Mortgage
Terms Defined G-M
Basic
Terms Used for Mortgages
Terms: A-F
G-M N-S
T-Z
Loans
may involve other terms. In the event you don't
understand some of these terms, ask for help from
your lender or attorney.
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.
