Mortgage Glossary

Find mortgage terms, a list of mortgage definitions that will help you learn about the different types of mortgages there are and the mortgage lending process.

Mortgage definitions
Read mortgage definitions to learn about mortgages and other related terms. The mortgage world can be a scary place if you don't know the language. Read these mortgage definitions so when you talk to a mortgage broker you will understand what they are talking about.

Mortgage glossary
A mortgage glossary has been made available to you so you can find out what an adjustable rate mortgage is and how it compares to a fixed rate mortgage. Other terms you might read about are mortgage insurance and combined loan to value.

Mortgage terms
There is a list of mortgage terms on this page that include mortgage insurance, mortgage refinance, mortgage refinancing, fixed-rate mortgage, ARM or Adjustable Rate Mortgage and many others. Enjoy your reading.

Adjustable rate mortgage
An adjustable rate mortgage is a mortgage that will fluctuate with the ebbs and flows of the federal mortgage rate.
An adjustable rate mortgage may start off with the lowest mortgage rate, but may end up at a higher mortgage interest rate.

2nd mortgage rate
Find the current mortgage rate for second mortgages. You home mortgage rate can vary depending on your situation. Your second mortgage rate might be different from your first mortgage rate.

Best mortgage rate
A mortgage broker may help you find the best mortgage rate. The mortgage broker's job is to search different mortgage lending companies to find a low mortgage rate. The mortgage broker will provide you with different mortgage options such as a fixed mortgage rate and an adjustable mortgage rate. He or she will also ask you if you are refinancing. If you are refinancing, they will use a mortgage rate calculator to find you the refinance mortgage rate. A mortgage refinancing rate should not be much different from a fixed mortgage rate.

Mortgagerates
You can still find low mortgagerates, whether you are looking for adjustable mortgagerates or fixed mortgagerates. Find the lowest mortgage rate will benefit you in the long run. With a lower mortgage rate, you will be able to afford a bigger mortgage when you refinance and you will save money in mortgage payments over the course of the loan. Your mortgage interest payments will be less also. Use the mortgage calculator to find out how much you can afford when refinancing your mortgage rate.

Mortgage Terms

Adjustable Rate Mortgage (ARM)
Amortization
Fixed-Rate Mortgage (FRM)
Fannie Mae - Federal National Mortgage Association.
Fair Isaac (FICO) - A score representing the credit risk of a comsumer based on credit history. It is computed using data from a credit report using a patented set of risk analysis algorithims developed by Fair Issac Corporation. A FICO score of 600 would be similar to a "C" in public school grading.
FHLB Advances - Funding provided by Federal Home Loan Banks.
Freddie Mac - Federal Home Loan Mortgage Corporation.
Government Sponsored Entity (GSE) - Private organizations with government charters whose function is to provide liquidity for the residential loan market. GSEs purchase loans from lenders and assume risk for the asset, thereby protecting the investors in the MBS.
Home Equity Line of Credit (HELOC)
Homeowners Insurance - Package policy that combines (1) coverage against the insured’s property being destroyed or damaged and (2) coverage for liability exposure of the insured.
Jumbo mortgages - Loans with high risk of default ab initio.
Loan to value (LTV) - Loan Amount / Value of property.
Combined loan to value (CLTV). All loans outstanding (i.e. 1st & 2nd) / Value of property.
No Income, No Asset (NINA)
Stated Income, Stated Asset (SISA) Neither income nor assets are verified.
Stated Income, Verified Asset (SIVA) Income is not verified but assets require documentation.
No Documentation (No Doc) Income or assets are not stated. Typically requires a low LTV and higher credit scores.
Manufactured housing (MH)
Mortgage Insurance (MI)
Mortgage Servicing Rights Mortgage Service Rights (MSR) - The capitalized asset that represents the value of the servicing fees to be realized over the life of the loan. (See also yield to maturity)
Pooling - The process of grouping together mortgage loans with similar characteristics.
Quitclaim deed (QCD)
Real estate appraisal
Second mortgage Additional loan that is subordinate to the primary mortgage
Securitization - The process of pooling loans into mortgage-backed securities for sale into the secondary mortgage market.
Verification of employment (VOE)