Underwriter

Underwriter Definition

Underwriters The following article will cover all aspects of Underwriters including: What is an Underwriter, How does Underwriting work, types of Underwriters and the benefits of Underwriters. What is the definition of an Underwriter? The appraisal of a real estate investment, whether it be equity ownership or a real estate loan, is known as real […]

Personal Finance

Personal Finance Definition

Personal Finance The following article will cover all aspects of Personal Finance including: What is Personal Finance, How does Personal Finance work, What are the key factors of Personal Finance and the benefits of Personal Finance. What is the definition of Personal Finance? Personal finance is the process of budgeting, saving, and spending monetary resources […]

Second Mortgage

Second Mortgage Definition

Second Mortgage The following article will cover all aspects of a Second Mortgage including: What is a Second Mortgage, How does a Second Mortgage work, types of Second Mortgages and the benefits of Second Mortgage. How does a Second Mortgage work? What exactly does a second mortgage entail? Most people take out a home loan […]

Right of First Refusal

Right of First Refusal Definition

Right of First Refusal The following article will cover all aspects of Right of First Refusal including: What is the Right of First Refusal, How does the Right of First Refusal work, What are the negatives and benefits of the Right of First Refusal. What is the Right of First Refusal? The right of first […]

Truth In Lending Act

Truth In Lending Act Definition

Truth In Lending Act The following article will cover all aspects of the Truth In Lending Act including: What is the Truth In Lending Act, How does the Truth In Lending Act work, Who does the Truth in Lending Act apply to and the benefits of the Truth In Lending Act. What is the definition […]

Leasehold

Leasehold Definition

Leaseholds The following article will cover all aspects of Leaseholds including: What is a Leasehold, How does a Leasehold work, types of Leaseholds and benefits of Leaseholds. What is the definition of a Leasehold? A leasehold estate is the possession of a transitory right to hold land or property in which a lessee or tenant […]

Uniform Settlement Statement (HUD-1)

Uniform Settlement Statement Definition

Uniform Settlement Statement The following article will cover all aspects of a Uniform Settlement Statement (HUD-1) including: What is a Uniform Settlement Statement, How does a Uniform Settlement Statement work, What’s Included on a Uniform Settlement Statement and the importance of a Uniform Settlement Statement. What is the definition of a Uniform Settlement Statement? The […]

Right of Rescission

Right of Rescission Definition

Right of Rescission The following article will cover all aspects of the Right of Rescission including: What is the Right of Rescission, How does the Right of Rescission work, Why is the Right of Rescission important and the benefits of the Right of Rescission. What is the definition of the Right of Rescission? The Truth […]

Alabama Closing Costs

What are closing costs in Alabama

What are the Closing Costs in Alabama? Closing costs in Alabama are expected to range from $3000 to $5000, or 2% to 5% of the loan amount, depending on the size of the loan. Closing costs are the extra fees that come with buying a home. The majority of closing costs are charged by third […]

Warranty Deed

Warranty Deed Definition

Warranty Deeds The following article will cover all aspects of a Warranty Deed, including: What is a Warranty Deed, How does a Warranty Deed work, types of Warranty Deeds and the benefits of a Warranty Deed. What is the definition of a Warranty Deed? In contrast to a quitclaim deed, where the seller does not […]

Rollover Mortgage

Rollover Mortgage Definition

Rollover Mortgage The following article will cover all aspects of Rollover Mortgages including: What is a Rollover Mortgage, How do Rollover Mortgages work, Are Rollover Mortgages a good idea and the benefits of Rollover Mortgage. What is the definition of a Rollover Mortgage? A rollover mortgage is a loan to cover the unpaid balance, or […]

Tax Deed

What is a Tax Deed?

What is a Tax Deed? The term tax deed refers to a legal document granting ownership of a property to a government body when the owner fails to pay any associated property taxes. A tax deed gives the government agency the authority to sell the property to collect the delinquent taxes. Once sold, the property […]

RESPA

What Is RESPA?

What Is the Real Estate Settlement Procedures Act (RESPA)? The Real Estate Settlement Procedures Act (RESPA) was passed by the United States Congress in 1975 to enable accurate settlement cost disclosures to homebuyers and sellers. RESPA was also enacted to prevent bribes, limit the usage of escrow accounts, and remove abusive activities in the real […]

Secondary Mortgage Market

What is the Secondary Mortgage Market?

What Is the Secondary Mortgage Market? The secondary mortgage market is a marketplace where lenders and investors buy and sell home loans and servicing rights. The lenders who issue new mortgages sell a considerable percentage of them into the secondary market, where they are packaged into mortgage-backed securities and sold to investors like pension funds, […]

Rural Housing Service (RHS)

What is the Rural Housing Service?

