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| The penalty a borrower must pay when a payment is made a stated number of days (usually 10-15) after the due date. |
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| A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may use the real estate for a specified period of time and the amount of rent to be paid. |
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| A tenant's interest in or right to hold possession of a property. |
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| A property description, recognized by law, using a government rectangular survey, metes and bounds, or a plat map to sufficiently locate and identify a property. |
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| A person's debts or financial obligations. Liabilities include long-term and short-term debt, as well as potential losses from legal claims. |
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| Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. See also homeowners insurance. |
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| A legal claim against a property that must be paid off when the property is sold. A lien is created when you borrow money to purchase or refinance a home loan or and with obtain a home equity loan. |
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| For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap. |
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| The entire HELOC or Fixed Rate Second mortgage loan amount. |
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| An agreement by a lender to extend credit up to a certain amount for a certain time without the need for the borrower to file another application. See home equity line of credit. |
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| A cash asset or an asset that is easily converted into cash. |
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| A sum of borrowed money (principal) that is generally repaid over time with interest. |
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| A lender's agreement to advance money on specified terms after specified conditions are met. See commitment letter. |
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| The process by which a mortgage lender makes a home loan and records a mortgage against the borrower's real property as security for repayment of the loan. |
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| The ratio of the total amount borrowed on a mortgage against a property compared to the appraised value of the property. For example, if you have an $80,000 1st mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%). |
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| A written agreement in which the lender guarantees a specified loan program interest rate and points if a mortgage goes to closing within a set period of time. |
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| The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in. |
