|
Mortgage Title Related Reference Links
Virginia Peninsula
Association of Realtors (VPAR)
Hampton
Roads Realtors Association (HRRA)
4Relo.Com
- Title and mortgage information link
Title Insurance Glossary
Abstract of Title - A condensed history or summary of all transactions
affecting a particular tract of land.
Adjustable Rate Mortgages - Mortgages with an interest rate that
may change up or down depending on an indicator. These are usually
based something like the current Treasury bill rate.
Affidavit - A sworn statement in writing.
All-Inclusive Title insurance - This means that most title insurance
charges are included in one price.
Amortize - To reduce a debt by means of regular periodic payments
which include amounts applicable to both principal and interest.
APR - Annual percentage rate. On some mortgages the APR is higher
than your actual mortgage rate.
Assumption - A mortgage that allows a new owner to take over
payments. The original borrower remains liable on the mortgage
note.
Deed - A written document by which the ownership of land is transfered
from one person to another.
Deed of Trust - Instrument used to secure a loan on real estate.
Like a mortgage, generally used in the South. The major difference
is in how forclosures are handled. Forclosures are much faster
with a Deed of Trust than with a Mortgage.
Deposit or Earnest Money - Advance payment of part of the purchase
price to bind a contract for property.
Due-on-Sale Clause - A provision in a mortgage or deed of trust
which requires the loan to be paid in full if a property is sold
or transfered.
Equity - The interest or value which an owner has in real estate
over and above the debts against it.
Escrow - (1) A procedure whereby a disinterested third party
handles legal documents and funds on behalf of a seller and buyer.
(2) Money that is kept by the mortgage company to ensure that
taxes can be paid in full when due. This is paid up front on settlement
sheet lines 1001 - 1006 and is added to the mortgage payment monthly
over the prinicial and interest figure.
FNMA (Fannie-Mae) - The Federal National Mortgage Association,
a federally sponsored private corporation which provides a secondary
market for housing mortgages.
Fixed Rate Mortgages - Mortgages with a fixed interest rate.
You payment for principal and interest will not change for the
life of the loan. Your monthly payment may change if taxes or
insurance rates change.
FHA - The Federal Housing Administration. An agency of the federal
government which insures private loans for financing of new and
existing housing and for home repairs under government approved
programs.
FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation.
An affiliate of the Federal Home Loan Bank, which creates a secondary
market in conventional residential loan and FHA and VA loans by
purchasing mortgages from members of the Federal Reserve System
and the Federal Home Loan Bank System.
Foreclosure - Legal process by which a mortgagor of real property
is deprived of his interest in that property due to failure to
comply with terms and conditions of the mortgage.
Grantee - A person who acquires an interest in land by deed,
grant or other written instrument.
Grantor - A person who, by a written instrument, transfers to
another interest in land.
Hazard insurance - The homeowner's insurance policy.
Heir - One who might inherit or succeed to an interest in lands
under the rules of law applicable where an individual dies without
leaving a will.
In personam - Directed at specific persons rather than against
property or generally for all people.
In rem - Pertaining to property or people in general.
Interest only payments - A mortgage where only the interest is
paid on a monthly basis. This means that the buyer gets no equity.
This is only used on some purchase money mortgages where the buyer
is responsible for paying the seller the entire amount of the
second mortgage at some time in the future.
Instrument - A written document.
Loan origination fees - Money required by the lender to be paid
to start the work of approving a mortgage.
Judgment - A decree of a court.
Lien - A hold, a claim or charge allowed a creditor upon the
lands of a debtor.
Mortgage Note - An instrument used to encumber land as security
for a debt. This document gives the mortgage company "in
rem" jurisdiction over the mortgagor.
Mortgagee - A designation for the mortgage lender on lands.
Mortgagor - A designation for the mortgage borrower on lands.
MIP - Mortgage insurance protection
Note - A written promise to pay a certain amount of money, at
a certain time, or in a certain number of installments. It usually
provides for payment of interest and its payment is at times secured
by a mortgage.
The mortgage note document gives the mortgage company "in
rem" jurisdiction over the mortgagor.
The promisory note document gives the mortgage company "in
personam" jurisdiction over the mortgagor.
P.O.C. - Paid outside of closing. Sometimes the lender requests
this money before settlement. If you pay any charges before settlement
they should be written on the settlement sheet. They are written
on the proper line outside of your column. They should also be
marked P.O.C.
Point - a percentage point. Equal to one percent of the loan
amount.
Power of Attorney - An instrument authorizing another to act
on one's behalf as his agent or attorney.
PMI - Private mortgage insurance.
PMM - Purchase money mortgage. A mortgage given by the seller
simultaneously with the purchase of real estate to secure the
unpaid balance of the purchase price.
Pro-Rate - To allocate between seller and buyer their proportionate
share of an obligation paid or due.
Promisory NoteA promise to pay. The promisory note document gives
the mortgage company "in personam" jurisdiction over
the mortgagor.
Real Property - Land and that which is affixed to it.
Reissue Rate - A reduced rate of title insurance premium applicable
in cases where the owner of the land has been previously insured
in an owner's policy by the insurer within a certain time.
Second Mortgage - A mortgage, the lien of which is subordinate
to that of another mortgage.
Survey - The process of measuring land to determine its size,
location and physical description and the resulting drawing or
map.
Tax Service Fee - A fee paid to the mortgage company to verify
that they actually pay the real estate taxes.
Title - The evidence or right a person has to the ownership and
possession of land.
Title Insurance - Insurance against loss or damage resulting
in defects or failure of title to a particular parcel of real
property.
Title Insurance Binder or Commitment - A report issued by a title
insurance company binding or committing the title insurance company
to issue the form of policy designated in the commitment or binder
upon compliance with and satisfaction of requirements set forth
in the commitment or binder.
Title Search - An examination of public records and court decisions
to disclose the current facts regarding ownership of real estate.
Transfer taxes - Money paid to the county and or state when property
is sold.
VA - The Veterans Administration. They insure mortgages.
Will - A written document properly witnessed, providing for the
distribution of property owned by the deceased.
|
