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When a lender agrees to bind themselves to a specific interest rate on a mortgage loan
Prior to requesting a rate lock, a quoted interest rate may change due to market fluctuations. The rules on how to lock in a rate will vary from lender to lender and broker to broker, but typically you can request a rate lock after you submit your signed loan application (1003) and other requested forms. Rate lock is also called lock-in rate.
See: Lock period
Land and anything permanently attached to it
Real property cannot be moved or taken away without lawful permission. If you want to give or sell someone real property, you must use a deed.
Compare: Personal property
A credit towards non-recurring closing costs in exchange for a higher interest rate on your loan
Each rebate point is equal to one percent of the loan amount. Each rebate point will generally increase your interest rate by about .25% but will fluctuate based on varying factors. It is not possible to get cash back on rebate points. Rebate points do not cover your prepaid interest, hazard insurance, mortgage insurance (MI) and impounds.
See: Point, Closing costs
Compare: Discount point
To make a document available to the public
Your home’s purchase is official the moment that you record the deed at the county courthouse. Usually, the title company or escrow agent will be responsible for recording the deed for a small fee. To find the former owners of your home, visit the county clerk’s office and check the files - this list of owners is called the chain of title. Any claims on your home are also recorded there. The county clerk who records a deed may also be called the county recorder or the registrar of deeds.
See: Title search, Lien
When a home owner redoes their current mortgage
Refinancing your mortgage to a lower rate can save you a considerable amount of money. Refinancing may make sense when market interest rates drop 1 or more percentage points lower than your present rate. Also, consider how long you need to stay in your home to break even on the costs to refinance. To refinance, fill out a standard loan application, await an approval on the loan, and pay closing costs, such as the appraisal and processing fee.
See: Closing costs
Compare: Cash-out refinance
The total amount left for a borrower to pay on a loan at any given time
Compare: Principal balance
The amount of time until a loan is completely paid off
If you are in your fifth year of paying off a 30-year loan, the remaining term is 25 years.
Payment in exchange for the temporary use of property
Paying rent on a property does not give you equity in the property because you are not buying the property. The owner of the property is called a landlord and the renter is called a tenant. The rent is mutually agreed upon by both the landlord and the tenant, and is written into a rental agreement or lease.
Residential loan application form (1003)
The name of the standard loan application that lenders require a borrower to complete when applying for a loan
A loan against the equity in a paid off property
Reverse mortgages are common among older home owners who for some reason need money but do not wish to sell their homes. You can either receive a lump-sum loan, a line of credit or a monthly check based on the amount of equity in your home. This money is tax-free, since it is a loan. When you sell your home, you use your home’s equity to pay off the loan and interest. Closing costs, such as loan origination and processing fees, are also included in a reverse mortgage.
A credit line that is restored as the borrower pays off what’s owed
Credit cards and home equity credit lines have revolving credit.