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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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One Year Adjustable Mortgage whose interest rate changes annually. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender, and restricted by periodic caps. |
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Open End Loan A loan that permits the borrower to re-borrow the money he or she has repaid on the principal, usually up to the original loan amount, without executing a new loan agreement; similar to a line of credit. |
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Option A contract that gives one party the right to do something (such as purchase a piece of property), without obligating him or her to do it. |
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Option Money The consideration paid a buyer/optionee that makes an option to purchase binding on the seller/optionor. |
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Option to Purchase An option giving the optionee the right to buy property owned by the optionor at an agreed price during a specified period. |
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Origination Fee The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the loan. |
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Other Debt Other debt includes, but is not limited to, alimony, child support, maintenance, day care, current housing expense and investment housing expense. |
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Other Income Other income includes dividends/interest and second jobs. Second jobs only applies if continuous for 2 years and there is a likelihood that it will continue. |
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Over-improvement An improvement that is more expensive than the value of the land justifies. |
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Overtime Indicate overtime pay if it has been continuous for a long period of time, and if it will continue. |
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