Betty Goyens, Your Malibu Agent

Glossary

Wraparound Mortgage

2022-01-14T00:46:29-05:00January 14, 2022||

Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender [...]

Warehouse Fee

2022-01-14T00:46:17-05:00January 14, 2022||

Many mortgage firms must borrow funds on a short-term basis in order to originate loans that are to be sold later in the secondary mortgage market or to investors. When the prime rate of interest [...]

Verification of Deposit (VOD)

2022-01-14T00:45:52-05:00January 14, 2022||

A document signed by the borrower’s financial institution verifying the status and balance of that person’s financial accounts.

VA Mortgage Funding Fee

2022-01-14T00:45:33-05:00January 14, 2022||

A premium of up to 1.5 percent (depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either [...]

VA Loan

2022-01-14T00:45:18-05:00January 14, 2022||

A long-term, low- or no- down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.

Usury

2022-01-14T00:44:51-05:00January 14, 2022||

Interest charged in excess of the legal rate established by law.

Underwriting

2022-01-14T00:44:36-05:00January 14, 2022||

The process of evaluating a loan application to determine if it meets the lender’s standards.

Two-Step Mortgage

2022-01-14T00:44:09-05:00January 14, 2022||

A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market [...]

Truth In Lending Act

2022-01-14T00:43:57-05:00January 14, 2022||

A federal law requiring disclosure of the annual percentage rate to homebuyers shortly after they apply for the loan. Also known as Regulation Z.

Total Expense Ratio

2022-01-14T00:43:45-05:00January 14, 2022||

Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

Title Search:

2022-01-14T00:43:33-05:00January 14, 2022||

An examination of public records to determine the legal ownership of property. Usually the records are recorded with the County Recorders office. The search is usually performed by a title company using computerized records.

Title Insurance

2022-01-14T00:43:20-05:00January 14, 2022||

Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.

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