Simple Definition: When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan.
Category: Glossary Terms
Cash Flow
Simple Definition: The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to
Cash Out
Simple Definition: Receiving money back when refinancing your present mortgage.
Certificate of Eligibility
Simple Definition: The document given to qualified veterans which entitles them to VA loans for homes, business, and mobile homes. Certificates of eligibility may be
Certificate of Title
Simple Definition: A statement provided by an abstract company, title company, or attorney stating that the title of real estate is legally held by the
Closing Costs
Simple Definition: Any fees paid by the borrowers or sellers during the closing of the mortgage loan. This normally includes an origination fee, discount points,
Collateral
Simple Definition: An asset that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to
Commitment
Simple Definition: A promise by a lender to make a loan on specific terms or conditions to a borrower or builder. A promise by an
Contract Sale or Deed
Simple Definition: Contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of
Amortization
Simple Definition: A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest. During the first