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

Dual index mortgage

Banking; Mortgage

A mortgage on which the interest rate is adjustable based on an interest rate index, and the monthly payment adjusts based on a wage and salary index.

Equity grabbing

Banking; Mortgage

A type of predatory lending where the lender intends for the borrower to default so the lender can grab the borrower's equity.

Debt consolidation

Banking; Mortgage

Rolling short-term debt into a home mortgage loan, either at the time of home purchase or later.

Equity

Banking; Mortgage

In connexion with a home, the difference between the value of the home and the balance of outstanding mortgage loans on the home.

Delinquency

Banking; Mortgage

A loan payment that is overdue, but within the period allowed before actual default is declared.

No ratio loan

Banking; Mortgage

A documentation requirement where the applicant's income is disclosed and verified but not used in qualifying the borrower. The conventional maximum ratios of expense to income are not applied.

Pipeline risk

Banking; Mortgage

The lender's risk that between the time a lock commitment is given to the borrower and the time the loan is closed, interest rates will rise and the lender will take a loss on selling the loan.