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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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Satisfaction of
Mortgage The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage." |
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Seasoned Loan A loan with an established record of timely payment by the borrower. |
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Second / Vacation
Home Second home/vacation home is a property that is not your primary residence and that you occupy less than six months a year. |
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Second Mortgage A mortgage that does not have first lien position; a junior mortgage. A mortgage made subsequent to a first mortgage and subordinate to the first one. |
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Secondary Financing Money borrowed to pay part of the required down payment or closing costs for a first loan, when the second loan is secured by the same property that secures the first loan. |
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Secondary Market The market in which investors (including Fannie Mae, Freddie Mac, and Ginnie Mae) purchase real estate loans from lenders; also called the national market. |
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Securities Investment instruments, such as stocks and bonds. |
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Securities,
Mortgage-Backed Investment instruments that have pools of real estate loans as collateral; issued and sold to investors by the major secondary market agencies (Fannie Mae, Freddie Mac, and Ginnie Mae) and other companies. |
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Seller Financing When a seller extends credit to a buyer to finance the purchase of the property; as opposed to having the buyer obtain a loan from a third party, such as an institutional lender. |
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Servicing The process of collecting loan payments, keeping the records associated with loans, and handling defaults. |
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Settlement Closing, the final stage in a real estate transaction. |
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Settlement Statement A document that presents a final, detailed accounting for a real estate transaction, listing each party's debits and credits, and the amount each will receive or be required to pay at closing. Also called a closing statement. |
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Shared Appreciation
Mortgage (SA A mortgage in which a borrower receives a |
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Sheriff's Deed The deed that is given to someone who purchases property at a fore-closure sale, after the statutory redemption period has expired. |
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Simple Interest Interest which is computed only on the principle balance. |
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Single Family
Residence A single family residence is a free-standing housing structure or single unit that does not share walls with any other homes. A house designed for use by one family. |
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Stable Monthly
Income Gross monthly income (from primary and secondary sources) that meets the lender's tests of quality and durability. |
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Subordination When a mortgagee or trust deed beneficiary agrees to accept lower lien priority than he or she is entitled to, allowing a lender with a lien recorded later to have higher priority. |
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Subordination Clause A provision in a mortgage or deed of trust that permits a later security instrument to have higher lien priority than the one in which the clause appears. |
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Sweat Equity Equity created by a purchaser performing work on a property being purchased. |
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