gathering at a pre-announced public location to sell property to satisfy a mortgage that is in default.
Public Record- A collection of legal documents that are filed with the local government registry so that the public will know what liens, encumbrances or judgements may affect any piece of real estate.
Purchase Agreement- A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Purchasing Managers Association of Chicago (PMAC) Survey- The PMAC Survey is a composite diffusion index of manufacturing conditions in the Chicago area. Readings above 50% indicate an expanding factory sector.
Back to Top
Q
Quadrangle- A square-shaped land area, 24 miles on each side. Frequently used in the government rectangular survey method of land description.
Qualifying Ratios- Calculations performed by lenders to determine your ability to repay a loan. The first qualifying ratio is calculated by dividing the monthly PITI by the gross monthly income. The second ratio is calculated by dividing the monthly PITI and all other monthly debts by the gross monthly income.
Qualifying Thrift Lender- A lender who specializes in home mortgage finance under the rules established by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
Quantity Survey- A method used by appraisers to estimate how much it would cost to reproduce an improvement.
Quitclaim Deed- A deed that transfers, without warranty, whatever interest or rights a grantor may have at the time the transfer is made. Often used to remove a possible cloud on the title.
Back to Top
R
RAM- Reverse annuity mortgage.
Ranch House- Once described a low, one-story house typical of the western United States. The term is now used to describe just about any one-story home.
Rate- The annual rate of interest for a loan. Also called the interest rate.
Rate Change Cap- The maximum amount that an interest rate can change, either at an adjustment period or over the entire life of the loan. Commonly associated with an adjustable rate mortgage (ARM).
Rate Improvement Mortgage- A fixed-rate mortgage (FRM) that includes a clause allowing the borrower the option to reduce the interest rate one time (without refinancing) during the first few years of the loan term.
Rate Lock- An agreement by a lender to guarantee the interest rate offered for a mortgage provided that the loan closes within the specified period of time.
Rate of Interest- Same as interest rate.
Real Estate Agent- A person licensed to negotiate the purchase and sale of real estate on behalf of buyers and sellers.
Real Estate Settlement Procedures Act (RESPA)- A consumer protection law that requires mortgage lenders and brokers to give borrowers advance notice of closing costs in the form of a Good Faith Estimate.
Real Property- Land and anything permanently affixed to the land, including structures, trees, minerals, and the interest, benefits and rights thereof.
Realtor®- A real estate broker or associate who is an active member of a local real estate board that is affiliated with the National Association of Realtors.
Reconveyance Fee- This fee is charged by title companies or attorneys in some states and covers the cost of removing your current lender's lien from your property title when you refinance. For our comparison purposes, a reconveyance fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Recordation Exam- A fee charged by the title company in some states to review documents, to assure they meet the state standards prior to being recorded. For our comparison purposes, a recordation exam is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Recorder- The public official who keeps records of transactions that affect real property in a specific geographic area (usually a county). Often known as a County Recorder or County Clerk.
Recording- The entering in a book of public record the details of a properly executed legal instrument that affects title to real property, thereby making it a part of the public record.
Recording Fees- A fee charged by the local government to record mortgage documents into the public record so that any interested party is aware that a lender has an interest in the property. For our comparison purposes, a recording fee is considered to be a tax or other unavoidable fee.
Refinance- The process of paying off any existing mortgages on a home with a new mortgage loan.
Rehabilitation Mortgage- A loan granted to cover the costs of repairing or improving an existing property. Sometimes also used to acquire property with the intent to improve it.
Release Fee- The fee charged to release a lien to free real estate from a mortgage.
Remaining Balance- The amount of principal owed on a loan that has not yet been fully repaid.
Remaining Term- The number of payments left to be made on a loan before it is fully amortized (paid in full).
Rent Loss Insurance- An insurance policy that protects a landlord against loss of rent or value due to natural casualties that renders the premises unsuitable for use, and therefore excuses the tenant from paying rent.
Repayment Plan- An agreement between a lender and a borrower, made to help the borrower repay delinquent installments.
Replacement Reserve- An amount set aside from net operating income for replacement of short-lived common property in cooperative housing projects such as condominiums.
Rescission- The cancellation of a contract by the operation of a law or by mutual consent. In some circumstances, borrowers have the right to cancel a transaction within three business days after closing.
RESPA- See Real Estate Settlement Procedures Act.
Retail Sales- Measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Frequency: monthly. Source: Commerce Department.
