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Jumbo Loan
Jumbo Loan
A jumbo or non-conforming loan is a loan made for an amount exceeding conforming loan limits, ...
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Mortgage Laws and Standards
Mortgage Laws and Standards
The various federal and state laws and regulations, along with the ethical standards established by industry associ...
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Loan Applications
There are many reasons why an individual may want to apply for a mortgage loan. One reason is to refinance the property. Another and more common reason is to purchase a property.
In a typical real estate purchase transaction, prior to maki...
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Preparing a Loan Package
Preparing a Loan Package
Loan processing is when the mortgage loan application and accompanying documentation is packaged togethe...
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Underwriting
Underwriting
Underwriting is the process of evaluating a loan application to determine the risk to the lender if the lender grant...
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Real Estate Settlement Procedures Act (RESPA)
Real Estate Settlement Procedures Act (RESPA)
The United States Congress enacted the federal Real Estate Settlement Procedures Act in 1974, mor...
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The SAFE Act
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), Section 1503 defines a loan originator as "an individual who (I) takes a residential mortgage loan application; and (II) offers or negotiates terms o...
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Package Mortgage
Package Mortgage
A package mortgage is a loan secured by both real and personal property. Package mortgages are used in situations where person...
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Wrap Around Encumbrance
Wrap Around Encumbrance
A wrap around encumbrance may be either a wrap around mortgage, an all-inclusive deed of trust, or a...
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Reverse Equity Mortgage
Reverse Equity Mortgage
A reverse mortgage is a loan for homeowners age 62 and older that use a portion of the home's equity...
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Refinance
Refinance
A refinance is replacing one loan with another. Refinancing is generally done to obtain a lower interest rate, to ...
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Open-End Mortgage
Open-End Mortgage
An open-end mortgage has a maximum loan amount, but allows the borrower to keep re-borrowing any part of t...
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Junior Loan
Junior Loan
A junior loan is any loan recorded after a senior loan. The time and date of recording determines a loan's prior...
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Junior Loan
Junior Loan
A junior loan is any loan recorded after a senior loan. The time and date of recording determines a loan's prior...
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My Files
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First Mortgage
First Mortgage
A first mortgage is mortgage that has priority over all other mortgages filed against the same property. This...
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Construction Loan
Construction Loan
A construction loan is used to finance construction. It is a short-term loan designed to be replaced with ...
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Budget Mortgage
Budget Mortgage
A budget mortgage requires 1/12th of the property taxes and insurance premiums each month, in addition to th...
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Bridge Loan
Bridge Loan
A bridge loan is used by borrowers who need to borrow against the equity of an owned property in order to purcha...
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Blanket Encumbrance
Blanket Encumbrance
A blanket loan, or blanket mortgage, is a type of loan that covers (i.e., blankets) more than one piece of real property. B...
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Balloon Mortgage
Balloon Mortgage
A balloon mortgage is a loan with periodic payments and a large final payment at the end of the term. The large payment is cal...
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Adjustable Rate Mortgage (ARM)
Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage (ARM) is a mortgage with interest rate changes that occur during ...
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Seller Financing
Seller Financing
Occasionally, real estate transactions do not involve a lender and only involve the seller and the buyer. In cases where the b...
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The Trust Deed
The Trust Deed
Trust deeds are the preferred security instrument of lenders. Trust deeds are also referred to frequently as a Deed of ...
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The Mortgage Loan
The Mortgage
Historically, the most commonly used real property security instrument was the mortgage. The parties to a mortgage are:
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Promissory Note
The Promissory Note
A promissory note is a negotiable instrument. All negotiable instruments must contain these four element...
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FHA Requirements
Mortgage Insurance (MIP) for FHA Insured Loan
Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual ...
