Greenberg Realty

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3651 S Columbia Road
Grand Forks, ND 58201
(701) 772-6641
(800) 884-5933
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Glossary of Terms

A mortgage loan in which the interest rate varies at specified intervals with changes in a specified index, and may result in a variable monthly payments. Interest rate on these loans are generally two to two and one half percent lower than the interest rates on a comparable fixed rate loan.
The process of reducing principal and interest by at specified intervals over a set term.
APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted. APR is intended to make it easier to compare lenders and loan options.
The act of estimating the monetary value of real property, personal property, or intangible property, usually performed as a service by someone recognized as an expert or certified by an organization or government agency.
A mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. A balloon or large payment due at a predetermined date.
The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred to the buyer.
It is common for a variety of costs associated with the transaction (above and beyond the price of the property itself) to be incurred by either the buyer or the seller. These costs are typically paid at the closing, and are known as closing costs.
Written offer from a lender to grant a mortgage loan. It outlines the terms, amount of loan, and the interest rate.
Non government issued mortgage loan. These can be fixed or variable rates and payments. And these loans cover a wide range of loan programs.
The percentage of a consumer's monthly gross income that goes toward paying debts. The total mortgage payment (principal & interest, taxes & insurance, etc.)
The deed is best known as the method of transferring title to real estate from one person to another.
A mortgage loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders.
Payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction to the seller.
A deposit towards the purchase of real estate made by a buyer to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.
Income total before deductions from taxes.
(ECOA) is a United States law that states that creditors must evaluate candidates based on credit worthiness only, not on factors that have nothing to do with their ability to repay the debt. The law applies to any creditor who regularly extends credit to consumers, including banks, retailers, bankcard companies, finance companies, and credit unions.
The value of an ownership interest in property.
Legal arrangement in which an asset (often money) is delivered to a third party to be held in trust pending a contingency or the fulfillment of a condition or conditions in a contract such as payment of a purchase price.
The act prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, religion, sex, handicap and family status.
A government sponsored enterprise (GSE) sponsored by the United States government. As a GSE, it is the largest privately-owned corporation authorized to make loans and loan guarantees.
Fee simple ownership represents absolute ownership of real property.
Any fee representing the cost of credit, or the cost of borrowing. It includes not only interest but other charges as well, such as transaction fees.
Mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float."
Denotes the specific insurance coverage against property loss from flooding.
The legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust".
Federal Home Loan Mortgage Corporation ("FHLMC") The FHLMC was created in 1970 to expand the secondary market for mortgages in the United States. Freddie Mac buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market.
This must be provided by a mortgage lender in the United States to a customer, as required by the Real Estate Settlement Procedures Act - or RESPA The estimate is of the fees due at closing and must be provided within three business days of applying for a loan.
Total monthly income before expenses are taken out.
Insurance that covers properties from the following; fire, wind, or other hazards.
A type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful for families to help finance major home repairs, medical bills or college education.
It requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving 1 to 4 unit and multifamily dwellings.
A loan in which for a set term the borrower pays only the interest on the principal balance, with the principal balance unchanged.
An ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord.
A form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.
A mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000/$150,000 or 87%.
A method of using property (real or personal) as security for the payment of a debt. The term mortgage refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage, the mortgage loan.
An origination fee is a fee for establishing a new loan. This fee is paid to the bank or your loan broker for his or her services in originating the loan.
An acronym for a mortgage payment that is the sum of monthly principal, interest, taxes, and insurance.
A point, sometimes also called a "discount point", is one of the important factors in the calculation of the annual percentage rate for a mortgage loan. One point is one percent of the loan amount.
(PMI) is insurance payable to a lender that may be required when taking out a mortgage loan. It is insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property.
A promissory note, also referred to as a note payable in accounting, is a contract detailing the terms of a promise by one party to pay a sum of money to the other. The obligation may arise from the repayment of a loan or from another form of debt.
A legal document by which a person releases or "quits" any claim that they may have had to property. Of the different types of deeds, the quit-claim has the least assurance that the person receiving it will actually get any rights.
The Act prohibits kickbacks between lenders and third-party settlement service agents in the real estate settlement process (Section 8 of RESPA), requires lenders to provide a good faith estimate for all the approximate costs of a particular loan and finally a HUD-1 at the closing of the real estate loan. The final HUD-1 allows the borrower to know specifically the costs of the loan and to whom the fees are being allotted.
(To rescind or set aside a contract) refers to the cancellation of the contract between the parties. This is done to gives a three business day period after closing to cancel and receive a refund of all fees in a refinancing of a loan.
A house which the purpose is one family's occupancy.
Simple interest does not take compounding into account, and is determined by multiplying the principal by the interest rate (per period) by the number of time periods.
The right to or ownership of land. The evidence of ownership of land.
Insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is available in many countries but it is principally a product developed and sold in the United States. It is meant to protect an owner's or lender's financial interest in real property against loss due to title defects, liens or other matters.
An action taken prior to the sale of real property to determine whether there are any liens or other encumbrances on the property which might prevent or delay the sale of the property.
United States federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs.
A mortgage loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders.
A type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you.

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