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The 2015 Mortgage Glossary for Home Buyers

100% Financing

203k Loan

A

Abstract of Title 

Accrued Interest

Adjustable Rate Mortgage (ARM)

Adjustment Interval

Amortization 

Amortization Schedule

Amount Financed 

Application

Appraisal 

Appraisal Fee

Appraiser

Appreciation

APR (Annual Percentage Rate)

Arrears

Artesian Well

As-Is Condition

Assessment 

Assumption

Assumable Mortgage

Authorized User

Automated Underwriting

Balance

Balloon Mortgage

Basis Points

Bi-Monthly Mortgage

Bi-Weekly Mortgage

Board of REALTORS®

Bottom Land

Breach of Contract

Building Code

Building Permit 

But Loan

Buy Down

Buy Up 

Buyer's Market 

C

Capital Gain

Cash-Out Refinance

Cash to Close

Certificate of Insurance

Certificate of Title

Certified Check

Clear Title

Closed-End Mortgage

Closing

Closing Costs

Closing Date

Co-Borrower

COFI (Cost of Funds Index)

Collateral

Comparables

Conventional Mortgage

Construction Financing

Conversion Option

COSI (Cost of Savings Index)

Co-Signer

Counter Offer

Credit History

Credit Report

Credit Score

Cumulative Interest

D

Day of Consummation (Consummation Day) 

Deed

Deed in Lieu of Foreclosure

Default

Delinquency

Demand Clause

Disclosure

Discount Points

Discretionary ARM

Documentation Requirements

Down Payment

Due-on-Sale Clause

E

Earnest Money

Equity

Escrow Account

F 

FHA

FHA 203k or FHA 203(k)

FHA Loans or FHA Mortgages

Fair Credit Reporting Act (FCRA)

Fair Housing Act

Fannie Mae

Fees

FICO Score

Financing Points

First Mortgage

First Time Home Buyer

Fixed Rate Mortgage (FRM)

Flexible Payment ARM

Float

Foreclosure

Freddie Mac 

FSBO

Fully Amortizing Payment

Fully Indexed Interest Rate

G 

Gift Letter

Gift of Equity

Ginnie Mae (GNMA)

Good Faith Estimate (GFE)

Grace Period

H

Hazard Insurance

Home Affordability Refinance Program (HARP or HARP 2.0)

Home Equity Line of Credit (HELOC)

Home Equity Loan

Home Improvement Loans

Homeowners Insurance 

HomeStyle Renovation

Housing Bubble

Housing Code

Housing Expense

Housing Expense Ratio

HUD1 Form

Hybrid ARM

I

Inspection Certificate

Indexed ARM

Initial Interest Rate

Initial Rate Period

Insurance

Interest Due

Interest Only Mortgage

Interest Rate

Interest Rate Ceiling

Interest Rate Floor

Interest Rate Increase Cap

Interest Rate Decrease Cap

Investor

J

Joint and Several Liability

Jumbo Mortgage

Junk Fees

K

Kalamazoo Mortgage Lender

L

Late Fees

Late Payment

Latent Defect

Lease Purchase

Lender

Level Payment Mortgage Originator

Lien

Litigation

Loan Agreement

Loan Amount

Loan Commitment

Loan Officer

Loan to Value Ratio (LTV)

Lock

Lock Commitment Letter

Lock Failure

Lock Period

M

Mandatory Disclosure

Manufactured Home (Manufactured Housing)

Margin

Market Value

Maturity

Maximum Loan Amount

Maximum Loan to Value Ratio 

Maximum Lock

Minimum Down Payment

Modular Home (Modular Housing)

Mortgage (Mortgage Loan)

Mortgage Approval

Mortgage Banker

Mortgage Broker

Mortgage Company

Mortgage Formulas

Mortgage Insurance

Mortgage Insurance Premium

Mortgage Lender

Mortgage Loan Program

Mortgage Modification

Mortgage Payment

Mortgage Pre-Approval

Mortgage Price

Mortgage Spam

N

Negative Amortization

Negative Homeowners Equity (Negative Equity)

Negative Points

No Change Scenario

No Cost Mortgage

Non-Permanent Resident Alien

No Asset Loan

No Income Loan

No Income No Asset Loan (NINA)

Nominal Interest Rate 

Note (Mortgage Note)

O

Open End Mortgage

Option ARM

Option Fee

Origination Fee

P

Payment Adjustment Interval

Payment Increase Cap

Payment Decrease Cap

Payment Period

Payment Shock

Per Diem Interest

Personal Property

PITI

Points

Portfolio Lender

Power of Attorney 

PowerSaver Grant

Preapproval

Predatory Lending

Prepayment

Prequalification

Primary Residence

Principal

Principal Limit

Private Mortgage Insurance (PMI)

Processing

Q

Qualification

Qualification Rate

Qualification Ratios

Qualification Requirements

R

Rate Caps

Rate Protection

Recast Payment

Refinance (Refi)

Release of Liability

Required Cash

RESPA

Retail Lender

Reverse Mortgage

Right of Rescission

S

Scenario Analysis

Scheduled Mortgage Payment

Seasoned Loan

Second Mortgage

Secure Option ARM

Secondary Market

Self Employed Borrower

Seller Contribution

Seller Financing

Servicing

Servicing Agent

Servicing Transfer

Settlement

Settlement Costs

Short Sale

Silent Second Mortgage

Simple Interest Mortgage

Solvent

Stated Assets

Stated Income

Stated Income Stated Assets Mortgage (SISA)

Strategic Default

Streamlined Refinancing

Submortgage

Subordinate Financing

Subordination Policy

Sub-Prime Market

Sub-Prime Mortgage

Survey

T

Tangible Net Benefit

Tax Lien

Tax Service Fee

Teaser Rate

Temporary Buydown

Term

Title

Title Insurance

Total Interest Payments

Trigger Leads

Truth in Lending Act

U

Underage

Underwriting

Underwriting Standards

V

VA

VA Mortgage Loan (VA Loans)

W

Waive Escrows

Warehouse Lender

Wholesale Lender

Work Out Assumption

Wrap-Around Mortgage

X

Y

Yield Curve 

Z

Zero Down Loan (Zero Down Mortgage)

Zero Ordinances

Zombie First Time Home Buyers

Mortgage Glossary Disclaimer

*This mortgage glossary is meant to be a guide. These definitions were not written by a lawyer. They were written in plain English so home buyers could understand them. They're not meant to be legally binding nor the final word on the definition. Some of the terms defined may be no longer in use in the housing market, and some of them are not offered at AmeriFirst Home Mortgage. We just wanted to be sure you had enough information (and more) to become a powerful, educated home buyer.

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