financing and settlement, real estate vocab

A mortgage loan without any type of government insurance or guarantee, the lender may be protected by PMI

• non-conventional loan

• Conventional loan

• conforming loan

• Note

Federally backed mortgage loan with special features (insurances, guarantees, and relaxed lending guidelines) to encourage and enable more buyers to purchase a home (FHA, VA, USDA)

• non-conventional loan

• conforming loan

• conventional loan

• Non-conforming loan

standardized loan that meets the purchase requirement of the secondary mortgage market

• non-conforming loan

• conforming loan

• conventional loan

• non-conventional loan

a residential loan that does not meet the requirements of the secondary mortgage market

• non-conventional loan

• conventional loan

• conforming loan

• non-conforming loan

instrument for the debt, the personal promise to pay

• PITI

• note

• equity

• non-conforming loan

a document used to pledge real property as security for the debt

• mortgage

• equity

• note

• PITI

typically 28% for conventional loans, the amount of monthly gross income can be used for PITI payment

• front ratio

• back ratio

• equity

• mortgage

typically 36% for conventional loans, the amount of monthly gross income that can be used for all consumer debt including the PITI

• note

• front ratio

• back ratio

• PITI

the amount of cash that an owner has in their property (market value - debt)

• equity

• note

• PITI

• equiality

Loan to value ratio, loan amount as a percent of either the price or the appraised value, which ever is lower

• PITI

• LTV

• LOW

• equity