A few helpful definitions

Lender: This is the Mortgage Company that we are going to send the customers file to. (Wells Fargo, Countrywide, Principal, etc)

Mortgagee Clause: This is the Name and Address that the lender uses to protect their rights to the loan.

A thru D credit: credit considered to be less than perfect. Also known as "subprime", A thru D credit includes anything keeping a borrower from obtaining a Fannie Mae or Freddie Mac type loan.

Amortization Schedule: A schedule of payments designed to pay off a debt. IE: 30 year mortgage amortization where a borrower would make 360 equal consecutive monthly payments at the end of which the loan would be paid in full.

Annual Percentage Rate: Also known as APR. This is the cost of your credit in terms of an annual rate. The APR is normally higher than the interest rate due to closing costs and fees being included in the loan amount.

Appraised Value: The value assigned to a property by a licensed professional to assess its fair market value.

Cash Out Refinance: A type of loan where an existing loan is refinanced and the borrower is allowed to receive cash in addition to the amount of the home loan. The cash is considered part of the amount financed and is part of the lien against the property securing the loan.

Credit Report: A Report outlining an individual's credit history, public records and credit worthiness.

Equal Credit Opportunity Act: Federal Law aimed at protecting borrowers from being discriminated against based upon things such as ethnicity, sex, location of property and religious beliefs.

Foreclosure: Procedure whereby property pledges as security for a debt is sold to pay the debt in the event of default in payments or terms.

Housing Expense Ratio: Or debt to income ratio. This number is calculated by dividing all of borrower's monthly obligations by their monthly gross income.

Interest Rate: A charge for a loan usually a percentage for the amount loaned.

Loan to Value (LTV): The Loan to Value is the percentage of what is owed against the property vs. what the properties fair market value is.

Lock: A commitment from a lender to guarantee an interest rate for a borrower for a period of time. Rate locks expire after an agreed upon time.

Mortgagee: One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation, to a borrower.

No Cash Out Refinance: Also known as a "Rate and Term" refinance, this is a loan in which a lender simply refinances the existing first mortgage and no other bills are paid off. These type loans are normally done to reduce the interest rate and/or lower the monthly payment.

Point(s): A point equals one percent of the mortgage loan amount. If you were charged 1 point on a $100,000 loan you would pay $1000.

Term: The agreed to amount of time for repayment of a loan.

Trustee: One who holds property in trust for another to secure the performance of an obligation.