study abroad tefl tesl service learning scholarly articles article writing on waste management dissertation writing memes travel article writing tips

Glossary

Lenders sometimes use terms and acronyms you may not be familiar with.  We do our best to explain everything in detail, but if you ever encounter a term we use that you are not familiar with - just ask! 

A payment schedule calculated using the interest rate, the number of years, and the number of payments per year. 

A payment schedule calculated using the interest rate, the number of years, and the number of payments per year.

Bridge loans are loans intended to be used for a short period of time between the initial requirements for funds and a permanent, usually less costly, financial solution. This term is synonymous with a Private Money Loan or a Hard Money Loan.

Commercial lenders offer a variety of mortgage-backed loans for commercial property. Each commercial lender sets economic, demographic, and geographic criteria.

The price a property would sell for on the open market.

The primary mortgage on a property that has priority over all other voluntary liens.

A hard money loan when the borrower’s situation does not conform with common real estate lenders’ standards for funding. Real estate provides the collateral for a hard money loan.  This term is synonymous with a Bridge Loan or Private Money Loan.

The collection of taxes and insurance into the monthly mortgage payment.

For all adjustable rate mortgages or ARM loans, the interest rate is calculated by adding the Index plus the Margin. Common Indexes include the LIBOR and the Prime Rate.

A simple ratio of the requested loan amount to the full market value of the collateralized property.

A certified, written estimate of value calculated by an independent, licensed appraiser.

A non-conforming loan refers to a type of loan that does not meet bank standards for funding. The flexibility of private money can allow for a much wider range of projects to be funded, although additional collateral and documentation may be required by the lender.

Property other than real property (real estate) consisting of things that are temporary or movable.

A point is 1 percent of the amount of the mortgage.

A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. This process is independent of, and previous to, the same underwriting review of a property.

A charge or penalty for prepaying a loan prior to an agreed-upon amount of time after close of escrow. Typically, this is in the form of guaranteed interest or as a percentage of the outstanding loan balance.

See Bride Loan or Hard Money Loan.

The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.

Scroll to Top