Line of Credit: An agreement whereby a financial institution promises to lend up to a certain amount without the need to file another application.

Lock-in: A written agreement in which the lender guarantees a specified loan program interest rate and points if a mortgage goes to closing within a set period of time.

Lock-in Period: The time period during which the lender has guaranteed an interest rate to a borrower.

Mortgage: A legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Banker : A company that originates, sells and services mortgages exclusively for resale in the secondary mortgage market.

Quitclaim Deed : A deed that transfers, without warranty of ownership, whatever interest or title a grantor may have at the time the conveyance is made.

Recission: The act of cancellation or annulment of a transaction or contract by the operation of a law. Borrowers usually have the option to cancel certain credit transactions, including a refinance or home equity transaction, within three business days after consummation (when the consumer becomes contractually obligated by, for example, signing the loan documents).

Refinance Transaction : The process of paying off one loan with the procees from a new loan, typically using the same property as security for the new loan.

Second Mortgage : A subordinated lien created by a mortgage laon, over the amount of the first mortgage. Second mortgages are used to reduce the amount of a cash down payment or in refinancing to raise cash.

Title: A legal document evidencing a person's right to or ownership of a property.

Title Company: A company that specializes in examining and insuring titles to real estate.

<Back