Retirement Plan 401(k) & 403(b)- Employer-sponsored investment plans that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by private corporations. 403(b) plans are provided by non-profit organizations.
Retirement Plan 401(k) & 403(b) Loans- Some administrators of 401(k) and 403(b) plans allow for loans against the funds you have accumulated in these plans.
Reverse Mortgage- See Home Equity Conversion Mortgage (HECM).
Revolving Credit- A credit agreement (typically a credit card) that allows a customer to borrow against a pre-approved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due.
RHS- See Rural Housing Service.
Right of First Refusal- A contract provision that requires a property owner to give another party the first opportunity to purchase or lease the property before it is offered to others.
Right of Ingress or Regress- The right to enter or leave specific property or premises.
Right of Survivorship- In joint tenancy, the right of surviving joint tenants to acquire the interest of a deceased joint tenant.
Rural Housing Service (RHS)- An agency within the United States Department of Agriculture that provides financing to farmers and other qualified borrowers buying property in rural areas, who are unable to obtain loans elsewhere.
Back to Top
S
Safe Harbor- A set of rules and regulations that will guarantee compliance with the law, if followed.
Safe Rate- An interest rate provided by low-risk investments such as high grade bonds or secured first mortgages.
Sale-leaseback- A technique in which a seller deeds property to a buyer, who simultaneously leases the property back to the seller.
Sales Contract- An agreement between a buyer and seller to purchase real estate. A sales contract, also known as an offer to purchase or a binder, secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money that was paid is forfeited unless the binder expressly provides that it is to be refunded.
Sales Disclosure- A state specific form that may need to be filed, disclosing everything about the sale of the home.
Search and Exam Fee - A fee charged by a title company or attorney in some states to perform a check of the title records that verifies the buyer is purchasing a house from the legal owner and there are no liens, overdue assessments, or other claims filed that would adversely affect the transfer of the title. For our comparison purposes, a search and exam fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Search and Survey- A fee charged by a title company in some states to perform a check of the public record to verify that the buyer is purchasing a home from the legal owner and there are no liens, overdue assessment, or other claims that would adversely affect the transfer of title. In addition, a search is performed to insure that there are no issues that a survey would show that could affect the property. For our comparison purposes, a search and survey fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Search Fee- A fee charged by a title company or attorney in some states to cover the cost of searching the public record to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue assessments, or other claims filed that would adversely affect the transfer of the title. For our comparison purposes, a search fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Second Mortgage- A loan that has a lien position subordinate to the first mortgage.
Secondary Mortgage Market- The buying and selling of existing mortgages, primarily residential first mortgages.
Secured Loan- A loan that is backed by collateral.
Security- The collateral offered to a lender in exchange for a loan. When a lender provides a mortgage, you provide your home as the security. This means that if payments are in default, the lender has the right to take title to the property.
Security Interest- The lender's right to take property that has been offered as security.
Seller take-Back- An arrangement in which the owner of a property provides financing.
Servicer- A company that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer may or may not be the original lender.
Settlement- A meeting of parties involved in a real estate transaction to finalize the process. In the case of a purchase, the settlement usually involves the seller, the buyer, the real estate broker and the lender. In the case of a refinance, the settlement involves the borrower and the lender. Sometimes referred to as the closing or the close of escrow.
Settlement or Closing Fee- A fee charged by a title company, closing agent or attorney to act as a representative and agent for the lender to perform the closing of a real estate transaction.
Settlement Statement- Also referred to as the HUD-1 or the closing statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.
Standard Payment Calculation- The process used to determine the monthly payment required to repay the remaining principal balance of a loan in fairly equal installments, over the remaining term of the loan at the current interest rate.
State Tax Stamps- A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another. For our comparison purposes, these fees are considered to be a tax or other unavoidable fee.
State/Local Tax Fees- A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another. For our comparison purposes, these fees are considered to be a tax or other unavoidable fee.
Step Mortgage- A type of adjustable-rate mortgage (ARM) that allows for the interest rate to increase according to a specified schedule. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan. Sometimes called a step-rate mortgage.
Subdivision- A housing development that is created by dividing a large parcel of land into many individual lots for sale.
Subordinate Financing- Any mortgage or other lien that has a lower priority than that of the first mortgage.
