Mortgage Glossary Term - C

Cap—It is maximum allowable increase, for either interest rate or payment for a specified amounts of time on an adjustable rate mortgage.

Mortgage Glossary - B

BACKUP CONTRACT: It is a contract through which our purchase and sale of a particular property becomes effective when the another contract for the same property fails.

Balloon: The amount of loan balance remaining at the time loan contract calls for full repayment is called balloon.

Balloon Mortgage –It behaves like a fixed-rate mortgage for a set of number of years (generally five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

Balloon Payment—A Balloon Payment is a lump sum payment for the unpaid balance of the loan.
BAIT AND SWITCH: An illegal advertisement of low interest loans by the lenders to lure the customers. After that they reveal that the stock is limited and offer a very substitute loan with higher rate.

Bankruptcy: It is a legal declaration that you are unable to pay all of your bills in which a court will allow you to clear your debts by paying a percentage of each of them.

BINDER: It is a contract between an insurance buyer and his(her) agent to provide temporary insurance coverage to the former until the policy is delivered.

Bill of Sale - A written document that transfers a title to personal property or properties is called bill of sale
Bimonthly mortgage: A mortgage on which the borrower pays half the monthly payment on the first day of the month, and the other half on the 15th is called Bimonthly mortgage.

Biweekly mortgage: In this mortgage requiring payment two times in a month rather than monthly it means each payment is half of what a monthly payment would be.

Blanket Mortgage –A special type mortgage secured by the pledging of more than one properties or collateral is called Blanket Mortgage.

BLENDED PAYMENT: It is a loan payment that includes principal and interest both and the loan payment remains the same with the principal increasing over time and the interest decreasing.

BRIDGE LOAN: This kind of loan that bridges the gap between purchasing a new home and the sale of the borrower's current home which the buyer takes on his current residence to finance his new residence.

Broker - An individual in any business of assisting in arranging funding or negotiating contracts for a client. Mostly brokers charge a fee or receive a commission for their services.

BUDGET MORTGAGE: A special types of mortgage in which the borrower (which take MORTGAGE) as per his/her suitability makes the monthly payments for insurance premiums, property tax besides paying for the principal and interest.

Builder-financed construction: Having the builder finance the construction.

BUY DOWN MORTGAGE: A kind of mortgage in which the interest rate is decrease to an extent so that in the initial period the Borrower(which takes MORTGAGE) has to make less monthly payments.

BUY- TO- LET- MORTGAGE: When Borrower purchase a property which will be rented out to tenants of loan taken by the borrower is called BUY- TO- LET- MORTGAGE.

Most Popular Mortgage Terms - Mortgage Glossary

ABANDONMENT : The act of giving up one's property voluntarily any without intending to reclaim it.

ABSOLUTE AUCTION : ABSOLUTE AUCTION is a types of auction in which a property is sold to the bidder and offering the highest money without considering the winning bid.

ABSORPTION RATE : It is a rate that gives us an rough idea of the number of properties bought and sold in a specified market.

Adjustable Rate Mortgage (ARM) : It is an interest rate that changes periodically in relation to an index called Adjustable Rate. The payments may increase or decrease accordingly.Amortization— Amortization is a repayment method in which total amount you borrow is repaid gradually though regular monthly payments of interest and principal.

Annual Membership : Annual Membership is An amount that may be charged annually for having a line of available credit.They Often charged regardless whether you use the line or not.Annual Membership is Also referred to as a participation fee.

Annual Percentage Rate (APR) : It is the rate of interest on a yearly basis, which includes charges on the mortgage loan and the interest payment.

Application (Mortgage Application) : Application is an initial statement of financial information and personal information which is required to approve your loan.
Application Fee-- A small (or may be big in some time)amount that are paid upon application. An application amount(fee) may frequently include charges for property appraisal ($200-$400) and a credit report ($30-50).

Assessment : The Process in which we determining a property's value for the purpose of taxation is called Assessment.

Assumable Loan : This types of loans may be passed on from a seller of a home to the buyer. The buyer "assumes" all outstanding payments.

ATTORNEY WITNESS FEE : An attorney is required to be present at the time of closing of a loan. He acts as a witness to signing the legal papers and charges a fee for that.

What is a mortgage?

In one line we can say A mortgage is a loan that we take out to buy some property or properties or anything else.
There are numbers of finance companies which provides mortgage.
We can take mortgage directly from banks, specialist mortgage, building societies, lenders and corporatives.
People take Mortgage for different purpose like Home purchases, Car, Marriage, Study etc.

About Mortgage

Mortgage is a way of using properties whether it is real or personal .We provide the complete defination, terms assiciated with mortgage,Informations and everything about mortgage.

There are numbers of Definition of mortgage few of them are given below:
1. Mortgage is the methode of using properties.
2. A process by which real property is pledged as security.
3. Mortgage is a conditional conveyance of real property as security for the repayment of a loan.