|| Pronounced ten-oh-three. Standard application form.
|| Tax deferred Exchange Refers to section 1031 of the internal revenue tax code, which allows taxable gain to be deferred by exchanging property which is help for business or investment
|| 30 year loan that is fixed for the first 5 years, and then adjusts each year after that to a predetermined index. The same concept applies to 7/1. 3/1 and 10/1 ARMS.
|| A loan which is fixed for 5 years, and then has a one time adjustment to a new rate, or has a conditional “right to refinance option”. The same concept applies to a 7/23
|| Adjustable Rate Mortgage
||Security instrument recorded in public records as evidence of mortgage debt.
Ties the NOTE to Property in question.
|| Contract that details the agreement between the borrower and the lender. Specifies interest rate, repayment terms, and remedies for default. Is often secured by a Deed of Trust in California Mortgage transactions.
|| Combination of two loans funding concurrently, usually used in a purchase transactions to avoid
|| Principle, Interest, Taxes & Insurance. Refers to total monthly housing
|| Private Mortgage Insurance. Protects the Lender against a default by the borrower. Paid for by the borrower. Often required when the borrower has less than 20% down. Typically .52% with 10% down. Higher with less down, and lower with more down. FHA loans have
MMI, which is similar.
|Prelim / Preliminary Title Report
|| Initial report of liens, judgments, attachments to a specific real property. Prepares the title insurance company to issue a policy of title insurance, and indicates which items, if any, would need to be cleared in order to issue clear title.
|| Insures clear title in Real Estate and mortgage transactions. Required by virtually all lenders and is a closing cost associated with both purchase and refinance
A prepayment penalty is a charge by the lender if the loan is paid off
early, and is usually limited to a maximum of 5 years. A Hard prepayment penalty will apply anytime the loan is
paid off during the period in which it applies. A soft prepayment penalty
does NOT apply if the property is sold.