Select Glossary Term: 80-10-10 ----------A---------- abstract of title abutting accelertaion clause acceptance acknowledgement acre additional principal payment adjustable rate mortgage (ARM) adjusted basis adjustment period adjustments adverse possession agency alienation Clause amenities ammendment amortization schedule annual percentage rate (APR) application application fee appraisal appraised value appreciation asking (list) price assessed value assessment assessor asset assignee assignment assumable mortgage assumption of mortgage auction ----------B---------- balloon mortgage balloon payment bankruotcy bill of sale biweekly mortgage blanket mortgage blockbusting bonus to selling agent breach of contract bridge loan broker brokerage BSTA bundle of rights buy down buyer's broker ----------C---------- calendar year cap capital gains cash out CC&R CCCS ceiling Certificate of Eligibility chain of title channeling chattel cleaning fee clear title closing closing costs closing statement cloud on title co-borrower co-op co-tenants collateral collection commingling commission common area assessments common areas common law comparables compound interest condemnation condominium condominium conversion consideration construction loan Consumer Credit Counseling Service (CCCS) contingency contract contract of sale conventional loan convertible ARM conveyance cooperative housing counter offer covenant covenants, conditions & restrictions (CC&Rs) credit credit bureau credit file credit history credit insurance credit limit credit report credit score creditor cul-de-sac ----------D---------- DBA debt debt service debt-service ratio deduction deed deed in lieu (of foreclosure) deed restrictions default delinquency delivery deposit depreciation descent devise disclosure discount points (or points) discount rate dominant tenement down payment dual agency due on sale duress ----------E---------- earnest money earnest money contract (EMC) easement easement by prescription effective interest rate egress eminent domain encroachment encumbrance endorsement Equal Credit Opportunity Act (ECOA) Equal Treatment/Different Impact equity escalator clause escheat escrow escrow account escrow analysis escrow disbursements estate eviction examination of title exception excusive right to sell (ERS) expropriation ----------F---------- Fair Credit Reporting Act Fair Housing Act & Fair Housing Amendments Act fair market value Fannie Mae Federal Deposit Insurance Corporation (FDIC) Federal Emergency Management Agency (FEMA) Federal Housing Administration fee simple fee simple estate FHA fiduciary first mortgage fixed mortgage rate fixture flood insurance flood plain For Sale By Owner (FSBO) foreclosure forfeiture fraud Freddie Mac FSBO functional obsolescence ----------G---------- gated community Ginnie Mae good faith estimate government survey method grace period grantee grantor gross debt service gross income gross lease ----------H---------- hazard insurance highest and best use hold harmless Home Equity Conversion Mortgage (HECM) home equity loan home warranty home inspection homeowners' association (HOA) homeowners' insurance house closing Housing and Urban Development, Department of (HUD) HUD ----------I---------- implied warranty of habitability improvements incidents of ownership income approach to value index ingress inspection clause insurable title interest interest rate intestate intimidation invitee ----------J---------- joint tenancy judgement judicial foreclosure jumbo loan ----------L---------- laches landlord late charge latent defect lease lease option lease purchase leasehold estate legal description lender lessee lessor leverage liabilities liability insurance lien lien theory state life cap life estate life tenant line of credit lis pendens listing agreement loan loan officer loan origination loan servicing loan-to-value ratio (LVT) lock or lock in lock-in period LTV ----------M---------- madatory continuing education (MCE) manufactured home margin market approach to value market value maturity mechanic's lien mediation metes and bounds mineral rights minimum payment minority misrepresentation modification mobile home month-to-month tenancy monument mortgage mortgage banker mortgage broker mortgage loan mortgagee mortgage insurance mortgage insurance premium mortgage life and disability insurance mortgager Multiple Listing Service (MLS) ----------N---------- negative amortization no cash-out refinance no-cost loan non-escrowing loan note note rate notice of default nuisance ----------O---------- obsolescence offer open house option option fee ordinance original principal balance origination fee owner financing ----------P---------- partial payment payment change date percentage lease periodic payment cap person personal property personalty physical deterioration PITI planned unit development (PUD) plat book points police power power of attorney (POA) pre-approval prepayment prepayment clause in a mortgage prepayment penalty pre-qualification prime rate principal principal balance private mortgage insurance (PMI) promissory note property taxes pro-rate public auction purchase agreement purchase offer ----------Q---------- qualify qualifying ratios quiet enjoyment quitclaim deed ----------R---------- rate lock ready, willing and able real estate real estate agent real estate board Real Estate Settlement Procedures Act (REPSA) real property REALTOR® realty receiver recorded plat recorder recording redlining refinance transactoin Regulation 'Z' release remainder remaining balance reserves reservation RESPA restrictions revolving debt right of first refusal right of ingress or egress right of survivorship riparian owner running with the land ----------S---------- sale-leaseback sales contract second mortgage secondary mortgage market secured loan security security deposit security interest self amortized loan servicing a loan servient tenement setback settlement statement short sale (of house) simple interest single-family home special warranty deed Statute of Frauds steering subdivision sublease subordinate financing subpoena substitution, principle of succession suit for specific performance survey sweat equity ----------T--------- taking tenancy by the entirety tenancy in common tenant tenants in common tenement term time is of the essence timeshare title title company title insurance title search title theory state town house triple net lease trustee Truth-in-Lending two-step mortgage ----------U---------- underwriting unlawful detainer usury ----------V---------- VA variable rate variance vendee vendor virtual home tour void voidable ----------W---------- waiver walk through warranty deed writ of execution ----------Z---------- zoning

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negative amortization
Amortization in which the payment made is insufficient to fund complete repayment of the loan at its termination. Usually occurs when the increase in the monthly payment is limited by a ceiling. The portion of the payment which should be paid is added to theremaining balance owed. The balance owed may increase, rather than decrease over the life of the loan.

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no cash-out refinance
A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is caculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a "rate and term refinance."

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no-cost loan
Almost all lenders offer loans at "no points." You will find the interest rate on a "no points" loan is approximately a quarter percent higher than on a loan where you pay one point.

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non-escrowing loan
Typically, mortgage lenders require escrow accounts for property taxes, hazard insurance, and sometimes, homeowner's association dues.  Monthly contributions to these accounts are rolled into a lender's mortgage payment.  In Texas, escrow accounts are non-interest bearing, so many borrowers prefer the option of keeping the monies for their hazard insurance and property taxes in their own interest bearing accounts, until they become due.  Most lenders only allow non-escrowing loans on mortgages with an 80% or lower, loan-to-value ratio.
Property taxes can be paid as late as January 31st of the following year before interest and penalties begin to accrue.  If the borrower has the discipline to save the monies for taxes and insurance independently, a non-escrowing loan would be the smart choice.  Most lenders charge a one-time fee at closing for selecting the non-escrow option.  Non-escrowing loans also have lower closing costs since the lender does not collect reserves, which place a 2-3 month cushion of pro-rated payments in the escrow account.  Additionally, the seller's pro-rated share of the year's property taxes is applied directly to the buyer's closing costs, instead of being placed into the escrow account.

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note
A written instrument of credit attesting to a debt and promise to pay.

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note rate
The interest rate stated on mortgage note.

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notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.

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nuisance
Something that interferes with the use of property by being irritating, offensive, obstructive or dangerous. Nuisances include a wide range of conditions, everything from a chemical plant's noxious odors to a neighbor's dog barking. The former would be a "public nuisance," one affecting many people, while the other would be a "private nuisance," limited to making your life difficult, unless the dog was bothering others. Lawsuits may be brought to abate (remove or reduce) a nuisance. See quiet enjoyment.

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