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Laura Chang
MBA, REALTOR®
MBA, REALTOR®
Lien
A legal claim upon a piece of property for the payment or the satisfaction of a debt or obligation.
Lifetime Rate Cap
A limit on how much the variable interest rate can increase during the term of an adjustable rate mortgage.
Listing
A piece of property placed on the market by the listing agent.
Loan-to-Value Ratio (LTV)
The ratio between the unpaid principal amount of the loan, or a borrower’s credit limit in the case of a line of credit, and the appraised value of the borrower’s collateral.
Expressed as a percentage.
Lock-in Period
A lock-in period refers to the amount of time prior to closing that a borrower can secure an interest rate for the loan. Generally, lock-in periods range from 30 days to more
than 90 days. Generally, the longer the lock-in period, the more a borrower pays in points or interest.
Market Value
The highest price a buyer will pay and the lowest price a seller will accept on a property.
Mobile Home
A type of residence that's built upon a wheeled chassis that can be transported from site to site.
Mortgage
A legal document giving a lender a lien on real estate to secure repayment of a loan. Also called deed of trust and/or security deed.
Mortgage Insurance
Insurance that protects the lender if a borrower defaults on his or her loan. This insurance usually costs from 0.15 percent to 2.5 percent of the loan amount. If the down
payment is less than 20 percent, most lenders will require the borrower to get mortgage insurance. Also called private mortgage insurance (PMI).
Mortgagee
The lender
Mortgagor
The borrower or the homeowner
Multiple Listing Service (MLS)
The service that combines the listings of all available homes in an area, except for For-Sale-by-Owner properties, in one directory or database.
Negative Amortization
The result when monthly payments do not cover all the interest due on the loan. The unpaid interest is added to the unpaid balance, which means the homebuyer will owe
increasingly more than the original amount of the loan.
Net Listing
A listing agreement in which the broker’s commission consists of the amount above a net price set by the owner. If the net price is not met, a commission is not earned.
Note
A written agreement in which the signer promises to pay to a named person or company a specific sum of money at a specified date or on demand.
Open Listing
A property marketed by more than one agent at a time.
Origination Fee
A fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned (often 1%).
PITI
An acronym for principal, interest, taxes and insurance. Also referred to as the monthly housing expense.
Points
Each point is equal to 1 percent of the loan amount. Points, if charged, are usually collected at settlement with all other closing costs. Negative points reflect the amount that
will be credited to a borrower and reduce the amount of closing costs a borrower will pay. Also referred to as discount points.
Prepaid Expenses
The expenses that are usually paid in advance, such as escrows for taxes and insurance, which are paid at closing.
Prepayment penalty
A penalty assessed by some lenders if a loan is paid off early. This is a lump-sum amount due and payable in addition to the loan balance, and is usually limited to the
early years of a mortgage. Not all loans have prepayment penalties.
Primary residence
This is the home in which a borrower resides most of the time.
Principal
The amount borrowed or still owed.
A legal claim upon a piece of property for the payment or the satisfaction of a debt or obligation.
Lifetime Rate Cap
A limit on how much the variable interest rate can increase during the term of an adjustable rate mortgage.
Listing
A piece of property placed on the market by the listing agent.
Loan-to-Value Ratio (LTV)
The ratio between the unpaid principal amount of the loan, or a borrower’s credit limit in the case of a line of credit, and the appraised value of the borrower’s collateral.
Expressed as a percentage.
Lock-in Period
A lock-in period refers to the amount of time prior to closing that a borrower can secure an interest rate for the loan. Generally, lock-in periods range from 30 days to more
than 90 days. Generally, the longer the lock-in period, the more a borrower pays in points or interest.
Market Value
The highest price a buyer will pay and the lowest price a seller will accept on a property.
Mobile Home
A type of residence that's built upon a wheeled chassis that can be transported from site to site.
Mortgage
A legal document giving a lender a lien on real estate to secure repayment of a loan. Also called deed of trust and/or security deed.
Mortgage Insurance
Insurance that protects the lender if a borrower defaults on his or her loan. This insurance usually costs from 0.15 percent to 2.5 percent of the loan amount. If the down
payment is less than 20 percent, most lenders will require the borrower to get mortgage insurance. Also called private mortgage insurance (PMI).
Mortgagee
The lender
Mortgagor
The borrower or the homeowner
Multiple Listing Service (MLS)
The service that combines the listings of all available homes in an area, except for For-Sale-by-Owner properties, in one directory or database.
Negative Amortization
The result when monthly payments do not cover all the interest due on the loan. The unpaid interest is added to the unpaid balance, which means the homebuyer will owe
increasingly more than the original amount of the loan.
Net Listing
A listing agreement in which the broker’s commission consists of the amount above a net price set by the owner. If the net price is not met, a commission is not earned.
Note
A written agreement in which the signer promises to pay to a named person or company a specific sum of money at a specified date or on demand.
Open Listing
A property marketed by more than one agent at a time.
Origination Fee
A fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned (often 1%).
PITI
An acronym for principal, interest, taxes and insurance. Also referred to as the monthly housing expense.
Points
Each point is equal to 1 percent of the loan amount. Points, if charged, are usually collected at settlement with all other closing costs. Negative points reflect the amount that
will be credited to a borrower and reduce the amount of closing costs a borrower will pay. Also referred to as discount points.
Prepaid Expenses
The expenses that are usually paid in advance, such as escrows for taxes and insurance, which are paid at closing.
Prepayment penalty
A penalty assessed by some lenders if a loan is paid off early. This is a lump-sum amount due and payable in addition to the loan balance, and is usually limited to the
early years of a mortgage. Not all loans have prepayment penalties.
Primary residence
This is the home in which a borrower resides most of the time.
Principal
The amount borrowed or still owed.
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