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NJ Real Estate
| Term | Definition |
|---|---|
| Index | Guide to national mortgage trends, used for adjustable mortgage rates |
| Interest | Charge for the use of other people's money |
| Loan-to-value ratio | (LVR) percentage of a property's market value that may be borrowed |
| Margin | Percentage charged by lender above index rate |
| New Jersey Housing and Mortgage Finance Agency | Lender of low interest money in certain areas |
| PITI | Mortgage payment, including interest, amortization, and certain expenses (clue: **principal, interest, and tax & insurance reserves**) |
| Point | 1% of the loan amount, charged as extra up-front interest when loan is made |
| Private mortgage insurance | Protection for the lender on a low-down-payment mortgage loan |
| Straight loan | Mortgage with payments of interest only |
| Target area | Neighborhoods in which the state wishes to strengthen housing stock |
| VA mortgage | |
| Fannie Mae | A privately owned corporation that sets standards and buys mortgages |
| Blanket mortgage | Mortgage covering more than one parcel of real estate |
| Construction loan | Straight loan for short building period |
| Credit union | Cooperative organization for members who save and borrow |
| Freddie Mac | Federal Home Loan Mortgage Corporation;warehouses packages of mortgages |
| Ginnie Mae | Government National Mortgage Association; pools mortgages for investors |
| Home equity loan | Additional financing for homeowner;usually a type of second mortgage |
| Interim financing | Bridge or seeing loan for short-term financing before a sale |
| Jumbo loan | Loan higher than those usually bought by the secondary market |
| Mortgage Banker | Agent who brings together lender and borrower for a fee |
| Mortgage broker | Agent who makes real estate loans |
| Open-end mortgage | Mortgage that provides possibility for further borrowing |
| Package mortgage | Mortgage covering both real and personal property |
| Portfolio loan | Loan not intended for resale on the secondary market |
| Primary mortgage market | Lending institutions that make mortgage loans to the public |
| Purchase-money mortgage | Seller financing |
| Qualifying ratio | Percentage of income borrower may spend on housing expense |
| Regulation Z | Implements the Truth-in-Lending Act |
| Reverse mortgage | Mortgage in which lender sends regular checks, building up debt |
| Sale-leaseback | Arrangement by which seller becomes tenant |
| Shared equity mortgage | Loan in which investor shares payments and profits |
| Triggering term | Words in an ad that require full disclosure of financing conditions |
| Truth-in-Lending Act | Regulates consumer loans |
| Underwriting | Process of deciding whether to make specific loans |
| Wraparound mortgage | Additional *Larger loan that does not disturb underlying mortgage |
Created by:
mari9800
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