The HSH Mortgage Glossary Q-S
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The Mortgage Glossary Index:
A measure of credit worthiness. Ratios of debt to income which are used to determine whether a borrower can qualify for a mortgage. Less important than formerly, qualification ratios are being replaced by FICO scores.
A commitment issued by a lender to a borrower guaranteeing a specified interest rate for a specified period of time at a specific cost. Extended lock in periods usually incur an additional fee.
Real Estate Settlement Procedures Act (RESPA)
A law and corresponding consumer protection regulations which, among other requirements, specifies that lenders must state an Annual Percentage Rate for each loan.
The process of paying off one loan with the proceeds from a new loan using the same property as security, usually, for the purpose of obtaining a lower interest rate, converting accumulated equity into cash, or both.
The amount of principal that has not yet been repaid. See Principal Balance
See Home Equity Conversion Mortgage
A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
Right Of Way
An easement providing access to an adjoining property. See Easement
Satisfaction (Of A Mortgage)
An instrument provided by the lender as evidence that the loan has been paid off and the lien is satisfied. Usually, it is up to the borrower to record the document.to remove the lien from the public record.
An infrastructure where the vast majority of mortgages are sold. Crudely, individual mortgages grouped together into large pools called Mortgage Backed Securities. Shares in MBSs are sold to investors, providing funds for more mortgages.
See Loan Servicing
A statement which shows the seller's net proceeds and the buyer's net payment at closing. A standard form itemizing all of the monies paid at closing, including real estate commissions, loan fees, points, and initial escrow amounts. See HUD-1 Settlement Statement
A drawing or map showing the boundaries of a property, easements, rights of way, encroachments, and other limits. The process of creating or verifying a survey map, usually required by a lender prior to making a loan.
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