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Mortgage
Terminology
GRACE PERIOD
A period after due date for mortgage payments during which
payment may still be made without penalty.
HAZARD INSURANCE
Insurance coverage which provide compensation to the insured
in case of property loss or damage.
INCOME/EXPENSE RATIO
A qualifying ratio used in underwriting a residential mortgage
loan which computes the percentage of monthly income required
to meet the monthly housing expense.
INTEREST
Payment for the use of money, usually expressed as an annual
percentage rate.
JOINT TENANTS
Persons sharing ownership of a property in such a way that
on the death of one tenant, the property goes to the surviving
tenant ( or tenants ).
LAND CONTRACT
Agreement to purchase real estate on an installment basis
with title remaining in the original owners name until the
buyer completes all payments.
LIEN
A claim by one person on the property of another as security
for money owed, usually for materials or labor.
LOAN-TO-VALUE RATIO
The ratio of mortgage amount to appraised value or sales price
of real property. Used by lenders to determine maximum loan
amounts as set by law.
LOCK-IN PERIOD
The period of time during which a lender guarantees a borrower
a specific interest rate on a mortgage.
METES AND BOUNDS
A system of describing the boundaries of property by starting
at a known point and measuring in specified direction.
MORTGAGE
A lien or claim against property given by the buyer to a lender
as security for money borrowed. The buyer, in a mortgage agreement,
is the mortgagor; and lender is the mortgagee.
MORTGAGEE
A lender to whom property is conveyed as security for a loan.
MORTGAGOR
One who borrows money, giving as security a mortgage or deed
of trust on real property.
MORTGAGE, SECOND
A claim or lien on property to secure a loan beyond an original
mortgage. Since it offers the lender less security than a
first mortgage, it usually calls for a higher interest rate
and a shorter repayment period.
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the District of Columbia