The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans).
The written document conveying real property. Once recorded at the county recorder's office, the original piece of paper is not needed to convey title in the future.
A voluntary lien to secure a debt deeding the property to Trustees who may foreclose and sell the property at public auction, in the event of default on the Note the Deed of Trust secures. In many states, this document is used in place of a mortgage to secure the payment of a note.
When a note is written with a monthly payment that is less than required to satisfy interest accruing at the note rate, the unpaid interest is deferred by adding it to the loan balance.
Money paid to make up the difference between the purchase price and the mortgage amount. Down payments usually are 5 percent to 20 percent of the sales price on conventional loans.
A clause inserted in a mortgage that allows the lender to call the loan due and payable at its option upon the transfer of the property, also known as paragraph "17" in FNMA / FHLMC Mortgage.
