Dax Dickson's (thecommercialfinancestore) Blog

JJumbo LoanA loan which is larger (more than $240,000 as of 1/1/99) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.  I don't know...

JJumbo LoanA loan which is larger (more than $240,000 as of 1/1/99) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

IImpoundThat portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves. IndexA published interest rate against which lenders measure the difference betw...

HHazard InsuranceA form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.Housing Expenses-to-Income RatioThe ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross ...

GGinnie Maesee Government National Mortgage Association. Government National Mortgage Association (GNMA)Also known as "Ginnie Mae," provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA. Graduated Payment Mortgage (GPM) A type of flexible-payment mortgage where t...

FFannie Maesee Federal National Mortgage Association. Farmers Home Administration (FmHA)Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere. Federal Home Loan Bank Board (FHLBB) The former name for the regulatory and supervisory agency for federall...

EEarnest MoneyMoney given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment. EntitlementThe VA home loan benefit is called an entitlement (i.e. entitlement for a VA guaranteed home loan). This is also known as eligibility. Equal Credit Opportunity Act (E...

DDebt-to-Income RatioThe ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio. Deed of trustIn many states, this document is used in place of a mortgage t...

CCash FlowThe amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc.).Caps (interest)Consumer safeguards which limit the amoun...

BBalloon Mortgage A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon p...