What is the Rural Housing Service? The Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) provides or guarantees RHS loans (USDA). The Rural Housing Service (RHS) makes direct loans to low-income borrowers in rural regions and insures loans made by certified lenders who meet RHS criteria. More than house mortgages originated […]

Reverse Mortgages & Annuity

Reverse Mortgages and Annuity

What are Reverse Mortgages and Annuity? Although reverse mortgages and annuities are two quite distinct financial products, they are both intended to produce a consistent, reliable stream of income for retirement. However, if you’re contemplating either of these solutions, you should be aware that they have significant distinctions. The most basic distinction is that a […]

Proration

What does Proration mean?

What does Proration mean? At closing, prorations are credits given to both the buyer and the seller. They make certain that each party pays solely for the time they held the house. On each party’s closing statement, they will show up as debits or credits. Prorations are usually assessed to buyers. On the buyer’s closing […]

Property Tax

What is Property Tax?

What is Property Tax? Property tax is a tax levied on property owned by a person or another legal body, such as a business. Property tax is most typically a real estate ad-valorem tax, which is considered a regressive tax. It is determined by the local government in the area where the property is located […]

Prime Rate

What is the Prime Rate?

What is the Prime Rate? The prime rate is the rate of interest charged by commercial banks to their most creditworthy corporate clients. The prime rate is based on the federal funds overnight rate, and prime is the starting point for most other interest rates. Prime Rate Definition A prime rate, also known as a […]

Pre-Qualification

What is Pre-Qualification?

What is Pre-Qualification? Pre-qualification is a credit assessment made by a lender based on information submitted by the borrower. Before providing a pre-approval, the lender will assess the borrower’s creditworthiness. Lenders typically utilize this as a marketing strategy to attract new consumers, particularly for credit cards and mortgages. Pre-Qualification Definition Pre-qualification refers to a mortgage […]

Non-conforming Loan

What is a Non-Conforming Loan?

What Is a Non-Conforming Loan? A Non-Conforming mortgage loan is one that does not comply with the requirements of government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac and hence cannot be sold to them. GSE standards include, among other things, a maximum loan amount, acceptable properties, down payment requirements, and credit qualifications. Non-Conforming loan […]

Florida Closing Costs

Florida Closing Costs

Closing Costs Florida Closing costs in Florida are expected to range from 7% to 9% of the loan amount, depending on the size of the loan. Closing costs are the extra fees that come with buying a home. The majority of closing costs are charged by third parties who must be compensated for their involvement […]

Set to Draft by md Private Mortgage Insurance (PMI)

What is a Mortgagee?

What Is a Mortgagee? A mortgagee is a type of lender that lends money to borrowers for the purpose of purchasing real estate. In a mortgage transaction, the mortgagee is the lender, and the mortgagor is the borrower. The mortgage follows the property, so even if the borrower sells it to someone else, the mortgagee […]

Loan-to-Value Ratio

What is Loan-to-Value Ratio?

What Is Loan-to-Value (LTV) Ratio? Before approving a mortgage, financial institutions and other lenders look at the loan-to-value (LTV) ratio to determine lending risk. Loans with high LTV ratios are typically considered higher risk loans. As a result, if the loan is authorized, the interest rate will be greater. A loan with a high LTV […]

Set to Draft by MD Mortgagee

What is a Mortgagee?

What Is a Mortgagee? A mortgagee is a type of lender that lends money to borrowers for the purpose of purchasing real estate. In a mortgage transaction, the mortgagee is the lender, and the mortgagor is the borrower. The mortgage follows the property, so even if the borrower sells it to someone else, the mortgagee […]

Mortgage Banker

What is a Mortgage Banker?

What is a Mortgage Banker? A mortgage banker is a corporation, individual, or institution that specializes in the origination of mortgage loans. Mortgage bankers fund mortgages with their own money or money borrowed from a warehouse lender. A mortgage banker may decide to keep a mortgage in their portfolio or sell it to an investor […]

Margin

What is Margin?

What is Margin? In real estate Margin is the amount of money that an investor must deposit with their broker or exchange to cover the credit risk that the holder provides to the broker or exchange. When an investor borrows cash from a broker to buy financial instruments, borrows financial instruments to sell them short, […]

Maintenance Costs

What are Maintenance Costs?

What are Maintenance Costs? You’ll have to pay more than your monthly mortgage and living expenses whether you’re buying an apartment or condominium as an investment property or as your permanent residence. Monthly maintenance costs are an added cost of owning an apartment or condo. The monthly charge is used to fund the costs of […]

Assumption Clause

What is an Assumption Clause?

What is an Assumption Clause? An assumption clause in a mortgage contract allows the seller of a home to transfer liability for the current mortgage to the property’s buyer. In other words, the new homeowner takes over the old mortgage and, with it, the property that serves as collateral for the loan. The buyer must […]

Set to Draft by MD Mortgage Insurance

What is Mortgage Insurance?

What Is Mortgage Insurance? Mortgage insurance is a type of insurance that protects a mortgage lender or titleholder in the event that the borrower fails on payments, dies, or is otherwise unable to meet the mortgage’s contractual obligations. Private mortgage insurance (PMI), qualifying mortgage insurance premium (MIP) insurance, and mortgage title insurance are all examples […]