Term
GEM
Growth Equity Mortgage |
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Definition
| fixed rate mortgage set up like a 30 year conventional loan, but payments increase regularly |
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Term
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Definition
| (alternative document loans) loans that hold borrower with good credit to different documentation standards than traditional loans |
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Term
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Definition
| for borrowers who have had credit record blemishes, such as being 30 days late 1 or 2 times over the past year, limited funds for a down payment, high debt to income ratio, or a record of bankruptcy and/or foreclosure. These are riskier than prime mortgages, but not as risky as subprime mortgages. The approval can be ontained thorugh AUS. Since the loan is riskier, the interest rate will be higher |
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Term
| fully indexed rate/adjustable interest rate |
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Definition
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Term
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Definition
| length of time between interest rate changes with ARMs |
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Term
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Definition
2 Digit Caps
2/6
(max points rate can increase) / (max points rate can increase in life of loan)
3 Digit Caps
5/2/6
(point at 1st rate adjustment) / (point for subsequent adjustement periods) / (point total over life of loan) |
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Term
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Definition
| gives the borrower the right to convert from an adjustable rate loan to a fixed rate loan |
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Term
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Definition
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Term
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Definition
| mortgaeg given by a lender to the seller for the purchase of real estate |
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Term
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Definition
one party agrees to take over payments of another party's debt, with terms of the note stayinh unchanged
(FHA & VA allow) |
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Term
| self-sponsored wraparound financing |
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Definition
| the seller offres the wraparound mortgage, retaining an exisiting loan on the property while giving the buyer a second loan |
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