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Laguna Beach Mortgage 949-495-5885
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Mortgage Glossary |
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Use this glossary to look up definitions of mortgage terms. The definitions given here explain how the terms are used in the field of real estate finance.
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Impound Account An escrow account maintained by a lender for paying property taxes and insurance premiums for the security property; the lender requires the borrower to make regular deposits, and pays the expenses out of the account when they come due. Also called a reserve account. |
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Income Property Property that generates rent or other income for the owner, such as an apartment building. |
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Index A published statistical report that indicates changes in the cost of money (market interest rates), used as the basis for interest rate adjustments in an ARM. |
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Installment An Installment loan, such as a student loan or car loan, is a debt that is regularly reported for a specific amount and for a specific term. |
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Interest A periodic charge a lender requires a borrower to pay in exchange for the loan, usually expressed as a percentage of the principal. |
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Interest Only Loan A loan that calls for payments of only the interest due during the loan term, so that the entire principal amount is due in one lump sum at the end of the term. |
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Interest Rate Cap A provision in an ARM that limits the amount that the interest rate may be increased (and in some cases, decreased). |
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Interim Financing A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion. |
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Investment/Rental
Property Property that you do not occupy which is rented, leased or used for other investment purposes. |
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