An estimate given to the borrower within three days of formal application
that lists the costs they may incur at closing. Hazard Insurance Insurance
coverage that provides compensation to the insured in case of property
loss or damage.
A line of credit, which is, based on the lendable equity the borrower
has in the home.
Includes the coverage for hazard insurance plus added coverage such as
personal liability, theft away from the home, and other such coverage.
An insurance program through which participating builders provide homebuyers
with a warranty on the workmanship and materials of a home, and warrants
against major structural defects.
The amount of money received during a period of time. Index The rate you
pay directly related to a particular interest-rate index.
The amount paid for the use of money usually expressed as an annual percentage.
Also, a right, shares, or title in a property.
Required on all sellers' payoffs due to interest being paid one month
in arrears. It is always best to figure on 30 days of interest. To figure
out one month's interest, multiply the unpaid principal balance and interest
rate, and then divide by 12. The new lender will also charge the buyer
a "per diem" (per day) interest adjustment from the date of loan disbursement
to 30 days before the first payment comes due.
A qualifying ratio used in underwriting a residential mortgage loan, which
computes the percentage of monthly income, required to meet the monthly
housing expense.
Any person or institution that invests in mortgages or mortgage-backed
securities.
A loan that exceeds the statutory size limit eligible for purchase or
security by federal agencies other than FHA and VA.