Laguna Beach Mortgage
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Mortgage Glossary
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.
Money given to a buyer, by a relative or approved non-profit organization, for the purpose of covering the costs to purchase a property.
A document in which a donor states that money given to a prospective borrower is not a loan and does not have to be repaid.
Also known as "GNMA" (Government National Mortgage Association), provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
An estimate from an institutional lender that outlines the costs a borrower will incur during the process of buying a home.
A type of flexible payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
An individual's income before income taxes have been deducted.
A figure used to estimate the value of residential rental property, determined by dividing the sales price by the monthly rental income.
A fixed rate loan with annual payment increases that are used to reduce the principal balance, so that the loan is paid off much more quickly than it would be with ordinary level payments.