Terms with Category Mortgages

  • Home Equity Loan (HEL) Bank, Very Important,
    • A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
    Also known as an Equity Take Out (ETO).
  • Home Inspector Definition,
    • A person who has a broad general knowledge relating to basic home construction, common household problems and methods for their correction.
  • Home Loan Bank,
    • A loan used to buy a home is referred to as a "mortgage."
  • Housing-equity Partnership Bank,
    • An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
  • Hybrid Mortgage Definition,
    • A mortgage split into different components in order to better manage risks and costs.
  • Income Approach Bank,
    • A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
  • 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.
  • Initial Interest Rate Definition,
    • The introductory interest rate on an adjustable-rate mortgage (ARM), which usually changes at a predetermined time.
  • Instalment Bank,
    • The regular periodic payment that a borrower agrees to make the lender.
  • Interest (IN, int) Bank,
    • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
    Bank account transaction code.
  • Interest Adjustment Date Bank,
    • The date one month prior to the beginning of amortization when accrued interest computed on the monies advanced becomes due.
  • Interest Factor Bank,
    • The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in a basic year times the number of days accrued.
  • Interest Only Payments Bank,
    • A payment plan where only the interest is paid off.
  • Interest Rate (IR) Bank, Very Important,
    • The rate a lender charges an individual to borrow money.
  • Interest Rate Cap Definition,
    • A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.
  • Interest Rate Differential (IRD) Bank, Very Important,
    • The penalty one pays for breaking a mortgage.
  • Interim Financing Bank,
    • The availability of funds on a daily basis to assist a developer with financing for a construction project between advances made by the lender of the construction loan.
  • International Organization for Standardization (ISO) Company Est. 1946, Geneva, Switzerland,
    • An international organization created to promote standardization around the world.
  • Investment Property Bank,
    • Property bought with the hope of it making money.
  • Joint Credit Bank,
    • Credit that is issued to two people based their credit reports and their combined assets and incomes. The repayment of joint credit is the responsibility of both parties.
  • Joint Liability Bank,
    • The responsibility of two or more people to repay a debt
  • Junior Mortgage Definition,
    • A loan that is subsequent to the claims of the holder of a prior (senior) mortgage.
  • Kicker Bank,
    • Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.
  • Laddering Bank,
    • Staggering deposits into investments such as CDs in order to vary and better the rate of return.
  • Land Draw Definition,
    • A construction loan backed by the value of the land.
  • Land Transfer Tax (LTT) Acronym,
    • A provincial tax payable on any property that changes hands. First time buyers may be eligible for a rebate.
  • Late Charge Bank,
    • A fee imposed on a borrower for not paying on time
  • Late Payment Bank,
    • A sum a borrower sends to a lender that is received past the date when it was due.
  • Lead Lender Bank,
    • A financial institution which heads up a financial consortium or syndicate to provide funds for a mortgage.
  • Leasehold Mortgage Definition, Important,
    • A mortgage given by a lessee on the security of his leasehold interests in the land.
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