Mortgage

Mortgage

The business of lending money for the purchase of real property which is repayed in security interest.

Contributors in Mortgage

Mortgage

Discount points are charges paid to the lender voluntarily, usually at closing by the borrower or seller, to reduce the interest rate. One point is equal to 1 percent of the principal amount of the ...

discounted loan

Banking; Mortgage

When the interest rate on a loan is less than the market rate, it is a discounted loan. However, the lender requires additional discount points to raise the yield or return on the loan to the market ...

down payment

Banking; Mortgage

Money paid to make up the difference between the purchase price and the mortgage amount.

earnest money

Banking; Mortgage

Funds delivered to the seller or an escrow agency by the purchaser with the purchase agreement as evidence of good faith.

encroachment

Banking; Mortgage

An improvement that illegally violates another's property or right to use that property.

encumbrance

Banking; Mortgage

Anything that affects or limits the fee simple title to property, such as mortgages, liens, leases, easements, or restrictions.

escrow account

Banking; Mortgage

The person or organization having a responsibility to both the buyer and seller (or lender and borrower) to see that the terms of the purchase/sale (or loan) are carried out. Also called escrow ...