Survey- A fee associated with obtaining a precise measurement of a piece of property by a licensed surveyor. The survey is typically a written map of the property showing locations of buildings and boundaries. In some states a survey is required by a title company to issue a title insurance policy. For our comparison purposes, a survey fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Survey Affidavit- A fee charged by a title company to issue an insurance policy without requiring that a full survey be completed. For our comparison purposes, a survey affidavit fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Sweat Equity- Contribution to the construction of a property in the form of labor or services, instead of cash.
Swing Loan- Sometimes called a bridge loan, a swing loan is generally a loan that is secured by a borrower's current residence to obtain the funds needed to purchase a new home if the current residence will not be sold prior to the purchase of a new home.
Back to Top
T
Tacking- Adding on to a certain period of time.
Takeout Financing- A firm commitment to provide permanent long-term financing after a construction project is completed.
Taking- The acquisition of a piece of land, usually through condemnation.
Tangible Property- Real estate and other property of value which can be seen and touched.
Tax Base- The total value of property, income, or other taxable assets subject to taxation.
Tax Certificate- A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another. For our comparison purposes, these fees are considered to be a tax or other unavoidable fee.
Tax Service Fee- A fee charged to a borrower by a lender so that another company will assume responsibility for verifying the amount of real estate taxes due and that taxes have been paid over the life of the loan. For our comparison purposes, a tax service fee is considered to be a third party fee, however, some lenders may not charge for this service.
Taxes and Other Unavoidable Fees- Fees that we consider to be taxes and other unavoidable fees include State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose. If you see a tax or recording fee in the fee comparison table that is listed by some of the sites and not others, don't assume that you won't have to pay it. It probably means that the lender who doesn't list the fee hasn't done the research necessary to provide accurate closing cost information nationwide. Contact one of the sites directly for more information or talk to your real estate agent or attorney for guidance.
Tenancy by the Entirety- Type of joint tenancy that provides the right of survivorship and is available only to a husband and wife. Compare with tenancy in common.
Tenancy in Common- Type of joint tenancy without the right of survivorship. Compare with tenancy by the entirety and with joint tenancy.
Term- The loan term is the number of months that you will make monthly payments. If the loan term is the same as the payment calculation term, you will pay the loan in full during the loan term and no balance will be due. If the payment calculation term is greater than the loan term, a balance or "balloon payment" may be due at the end of the loan term.
Third Party Fees- Third party fees are usually fees that the lender will collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee and a title company or an attorney is paid the title insurance fees.
Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees.
Typically, you’ll see some minor variances in third party fees from lender to lender since a lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees such as the flood certification fee, the tax service fee or courier/mailing fees.
Title- A legal written instrument evidencing a person's lawful possession of a property.
Title Company- A company that specializes in examining titles to real estate and issuing title insurance.
Title Examination- A fee charged by a title company or attorney in some states to cover the cost of searching the public record to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue assessments, or other claims filed that would adversely affect the transfer of the title. For our comparison purposes, a title examination fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Title Insurance- An insurance policy that protects the lender (and sometimes the property owner as well) against loss due to disputes over the ownership of a property and defects in the title that were not found in the search of the public record. For our comparison purposes, the title insurance cost is considered to be a third party fee.
Title Opinion- A statement issued by an attorney as to the quality of title after examining an abstract of title. Also, referred to as an Attorney Opinion. For our comparison purposes, a title opinion fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Title Search- An examination of the public title records to determine the legal ownership of a property, and to ensure that there are no liens, encumbrances or other claims outstanding.
Total Closing Costs- This is the total of all the items that must be paid at closing related to your new mortgage. Since the exact charges for some of these items cannot be obtained until the time of closing, the figure may only be an estimate.
Total Debt Ratio- A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type. It is calculated by dividing the monthly housing expense (Principal, Interest, Taxes and Insurance plus all other monthly debt obligation) by the borrower's monthly gross income. Also referred to as a back end ratio or a bottom ratio.
Trade Equity- Equity that results from a buyer giving an existing property as trade for all, or part of, the down payment on the subject property.
Transfer of Ownership- Any legal method by which the ownership of property changes hands.
Transfer Tax- A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another. For our comparison purposes, these fees are considered to be a tax or other unavoidable fee. May also be referred to as an Intangible Tax.
Treasury Bills- An index used to establish interest rates for adjustable rate mortgages. It is based on the interest rate paid to private investors by the US Government to obtain funding for the national debt and other expenses. Sometimes called T-bills, they are available in denominations of 3-months, 6-months and 1-year. The 3-month and 6-month Treasury bills are auctioned every Monday, and the 1-year Treasury bills are auctioned on Tuesday. The resulting figures are released to the public the next day. This index can have either a weekly or a monthly value.
