Glossary

Modified Accelerated Cost Recovery System.

Activities required to compensate for wear and tear on a property.

The fee charged for professional property management. Usually set at a fixed percentage of total rental income generated by the managed property.

A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another particularly for high valued properties. For our comparison purposes, this fee is considered to be a tax or other unavoidable fee.

The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period.

A homeowners' association sometimes formed in a large condominium project or planned unit development (PUD) that is made up of representatives from associations covering specific areas within the project.

The date on which the principal balance of a financial instrument becomes due and payable.

Usually, a loan amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product.

A credit report that contains information from at least three credit repositories. Any duplicate entries are combined to provide a concise summary of your credit.

Indicate whether the military service was as an Active Duty Member, Reserve Service Member or National Guard Member.

Actions by the Federal Reserve System to influence the cost and availability of credit, with the goals of promoting economic growth, full employment, price stability and balanced trade with other countries.

A type of savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions may apply to the withdrawal of funds.

A mutual fund that allows individuals to participate in managed investments in short-term debt securities, such as certificates of deposit and United States Treasury bills.

The monthly payment required to pay back your equity loan is calculated in accordance with the program you selected. In the case of the 15 year fixed rate or balloon loan, the monthly payment will not change during the term of the loan. If you choose our equity line of credit, the monthly payment is calculated based on the balance due.

The legal document used by a borrower to pledge their property as security in order to obtain a loan. In some areas of the country, the mortgage is called a "deed of trust".

A company that originates mortgages for resale in the secondary mortgage market.

Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The borrower usually pays the cost of the insurance and is most often required if the loan amount is more than 80% of the home's value. Sometimes referred to as private mortgage insurance.

Amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company.

A type of term life insurance often bought by mortgagors. In the event that the borrower dies while the policy is in force, the debt is automatically repaid by insurance proceeds. Not to be confused with mortgage insurance.

A fee or tax charged by some state and local governments when a mortgage is obtained. For our comparison purposes, the mortgage registration fee is considered to be a tax and other unavoidable fee.

A tax charged by some state or local governments that is paid to the state when a mortgage is obtained. For our comparison purposes, the mortgage tax is considered to be a tax and other unavoidable fee.

The person or company who provides the loan funds to the borrower.

The person who receives funds from a lender in exchange for a security interest in the property. Commonly known as the borrower.

A residential mortgage on a dwelling that is designed to house more than four families, such as an apartment complex.