Cash Advance Terms

•Amortization-  The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.
•APR – The cost of a loan stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee
•Bond – An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.
•Cap – A provision of an adjustable-rate mortgage  that limits how much the interest rate or mortgage payments may increase or decrease, There are typically initial, periodic and lifetime cap’s on a loan, refer to the note for clarification.
•Finance Charge – The cost of interest and other charges involved in borrowing money.
•Fixed Rate – Legal agreement between the borrower and lender that the rate of interest is fixed on the specificied loan amount.
•Foreclosure – Forefiture of a property bank to the lender for failing to make payments.
•Good Faith Estimate – Estimate of costs and fees for a borrower on a loan.
•Index – The economic index is an agreed upon index used to determine your interest rate (libor, prime, etc).
•Interest – The amount paid for the use of money, usually expressed as an annual percentage.
•Interest Rate – The interest charged by a lender for the use of money, expressed as a percentage. •Jumbo Loan ~ A loan with a dollar amount that exceeds the statutory size limit purchase by Fannie Mae or Freddie Mac, presently $ 417,000
•LIBOR (London Inter Bank Offer Rate) ~ An interest rate charged among banks in London for short-term loans denominated in a specific currency. A common index for debt securities.
•Lien – A monetary claim against your property. Usually liens must be settled before the seller can take title.
•Line of Credit – Type of loan in which the borrower may draw on funds at any time, up to an established maximum limit; the borrower may borrow, repay, and borrow again, any and all of the credit extended; a revolving loan.
•Margin – Percentage added to the index by the lender to determine the interest rate.
•Maturity Date – The date that a loan is due in full.
•Note – A signed document often referred to as a promisory note, whereas a borrower agrees to repay a lender based on specific terms.
•Prime Rate – The most favorable interest rate charged by a commercial bank for short term loans; a benchmark from which a bank computes an appropriate rate of interest for a loan contract.
•Principal – The balance on the loan amount, excluding interest.
•Rate Adjustment Period –  With most ARMs, any periodic adjustment in the interest rate changes the payment. Adjustment periods tend to reflect the period of the index of the most popular ARMs.
•Rate Cap – Consumer safeguards that protect the interest rate during the application and processing period.
•Refinance – The repayment of a debt from the proceeds of a new loan using the same property as security, most common in mortgages, business, comercial and vehicle loans.
•Term – The period of time during which a loan is repaid.
•Title – The right to ownership in real estate or with a vehicle which is recorded with a local government entity.

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