One of two different types of limits for adjustable-rate mortgages. The "life cap" limits the highest or lowest interest rate that is allowed over the entire life of the mortgage. The "periodic cap" limits the amount that an interest rate can change in one adjustment period.
A net yield set by an investor to determine the value of an income producing property.
Line items on a profit and loss statement that would not be expensed on an annual basis. This category would include replacement of major building systems, such as roofs, driveways, etc.
A method used to estimate the value of a property based on the rate of return on investment.
The meeting between the buyer, seller and lender (or their agents) where the property and funds legally change hands. Also referred to as settlement.
The cost and fees associated with the official change in ownership of the property and with obtaining the mortgage, which are assessed at the closing or settlement.
Direct link to an institutional lending source.
An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.
The financial intermediary that sponsors the conduit between the lender(s) originating loans and the ultimate investor. The conduit makes or purchases loans from third party correspondents under standardized terms, underwriting and documents and then, when sufficient volume has been obtained, pools the loans for sale to investors in the CBMS markets.
Someone who is willing to sign mortgage loan obligation with you in case you default on your monthly payments. Normally, the cosigner is required to go through the same application and approval process as the original signer of the loan.
A lending organization that obtains it source of funds from the commercial market.
A loan to provide improvements to the property.
A search through your existing credit history by a qualified credit bureau to determine if, and the number of times, you may have been delinquent making monthly payments on previous debts. Even when a credit report is for the most part positive, many lenders require written explanation for any negative comments within the credit report. This type of report is usually required to obtain a mortgage loan.