Mortgage

Mortgage

The business of lending money for the purchase of real property which is repayed in security interest.

Industry: Banking; Real estate

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Mortgage

Reverse mortgage

Banking; Mortgage

A loan to an elderly home owner on which the balance rises over time, and which is not repaid until the owner dies, sells the house, or moves out permanently.

Rent premium

Banking; Mortgage

An increment above the rent paid on a lease-to-own home purchase, which is credited to the purchase price if the purchase option is exercised, but which is lost if the option is not exercised.

Referral power

Banking; Mortgage

The ability to direct a client to a specific vendor. Referral power is based on information and authority of the referrer, and ignorance of the client.

Referral site

Banking; Mortgage

A mortgage web site that introduces potential borrowers to participating lenders, in some cases to multiple hundreds of them.

Rate sheets

Banking; Mortgage

Tables of interest rates and points that lenders distribute daily to their loan officer employees or mortgage brokers.

Homeowners insurance

Banking; Mortgage

Insurance purchased by the borrower, and required by the lender, to protect the property against loss from fire and other hazards.

Requirements stipulated by the lender that the ratio of housing expense to borrower income, and housing expense plus other debt service to borrower income, cannot exceed specified maximums, e.g., 28% ...