Glossary

The likely selling price of a home between a willing buyer and a willing seller on the open market. In a mortgage or a home equity loan, the fair market value is usually determined by an appraisal.
An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.
The finance charge is the cost of consumer credit expressed as a naira amount. It includes the amount of interest you will pay during the term of the loan, origination points and certain other items.
Objectives you set for yourself related to money management, saving, paying off debt and financial stability.
A mortgage that is in a first and superior position to all other mortgages on the secured property.
The First Payment Due is the date that the first payment is due on this loan.
The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest.
A mortgage loan with a predetermined interest rate that does not change for the entire term of the loan. This means that the interest rate will never change for as long as you have the loan, and your monthly payments of principal and interest will remain the same.
Personal property that becomes real property when attached in a permanent manner to real estate (such as a lighting fixture or swimming pool).
A specified period of time (usually 3 to 6 months) wherein borrowers can make either lower payments or no payments at all on a loan. This is sometimes offered by a lender as an option to prevent foreclosure.
A legal procedure in which property securing a defaulted loan is sold by the lender in order to repay a borrower's loan. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. The amount paid by a buyer at the foreclosure may not be enough to fully repay the loan and the borrower may continue to owe the lender the difference.
The loss of money, property, rights or privileges due to a breach of legal obligation.
A ratio that indicates what portion of an individual's income is used to make mortgage payments. It is calculated as an individual's monthly housing expenses divided by his or her monthly gross income and is expressed as a percentage.
A mortgage loan where the borrower makes payments that are applied first to interest and then to principal, and that gradually reduce the principal balance to zero.
The Fund step is the date on which the proceeds from a loan are available to or disbursed for the benefit of the borrowers.
The date on which the lender authorizes the disbursement of loan proceeds for the benefit of the borrower.
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