Glossary

The rate of return you receive on your investments, stated as a yearly percentage rate. Also called the rate of return.
The market in which lenders and investors buy and sell existing mortgages or mortgage-backed securities, which in turn provides greater availability of funds to lenders for additional mortgage lending.
Loan for which you give the lender a lien on property such as an auto, or other personal property or real estate that will serve as collateral for the loan. If you default, the lender can sell the collateral to satisfy the debt.
The property that will be pledged as collateral for a loan. If the borrower defaults, the lender can sell the collateral to satisfy the debt.
An agreement that creates or provides the lender a security interest in your property. Commonly titled "Deed of Trust" or "Mortgage."
The transfer of a lien interest in property by a borrower to a lender as collateral for repayment of a debt.
The Set Closing Date step is the process of determining the date you will sign your new loan documents.
The completion of a property purchase transaction and, if the buyer finances the purchase, the completion of signing loan documents and disbursing loan proceeds. Also called a closing.
Fees paid at or before the closing of your loan. They are the expenses incurred in obtaining the loan and transferring the ownership of property from the seller to the buyer. Also called closing costs.
When the lender agrees to allow a property to be sold for less than the remaining balance due on the loan, typically to prevent foreclosure.
A detached individual housing unit. The property shares no common ground with neighboring properties and shares no wall or roof but can be part of a planned unit development (PUD).
A housing development that is created by dividing a tract of land into individual lots for sale or lease.
Any mortgage or other lien that has a priority that is lower than that of the first mortgage. The subordinate loan has a claim to payment in a foreclosure only after the first mortgage is paid.
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, right of way, encroachments and other physical features.
Contribution to the construction or rehabilitation of a property in the form of labor or services performed personally by the owner.
A type of mortgage financing between the termination of one loan and the start of another loan. For example, a mortgage secured by the borrower's present home (which is usually up for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. See also bridge loan.
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