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Mortgage
Terminology
TITLE
Evidence in the form of a deed or other certificate of a person's
legal right to ownership of property.
TITLE INSURANCE
A contract to make good a property owner's loss resulting
from defects in a title. Title insurance usually calls for
the insurer to defend the property owner's title at no cost
if the title is challenged in court.
TITLE SEARCH
Detailed review of title records, generally at the local courthouse,
to assure that the property is bought from the legal owner
and to determine if any liens, special assessments, other
claims or outstanding restrictive covenants are on record.
TRUTH-IN-LENDING ACT
Title 1 of the Consumer Credit Protection Act is known as
the Truth-in-Lending Act and became effective July 1, 1969.
It requires a lender to state the finance charges as an Annual
Percentage Rate, comparable to simple or bank interest, so
it can be more easily understood. Finance charges include
interest, loan fee, amount paid as discount points and service
of closing charges. Other important information that must
be disclosed under the law include the amount of each periodic
payment, the date payments are due and the conditions under
which late charges or other penalties will be imposed. The
law also provides that credit transactions involving a share
in real property may be rescinded in writing within three
days.
VA
Veterans Administration, which operates a loan guarantee program
(GI LOANS). This permits honorable discharged veterans (and
their widows) to obtain low down payment loans.
VRM
VRMs (Variable Rate Mortgages). Also referred to as ARMs (Adjustable
Rate Mortages) or AMLs (Adjustable Mortgage Loans).
WARRANTY
The sellers limited-time guarantee of the quality of the house
- usually a new house.
WARRANTY DEED
Deed guaranteed by the seller that the title conveyed is represented
by the deed. A general warranty deed includes a covenant whereby
the seller protects the buyer against faults in the title.
In a special warranty deed the seller agrees only to protect
the buyer against claims made by the seller.
ZONING
Procedure for classifying real property for various uses usually
in accordance with a land use plan that has been approved
by a governing body for a sizable area.
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Licensed Mortgage Banker and/or Authorized Lender in all 50 states and
the District of Columbia