IT'S
GREEK TO ME
A-D /
E-H / I-P / Q-Z
Earnest
Money
Deposit
toward down payment submitted
with a purchase agreement as evidence
of the buyers commitment
Equifax
Information Services
PO
Box 740243
Atlanta,
GA 30374
(800)
685-1111
Escrows
The
portion of the monthly payment
that is not applied to principal
or interest, but rather is
used to pay mortgage insurance,
homeowners insurance and property
taxes.
Experian
Information Services
PO Box 2002,
Allen, TX 75013-3742
(888) 397-3742
Fannie Mae
Short
name for the Federal National
Mortgage Association. One of the
main Government Sponsored Agencies
which are the companies who sell
mortgage backed bonds to investors.
They are the ultimate source of
the money that we lend. Fannie
Mae protects its investors by
issuing underwriting guidelines
that are to be followed to ensure
quality lending; also see schematic
under "commonly
asked questions"
Freddie
Mac
Short
name for Federal Home Loan Mortgage
Corporation - see above
FHA
Financing
Government
backed minimum down financing
program which has a lower mortgage
insurance premium and greater
credit leeway as compared to conventional
minimum down programs
Fixed
Loan
Most
common type of financing. Terms
ranging from 10 to 30 years. Interest
rate and P&I
payment remains constant throughout
life of loan.
Floating
Not
locking in a rate, but rather
choosing to float the interest
rate as the market moves up
or down.
Flood
Certification
Required
document on all loans. Confirms
if the property is in or out of
a FEMA designated flood zone
Funds
held in Escrow
Generally
only applies to new construction.
Monies held from the seller to
provide payment for repairs or
non completed items.
Good
Faith Estimate
Document
prepared by lender which estimates
and delineates the various fees
and closing costs associated with
the home purchase
Government
Financing
Financing
provided from government agencies
such as FHA, VA etc…
HELOC
Home
Equity Line of Credit. Second
mortgage product, generally
characterized by interest
only payments and the ability
to draw, pay back, and redraw
Home
Inspection
Not
required by lender. This is a
private inspection done by the
buyers choice to confirm that
the property is in acceptable
condition.
Homeowners
Association Dues
Amount
paid by owner of a townhome or
condo to cover various amenities
or services provided by the homeowners
association (examples -- common
areas, hazard insurance, garbage,
mowing, snow removal)
Homeowners/hazard
Insurance
Insurance
which covers damage or loss to
the property. The premium is usually
paid into an escrow account held
by the mortgage company, which
then pays the insurance company
once a year
HUD-I
(Settlement statement)
Document
prepared by title company at closing
which shows where all of the money
in the transaction was coming
from and going to. |
