Mortgage Terminology

3. A signed document that is evidence of somebody's legal right to property. A new deed is used for each transfer. The deed contains accurate description information of the property, location, and legal description.
8. Lender holding priority over the claims of subsequent lenders.
9. A general term to describe who funds the loan.
10. Insurance coverage placed on a property by the Lender when the borrower fails to insure the property or provide proof the property is insured. Once in place, the coverage only insures the outer structure of the home. The cost and coverage is not comparable to a personal insurance policy.
13. An expert (appraiser's) opinion of the value of properly at a given time, based on facts regarding the location, improvements of the property surroundings, etc. Usually less than the Market Value.
14. The portion of a monthly payment held by the third party to pay escrowed items (taxes and insurance) as they become due.
15. The price at which a house will sell, within a reasonable period of time, based on the like surrounding tied to a loan.

1. A person who assists the borrower through the loan, processing and closing of a mortgage loan.
2. A unique description of a property that is used on all legal documents.
4. There are three components that make up a mortgage payment(Principal, Interest, and Escrow).
5. Liability coverage that can protect against damage caused by fire, flood and similar risks.
6. The borrower of money.
7. Insurance required for a mortgage loan in case of disaster.
8. A proceeding in or out of court to extinguish all rights, title and interest of the property.
11. Agreement between the financial institution and the borrower. The agreement states the borrower will consolidate his/her property expenses such as loan payment, property taxes and insurance premium into 12 annual payments to the financial institution.
12. The function of collecting payments, managing taxes and escrow, foreclosing and all general function tied to a loan.
14. The market value of the property less the homeowners unpaid mortgage balance and any outstanding liens or other debts against the property.
15. A lien or claim against real property given as security for a loan.