Terms with Category Mortgages

  • Principal Bank,
    • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • Principal and Interest (P&I, PI) Bank,
    • Acronym for the elements of a mortgage payment: principal and interest.
  • Principal, Interest and Taxes (PIT) Bank, Important,
    • Principal, interest and taxes. The components of a monthly mortgage payment.
  • Principal, Interest, Taxes, and Insurance (PITI) Bank,
    • Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
  • Private Lender Bank,
    • A lender not associated with a traditional lender.
  • Property Tax Definition,
    • A levy by a city on real estate and personal property whose amount varies depending on the property's value.
  • Province of Domicile Bank,
    • The province where an individual lives or intends to live permanently or for a long term, regardless of the individual's current location.
  • Qualifying Rate Bank,
    • The mortgage rate that one must qualify for when applying for a variable rate or a term less than 5 years, so that if rates increase, the borrower can continue to make payments.
  • Qualifying Ratios Bank,
    • As calculated by lenders, the percentage of income that is spent on housing debt and combined household debt. The first qualifying ratio, called the gross debt service or GDS is up to and including a maximum of 32% of the combined gross family income. The second qualifying ratio is the Total debt service or TDS is up to and including 40% of gross income.
  • Rate Bank,
    • Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
  • Rate Cap Bank,
    • A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.
  • Rate Hold Bank,
    • The length of time, typically between 60 and 120 days, that a lender will guarantee a loan's interest rate once you are locked in.
  • Rate Index Bank,
    • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.
  • Rate Lock-in Bank,
    • A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
  • Ratio Bank,
    • Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
  • Real Estate Attorney Definition,
    • A lawyer who specializes in the transfer of land and buildings and property tax issues.
  • Receivership Bank,
    • A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
  • Reconveyance Definition,
    • The transfer of title to the borrower after a mortgage has been paid fully.
  • Refinance Bank,
    • To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • Refinancing Definition,
    • The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.
  • Remaining Balance Bank,
    • Unpaid principal on a loan.
  • Remaining Term Bank,
    • The time it will take to pay off the rest of an instalment loan as scheduled.
  • Renewal Bank,
    • Signing on again with the same lender once a term is up.
  • Rent Bank,
    • When one party pays another for the use of an asset, service or property.
  • Rent-to-Own (RTO) Bank,
    • An agreement to purchase an asset after a series of rental payments.
  • Rental Property (RP) Bank, Important,
    • Property that is occupied by rent-paying tenants and not the owner.
  • Repayment Period Bank,
    • In a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
  • Repayment Plan Bank,
    • Modification of an existing loan after the borrower has been delinquent. Often used when the borrower misses payments but the lender does not foreclose.
  • Repossession Bank,
    • The taking back of property after a borrower has stopped making payments.
  • Resident Alien Definition,
    • A person who is a legal permanent resident, but not a citizen, of Canada.
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