Satisfaction of Mortgage
When the mortgage is repaid in full, the lender issues this document.
Second Mortgage
A mortgage made in addition to an existing mortgage on a given property.
Secondary Mortgage Market
Primary mortgage lenders sell their mortgages to this market to generate more funding in order to create more loans.
Servicing
Actions taken by the lender to keep a client's loan in "good standing." This includes payment collection, tax payments, insurance, etc.
Settlement/Settlement Costs
See closing/closing costs.
Shared Appreciation Mortgage
This type of mortgage features a borrower who receives an interest rate below market value in exchange for the lender receiving a portion of the appreciation of the property value in the future.
Simple Interest
Interest that is calculated on the loan's principal only.
Survey
A land surveyor measures a piece of land, marking its location in reference to particular points and its dimensions.
Sweat Equity
This type of equity is created by a buyer performing work on the piece of property being bought.
Title
A document proving ownership of a piece of property.
Title Insurance
Insures the homebuyer against any errors that occur in the title search.
Title Search
An examination of records to determine the legal owner of a property.
Truth-In-Lending
This law requires a lender to disclose the APR to homebuyers after they have applied for the loan.
Two-Step Mortgage
In this type of mortgage, the borrower receives an interest rate below the going market value for a set number of years, and then receives an adjusted interest rate when this specified amount of time has expired.
Underwriting
The lender's decision to make a loan to a potential client based on credit history, employment, and other factors that would affect the amount of risk involved in the transaction.
Usury
Interest charged that surpasses the legal rate.
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