Treasury Bond- Negotiable, long-term U.S. Government debt obligation with a maturity of ten years or longer, issued in minimum denominations of $1,000.
Treasury Index- An index that is used to determine interest rate changes for some adjustable-rate mortgage (ARM) programs. It is often based on the U.S. Treasury's daily yield curve.
Treasury Note- An intermediate U.S. Government security with a maturity of 1 to 10 years. Denominations range from $1,000 to $1 million or more. The notes are sold by cash subscription, in exchange for outstanding or maturing government issues, or at auction.
Treasury Securities- An index used to establish interest rates for adjustable rate mortgages. It is based on the yields of actively traded 1-year, 3-year, or 5-year Treasury Securities adjusted to constant maturities. The Treasury Security indices are calculated by the U.S. Treasury and reported by the Federal Reserve Board. These indices have either a weekly or a monthly value. The weekly indices are released on Monday afternoon for the previous week. Monthly values for these indices are generally available on the first Monday of the following month.
Trustee- A fiduciary who holds property in trust for another to secure performance of an obligation or act
Truth in Lending Act- Also known as Regulation Z, this federal regulation requires a lender to provide borrowers with a disclosure estimating the costs of the loan including your total finance charge and the Annual Percentage Rate (APR) within three business days of the application for a loan. This act is designed to provide consumers with a standard method of comparing the financing costs from lender to lender.
Two-step Mortgage- A type of adjustable-rate mortgage (ARM) that has one interest rate for the first few years (typically 5 or 7), and a different rate for the remainder of the amortization term.
Back to Top
U
UCC- Uniform Commercial Code.
Underlying Mortgage- Generally refers to the first mortgage when there is a wraparound mortgage.
Underwriting- Detailed process of evaluating a borrower's loan application to determine the risk involved for the lender. Underwriting usually involves an in-depth analysis of the borrower's credit history, as well as an examination of the value and quality of the subject property.
Underwriting Fee- A fee charged by some lenders to cover the cost of the lender's analysis of the risk associated with a loan. For our comparison purposes, an underwriting fee is considered to be a lender fee.
Undivided Interest- An ownership right to use and occupy property that is shared among more than one owner. No single co-owner may have exclusive rights or possession to any part of the property.
Uniform Commercial Code (UCC)- Group of laws that are applicable to commercial transactions. Only a few of the laws have relevance to real estate transactions.
Unsecured Loan- A loan that is not backed by collateral.
Back to Top
V
VA Loan- A mortgage for veterans and service persons. The loan is guaranteed by the Department of Veterans Affairs (VA) and requires low or no down payment.
Vacancy Rate- The percentage of all units or space that is not leased, not rented or is unoccupied.
Vacant Land- Land that is not currently being used.
Vacation home - A home used by the owners only occasionally or seasonally, primarily for recreational purposes.
Valid- A document or contract that has legally binding force.
Vested- Having the right or privilege to use a portion of a fund, such as an individual retirement account (IRA).
Back to Top
W
Waiver- The voluntary abandonment or surrender of some claim, right, or privilege.
Warehousing- The packaging together of many mortgages for the purpose of selling them in the secondary market, usually by a mortgage banker who has originated the loans.
Warranty- A promise contained in a contract.
Water Table- Usually defined as the upper-most level at which underground water is normally encountered in a particular area.
Wire Transfer Fee- A fee charged by some lenders to cover the cost of wiring the mortgage funds to the appropriate parties, such as the title company or attorney, so that they are available for closing. For our comparison purposes, a wire transfer fee is considered to be a third party fee. However, some lenders may not charge for this service.
Wraparound Loan- A loan that includes the remaining balance on an underlying first loan. Instead of having separate first and second mortgages, a wraparound loan has both.
Back to Top
Y
Yield- A measurement of the rate of earnings from an investment, usually expressed as a percentage.
Yield To Maturity (YTM)- The internal rate of return on an investment. Typically takes into account all investment returns and their timing.
Back to Top
Z
Zone- A geographic area reserved and defined by local ordinance for specific limited use. Zones are almost always subject to certain restrictions or conditions.
Zoning - The local government's specifications for the use of property in certain areas.
Zoning map- A map of the local geographic area that defines current zoning designations and land use.
Zoning Ordinances - The acts of an authorized local government establishing building codes, and setting regulations for property usage.
Back to Top
