Glossary

Here you can find detailed descriptions on the most important terms regarding our services:

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Graduated Payment Mortgage

A type of stepped-payment loan in which the borrower's payments are initially lower than those on a comparable level-rate mortgage. The payments gradually increase over a predetermined period (usually 3, 5, or 7 years), and then are fixed at a level-pay schedule, which will be higher than the level-pay amortization of a level-pay mortgage originated at the same time. The difference between what the borrower actually pays and the amount required to fully amortize the mortgage is added to the unpaid principal balance.

Mortgage Rate

The interest rate on a mortgage loan.

Self-amortizing Mortgage

Mortgage whose entire principal is paid off in a specified period of time with regular interest and principal payments.

Rent Control

Municipal regulation restricting the amount of rent that a building owner can charge.

Home Equity

The difference of present market value of a house and outstanding loan balance of a mortgagor.

Private Mortgage Insurance

Policy protecting the holder against loss resulting from default on a mortgage loan.