Mortgage 101 / Mortgage Glossary
View our in-depth Mortgage Glossary below.
View our in-depth Mortgage Glossary below.
A mortgage in which the interest rate and monthly payments remain constant over the life of the loan.
A fee paid to an independent third party to determine whether or not property improvements are located in a flood zone.
Insurance subsidized by the federal government required for property improvements located in federally designated flood areas (A & V zones).
The act of refraining from taking legal action despite the fact that a mortgage is in default.
The legal procedure undertaken by a mortgagee for the purpose of having property sold and the proceeds applied to the payment of a defaulted debt.
HUD regulates two housing-related government-sponsored enterprises, Fannie Mae and Freddie Mac, which were chartered by Congress to create a secondary market for residential mortgage loans. They are considered “government-sponsored” because Congress authorized their creation and established their public purposes. ?
The disbursement of funds to complete a transaction that occurs when a lender provides money to close a loan, or an investor provides funds to the lender to purchase a mortgage loan.
The process of identifying the coordinates of a location given its address.
A computer system for the input, storage, processing, applications development, retrieval, and maintenance of information about the points, lines, and areas that represent the streets and roads, rivers, railroads, geographic entities, and other features on the surface of the earth — information that previously was available only on paper maps.
Securities guaranteed by GNMA that are issued by mortgage bankers, commercial bankers, savings and loan associations, savings banks, and other institutions. The GNMA security holder is protected by the “full faith and credit of the U.S.” GNMA securities are backed by FHA, VA, or FMHA mortgages.
A government agency (Division of HUD) that administers the mortgage-backed securities program which channels new funds into residential financing through the sale of privately issued securities carrying a GNMA guarantee. Commonly known as “Ginnie Mae.”
HUD regulates two housing-related government-sponsored enterprises, Fannie Mae and Freddie Mac, which were chartered by Congress to create a secondary market for residential mortgage loans. They are considered “government-sponsored” because Congress authorized their creation and established their public purposes. ?
A residential mortgage loan which has initial low monthly payments that increase gradually and then level off for the duration of the loan term. A GPM with an adjustable interest rate may result in initial negative amortization.
A generic term applicable to transfers of real property.
The party who receives a deed; the buyer.
The party who signs and gives a deed; the seller.
A contract whereby an insurer, for a premium, undertakes to compensate the insured for a loss on a specific property due to fire, windstorm, and other natural hazards.
A principle of value that focuses on the most profitable, legal use to which a property can be put.
A revolving line of credit against the equity in one’s home allowing the homeowner to borrow as needed, up to a predetermined maximum amount.
Provides formula grants to states and localities that communities use — often in partnership with local nonprofit groups — to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership, or to provide direct rental assistance to low-income people.
Activities or programs designed to prevent the incidence of homelessness, including, but not limited to: (1) short-term subsidies to defray rent and utility arrearages for families that have received eviction or utility termination notices; (2) security deposits or first month’s rent to permit a homeless family to move into its own apartment; (3) mediation programs for landlord-tenant disputes; (4) legal services programs that enable representation of indigent tenants in eviction proceedings; (5) payments to prevent foreclosure on a home; and (6) other innovative programs and activities designed to prevent the incidence of homelessness.
A federal law requiring automatic cancellation of Private Mortgage Insurance (PMI) when the loan-to-value ratio is reduced to 78%.
Allows communities to reclaim vacant and blighted properties, increase homeownership, and promote economic revitalization by creating entire neighborhoods of new, single-family homes, called HOZs.
The Florida Constitution allows a tax exemption from assessed property value. The standard homestead tax exemption is $25,000 for all qualifying homestead and is deducted from the assessed value when calculating taxable value.
Established in 1965 to implement and administer government and urban development programs. The range of programs include, community planning, equal opportunity in housing and FHA mortgage loans.
