of Title - A condensed history or summary of all transactions
affecting a particular tract of land.
Adjustable Rate Mortgages - Mortgages with an interest rate
that may change up or down depending on an indicator. These
are usually based something like the current Treasury bill
- A sworn statement in writing.
Title insurance - This means that most title insurance
charges are included in one price.
- To reduce a debt by means of regular periodic payments which
include amounts applicable to both principal and interest.
- Annual percentage rate. On some mortgages the APR is higher
than your actual mortgage rate.
- A mortgage that allows a new owner to take over payments.
The original borrower remains liable on the mortgage note.
- A written document by which the ownership of land is transfered
from one person to another.
of Trust - Instrument used to secure a loan on real estate.
Like a mortgage, generally used in the South. The major difference
is in how forclosures are handled. Forclosures are much faster
with a Deed of Trust than with a Mortgage.
or Earnest Money - Advance payment of part of the purchase
price to bind a contract for property.
Clause - A provision in a mortgage or deed of trust which
requires the loan to be paid in full if a property is sold
- The interest or value which an owner has in real estate
over and above the debts against it.
- (1) A procedure whereby a disinterested third party handles
legal documents and funds on behalf of a seller and buyer.
(2) Money that is kept by the mortgage company to ensure that
taxes can be paid in full when due. This is paid up front
on settlement sheet lines 1001 - 1006 and is added to the
mortgage payment monthly over the prinicial and interest figure.
(Fannie-Mae) - The Federal National Mortgage Association,
a federally sponsored private corporation which provides a
secondary market for housing mortgages.
Rate Mortgages - Mortgages with a fixed interest rate.
You payment for principal and interest will not change for
the life of the loan. Your monthly payment may change if taxes
or insurance rates change.
- The Federal Housing Administration. An agency of the federal
government which insures private loans for financing of new
and existing housing and for home repairs under government
(Freddie Mac) - Federal Home Loan Mortgage Corporation.
An affiliate of the Federal Home Loan Bank, which creates
a secondary market in conventional residential loan and FHA
and VA loans by purchasing mortgages from members of the Federal
Reserve System and the Federal Home Loan Bank System.
- Legal process by which a mortgagor of real property is deprived
of his interest in that property due to failure to comply
with terms and conditions of the mortgage.
- A person who acquires an interest in land by deed, grant
or other written instrument.
- A person who, by a written instrument, transfers to another
interest in land.
insurance - The homeowner's insurance policy.
- One who might inherit or succeed to an interest in lands
under the rules of law applicable where an individual dies
without leaving a will.
personam - Directed at specific persons rather than against
property or generally for all people.
rem - Pertaining to property or people in general.
only payments - A mortgage where only the interest is
paid on a monthly basis. This means that the buyer gets no
equity. This is only used on some purchase money mortgages
where the buyer is responsible for paying the seller the entire
amount of the second mortgage at some time in the future.
- A written document.
origination fees - Money required by the lender to be
paid to start the work of approving a mortgage.
- A decree of a court.
- A hold, a claim or charge allowed a creditor upon the lands
of a debtor.
Note - An instrument used to encumber land as security
for a debt. This document gives the mortgage company "in
rem" jurisdiction over the mortgagor.
- A designation for the mortgage lender on lands.
- A designation for the mortgage borrower on lands.
- Mortgage insurance protection
- A written promise to pay a certain amount of money, at a
certain time, or in a certain number of installments. It usually
provides for payment of interest and its payment is at times
secured by a mortgage. The mortgage note document gives the
mortgage company "in rem" jurisdiction over the
mortgagor. The promisory note document gives the mortgage
company "in personam" jurisdiction over the mortgagor.
- Paid outside of closing. Sometimes the lender requests this
money before settlement. If you pay any charges before settlement
they should be written on the settlement sheet. They are written
on the proper line outside of your column. They should also
be marked P.O.C.
- a percentage point. Equal to one percent of the loan amount.
of Attorney - An instrument authorizing another to act
on one's behalf as his agent or attorney.
- Private mortgage insurance.
- Purchase money mortgage. A mortgage given by the seller
simultaneously with the purchase of real estate to secure
the unpaid balance of the purchase price.
- To allocate between seller and buyer their proportionate
share of an obligation paid or due.
Note - A promise to pay. The promisory note document gives
the mortgage company "in personam" jurisdiction
over the mortgagor.
Property - Land and that which is affixed to it.
Rate - A reduced rate of title insurance premium applicable
in cases where the owner of the land has been previously insured
in an owner's policy by the insurer within a certain time.
Mortgage - A mortgage, the lien of which is subordinate
to that of another mortgage.
- The process of measuring land to determine its size, location
and physical description and the resulting drawing or map.
Service Fee - A fee paid to the mortgage company to verify
that they actually pay the real estate taxes.
- The evidence or right a person has to the ownership and
possession of land.
Insurance - Insurance against loss or damage resulting
in defects or failure of title to a particular parcel of real
Insurance Binder or Commitment - A report issued by a
title insurance company binding or committing the title insurance
company to issue the form of policy designated in the commitment
or binder upon compliance with and satisfaction of requirements
set forth in the commitment or binder.
Search - An examination of public records and court decisions
to disclose the current facts regarding ownership of real
taxes - Money paid to the county and or state when property
- The Veterans Administration. They insure mortgages.
- A written document properly witnessed, providing for the
distribution of property owned by the deceased.