Mortgage Glossarys
What is Sale agreement?
A contract signed by buyer and seller stating the terms and conditions under which a property will be…
What is Satisfaction?
The payment of a debt that satisfies an…
What is Second mortgage?
A subordinate mortgage made in addition to a first…
What is Secondary mortgage market?
The market into which primary mortgage lenders sell the mortgages they make to obtain funds to originate more new loans. This includes investors such as Fannie Mae and Freddie…
What is Security?
The property that will be pledged as collateral for a…
What is Seller Carry-back?
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage. See Owner…
What is Seller’s broker?
An agent hired by a seller to represent him/her in negotiations to sell…
What is Seller’s market?
Market conditions that favor sellers. With more buyers than sellers in the market, sellers have the negotiating power as demand exceeds…
What is Servicer?
An organization that collects principle and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in…
What is Servicing (or Loan administration)?
The collection of mortgage payments from borrowers and related responsibilities (such as handling escrows for property tax and insurance, foreclosing on defaulted loans and remitting payments to…
What is Settlement (or Closing)?
A meeting between the buyer, seller and lender (or their agents) where property and funds legally change…
What is Settlement cost (HUD guide)?
A booklet given to consumers after applying for a loan that provides an overview of the lending…
What is Settlement costs?
See Closing…
What is Settlement sheet (HUD-1)?
The computation of costs payable at closing that determines the seller's net proceeds and the buyer's net…
What is Short Sale?
A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree…
What is Simple interest?
Interest that is computed only on the principal…
What is Standard Payment Calculation?
The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current…
What is Start rate?
A pre-determined rate of interest that will be applied to the loan until the date of the first interest rate…
What is Step-Rate Mortgage?
A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate…
What is Subsidized second mortgage?
Alternative financing option for low- and moderate-income households that also includes a down payment and a first mortgage, with funds for the second mortgage provided by city, county or state…
What is Survey?
A measurement of land, prepared by a licensed surveyor, showing a property's boundaries, elevations, improvements and relationship to surrounding…
What is Sweat equity?
Value added to a property by improvements made by the…
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