A mortgage loan in which the borrower receives a loan amount equivalent to the total value of the property to be purchased. In this situation, the borrower…

A monthly weighted average of the interest rates paid on checking and savings accounts offered by financial institutions operating in the states of Arizona…

A loan, usually a mortgage, with an initial loan amount equal to 125% of the initial property value. In other words, a 125% loan has a loan-to-value ratio…

A type of mortgage with a set of two initial temporary-start interest rates that increase in stair-step fashion until a permanent interest rate is reached…

A type of adjustable-rate mortgage that has a two-year fixed interest rate period after which the interest rate on the mortgage begins to float based…

A type of mortgage with a series of three initial temporary-start interest rates that increase in a stair-step fashion until a permanent interest rate…

A type of adjustable-rate mortgage (ARM) frequently offered to subprime borrowers. These mortgages are designed as short-term financing vehicles that give…

An adjustable-rate mortgage (ARM) with an initial five-year fixed-interest rate. After this initial five-year period, the interest rate begins to adjust…

An adjustable-rate mortgage with an initial five year fixed interest rate after which the interest rate begins to adjust every six months according to…

Home loans that are more than 60 days past due on their monthly mortgage payments. 60-plus delinquency rates are typically expressed as a percentage of…

A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an 80% loan-to-value ratio, the…

The highest credit grade available as assigned to a borrower by a lender. Lenders use a credit grading system to qualify borrowers. The higher the borrower…

A clause in a property insurance contract that, under certain circumstances, permits the property owner to abandon lost or damaged property and still…

The value of a project or asset if it were immediately liquidated. Also referred to as the liquidation value.The abandonment value is generally a cash…

A term associated with making additional unscheduled payments on a loan at predetermined, or random intervals. Making additional unscheduled payments…

Coverage under a homeowner's, condominium owner's or renter's insurance policy that covers the additional costs of living that are incurred by the policy…

1. An option's strike price after adjustments have been made for stock splits to its underlying security.2. A term used to describe the strike prices…

A financial performance measure primarily used in the analysis of real-estate income trusts (REITs). The AFFO of a REIT, though subject to varying methods…

The frequency at which interest rate changes or resets on an adjustable-rate mortgage occur. Different adjustable-rate mortgages have different adjustment…

The amount of time between interest rate changes to an adjustable rate mortgage (ARM). Most ARMs have two adjustment intervals. The first interval is…

A required submission to the Securities and Exchange Commission (SEC) by a professional investment advisor that specifies the investment style, assets…

A party involved within the secondary mortgage market that purchases mortgages from financial institutions and then securitizes them into mortgage-backed…

A clause in a mortgage contract that requires full payment of the balance of a mortgage at the lender's discretion if the property is sold or the title…

In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings…

A classification of mortgages where the risk profile falls between prime and subprime. The borrowers behind these mortgages will typically have clean…

A documentation process designed to expedite loan approval where the lender accepts from the borrower documents such as W-2s, paycheck stubs and bank…

A broad category of mortgages that vary from fixed-rate, fully amortizing mortgages in terms of amortization schedules, interest rate structure and payment…

An act from 1982 that over-rode many state laws that prevented banks from using mortgages other than conventional fixed-rate mortgages. This act allowed…

A complete schedule of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise each payment so that the…

A loan with scheduled periodic payments of both principal and interest. This is opposed to loans with interest-only payment features, balloon payment…

An annual report sent to a mortgagor by the mortgagee's servicer detailing the amount of interest and points paid during the preceding year and the remaining…

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process…

A practitioner who has the knowledge and expertise necessary to estimate the value of an asset, or the likelihood of an event occurring, and the cost…

The benchmark interest rate to which an adjustable rate mortgage is tied. An adjustable rate mortgage's interest rate consists of an index value plus…

A fixed percentage rate that is added to an index value to determine the fully indexed interest rate of an adjustable rate mortgage (ARM). The margin…

Dollar value assigned to property for purposes of assessing taxes. You may be familiar with assessed valuation because it is used to determine the value…

A local government official who determines the value of a property for taxation purposes. Assessors are trained to determine the fair market value of…

A type of financing arrangement in which the outstanding mortgage and its terms can be transfered from the current owner to a buyer. By assuming the previous…

A provision in a mortgage contract that allows the seller of a home to pass responsibility to the buyer of the home for the existing mortgage. In other…

A legal term referring to the action of seizing property in anticipation of a favorable ruling for a plaintiff who claims to be owed money by the defendant…

The act of granting authority or jurisdiction to a party even though no legal rights exist. For example, This occurs when you lease an apartment and…

A computer-generated loan underwriting decision. Using completed loan application information, an automated underwriting systems retrieves relevant data…

A classification of loans associated with the borrowers that have tainted or limited credit histories. Generally, B/C refers to any loan that is classified…

A ratio that indicates what portion of a person's monthly income goes toward paying debts. Total monthly debt includes expenses such as mortgage payments…

A dishonest marketing tactic in which a marketer advertises a very attractive price/rate/term that is really a teaser rate meant to attract customers…

A type of loan which does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay…

An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount is not amortized over the life…

A letter confirming that a line of credit has been secured from a financial institution or bank. The bank confirms that a person is eligible for a specified…

When the sale of a mortgage in the secondary mortgage market requires that the seller, usually a mortgage originator, make a "best efforts" attempt to…

A type of action or cost expenditure that contributes towards improving an asset's performance and/or increasing its value. Betterments do not include…