Mortgage
Terms Defined G-M
Basic
Terms Used for Mortgages
Terms: A-F
G-M N-S
T-Z
G | H
| I | K |
J | L | M
General Warranty Deed
The seller protects the buyer
from other requisitions to the title of the
property.
Government National Mortgage
Association (GNMA, Ginnie Mae)
Branches of a government agency
HUD that purchases VA and FHA loans then sells
Ginnie Mae securities to investors on Wall street.
Grantee
Buyer named in the deed.
Grantor
Seller named in the deed.
Graduated Payment Mortgage
(GPM)
The first few years of the mortgage
payments are low then gradually increase until
the loan is completely amortized.
Grandfather Clause
A change in the law that conflicts
with the previous law. However, under the grandfather
clause a business, etc. is still allowed to
continue under the previous law set forth.
Hazard Insurance
Fire Insurance-Insurance on the
home against fire and other risks.
Homeowner's Insurance-additional
coverage against theft and liability.
Homeowners Association
Homeowner's of a particular area,
community, planned unit development (PUD), or
complex that come to an agreement about the
rules and regulations along with property management.
Homestead
A law in which the owner and his
family can not be forced into sale because of
bad credit or debits that may have incurred.
Homestead Exemption
Available in some states - this
causes the assessed value of a principal residence
to be reduced by the amount of the exemption
for the purposes of calculating property tax.
Home Warranty Plan
Insurance Purchased around the
closing period. The insurance that covers appliances,
heating/cooling systems, etc.
Housing and Urban Development
Housing and community development
project implemented by government agencies.
Housing Code
Residential homes must follow
a set of standard safety and health regulations.
HUD 1
A closing agent makes a closing
document that states the settlement cost of
the loan. Once the agent finishes the document
it is sent to the buyer at closing.
Improvements
Adding value to raw land by the
development of homes, streets, and buildings,
etc.
Impound Account
Partial amounts of the borrower's
monthly payments which are used to pay certain
services such as taxes, hazard insurance, mortgage
insurance, lease payments, and other such things.
Income Property
Property that produces an income,
e.g. building offices, townhouses, apartments.
Index
An enumeration that graphs the
current economical situation. Indexes are then
used to change the rate of the loan.
Ingress and Egress
The ability to pass through a
piece of land however not allowing to park on
it.
Joint and Several Liability
A creditor can ask to be paid
in full by the borrower, in turn the borrower
is responsible for paying the full debt not
just a prorated portion.
Joint Tenancy
Property owned by 2 or more people
and in common behalf they follow the law that
if one owner dies the joint owner receives the
property (survivorship).
Judgment Lien
The claim made on the property
as a result from debt.
Jumbo Loan
A loan larger then the regulations
instituted by Fannie Mae or Freddie Mac.
Junior Mortgage
A mortgage which is in lower rank
to another. In many cases, other mortgages in
higher ranking to the junior mortgage will be
paid first.
Land Contract
The buyer is allowed to use and
occupy the land however, the deed is not given
to the buyer until the seller is given the full
sale price.
Lease with Option to Purchase
During the term of the lease or
other defined term, the lessee has the option
to purchase the property.
Lessee
A person who is renting property
by means of a lease.
Lessor
A person who is renting the property
to the lessee by means of a lease.
Lien
The claims of debt, judgment,
mortgage or taxes brought against a property.
Loan Application
Detailed information required
about the borrower and the property. This information
must be given to the lender before a loan can
be approved.
Loan origination fee or
points
The fee charged by a mortgage
lender or broker for originating a loan. Not
to be confused with discount points which are
used to buy down the rate of interest.
Loan to Value Ratio (LTV)
Total amount of loan divided by
the property value.
Loan Servicing
The acts of collection of loan
payments, property tax and escrows, foreclosing
on defaulted loans, remitting payments.
Margin
A fixed amount added to the loan
index that is used to determine the interest
rate on an adjustable mortgage.
Market Value
The lowest price a seller is willing
to accept and the highest a buyer is willing
to pay on a given property. Market value may
fluctuate during any given period of time.
Mechanics Lien
The ability for an unpaid contractor
or subcontractor to process a lien against property
for compensation.
Mortgage
A written statement that forms
a lien on property as security for the payment
of certain debts.
Mortgage Backed Security
(MBS)
A bond that is protected/secured
by mortgage loans.
Mortgage Banker
One who has expertise in originating
mortgage loans, servicing mortgage loans, and
selling mortgage loans to investors.
Mortgage Broker
Places appropriate loans with
borrowers and lenders. Eventually they (mortgage
brokers) are paid when there is a closing on
the loan.
Mortgagee
The lender.
Mortgagor
The borrower.
Mortgage Note
A written statement that holds
the party responsible (mortgagor) for paying
off the loan. The statement is in secured by
a mortgage and is used as proof to show indebtedness.
In general, the note shows the debt that the
mortgage covers and holds the mortgagor responsible
for repaying.
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