Tag: Mortgages
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Term
Term in the Context of Mortgage RefinancingsIn this context, a definition of Term may be distilled, worded as follows: The period from the time that a loan is made until it is fully paid.
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Settlement Costs
Settlement Costs in the Context of Mortgage RefinancingsIn this context, a definition of Closing (or Settlement) Costs may be distilled, worded as follows: Fees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title […]
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Loan Origination Fees
Loan Origination Fees in the Context of Mortgage RefinancingsIn this context, a definition of Loan Origination Fees may be distilled, worded as follows: Fees charged by the lender for processing a loan; often expressed as a percentage of the loan amount.
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Payment Cap
Payment Cap in the Context of Mortgage RefinancingsIn this context, a definition of Payment Cap may be distilled, worded as follows: A limit on the amount that your monthly mortgage payment on a loan may change, usually a percentage of the loan. The limit can be applied each time the payment […]
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Discount Points
Discount Points in the Context of Mortgage RefinancingsIn this context, a definition of Points (also Called Discount Points) may be distilled, worded as follows: One point is equal to 1 percent of the principal amount of a mortgage loan. For example, if a mortgage is $200,000, one point equals […]
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Prepayment Penalty
Prepayment Penalty in the Context of Mortgage RefinancingsIn this context, a definition of Prepayment Penalty may be distilled, worded as follows: Extra fees that may be due if you pay off your loan early by refinancing the loan or by selling the home. The penalty is usually limited to the […]
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Good Faith Estimate
Good Faith Estimate in the Context of Mortgage RefinancingsIn this context, a definition of Good Faith Estimate may be distilled, worded as follows: An estimated breakdown of the costs of a mortgage loan. The Real Estate Settlement Procedures Act (RESPA) requires your mortgage lender to give […]
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Escrow
Escrow in the Context of Mortgage RefinancingsIn this context, a definition of Escrow may be distilled, worded as follows: The holding of money or documents by a neutral third party before closing on a property. It can also be an account held by the lender (or servicer) into which a homeowner […]
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Annual Percentage Rate
Annual Percentage Rate (apr) in relation to Home Equity Lines of CreditIn this context, a definition of Annual Percentage Rate (apr) is provided: The cost of credit, expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, […]
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Amortization
Amortization in the Context of Mortgage RefinancingsIn this context, a definition of Amortization may be distilled, worded as follows: The process of fully paying off indebtedness by installments of principal and earned interest over a specific amount of time.
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Lock-in Agreement
Lock-in Agreement in the Context of Mortgage RefinancingsIn this context, a definition of Lock-in Agreement may be distilled, worded as follows: A written agreement guaranteeing a homebuyer a specific interest rate on a home loan provided that the loan is closed within a certain period, such as […]
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Application Fee
Application Fee in the Context of Mortgage RefinancingsIn this context, a definition of Application Fee may be distilled, worded as follows: Fees that are charged when you apply for a loan or other credit. These fees may include charges for property appraisal and a credit report.
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Principal
Principal in the Context of Mortgage RefinancingsIn this context, a definition of Principal may be distilled, worded as follows: The amount of money borrowed or the amount still owed on a loan.
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Interest Rate
Interest Rate in the Context of Mortgage RefinancingsIn this context, a definition of Interest Rate may be distilled, worded as follows: The price paid for borrowing money, usually stated in percentages and as an annual rate.
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Equity
Concept of Equity in Futures TradingIn this context of financial law, the following is a definition of Equity: As used on a trading account statement, refers to the residual dollar value of a futures or option trading account, assuming it was liquidated at current prices.