Glossary
 
 
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r
rate cap
A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.

rate lock-in
A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.

rebate
Compensation received from a wholesale lender which can be used to cover closing costs or as a refund to the borrower. Loans with rebates often carry higher interest rates than loans with "points" (see above).

refinancing
The process of paying off one loan with the proceeds from a new loan using the same property as security.

residential mortgage credit report (RMCR)

A report requested by your lender that utilizes information from at least two of the three national credit bureaus and information provided on your loan application.

revolving debt
A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due. (i.e. your Visa, Master Card, American Express, Discover cards + all of your depar
tment store credit cards.)
s
seller carry back
An agreement in which the owner of a property provides financing, often in combination with an assumed mortgage.

survey
A print showing the measurements of the boundaries of a parcel of land, together with the location of all improvements on the
l
and and sometimes its area and topography.

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t
tenants-in-common
An undivided interest in property taken by two or more persons. The interest need not be equal. Upon death of one or more persons, there is no right of survivorship.

title
The evidence one has of right to possession of land.

title insurance
Insurance against loss resulting from defects of title to a specifically described parcel of real property.

title search
An investigation into the history of ownership of a property to check for liens, unpaid claims, restrictions or problems, to prove that the seller can transfer free and clear ownership.

total debt ratio
Monthly debt and housing payments divided by gross monthly income. Also known as Obligations-to-Income Ratio or Back-End Ratio.

Truth-in-Lending Act
A federal law requiring a disclosure of credit terms using a standard format. This is intended to facilitate comparisons between the lending terms of different financial institutions.


v
Veterans Administration (VA)
A government agency guaranteeing mortgage loans with no down payment to qualified veterans.

VA Loans(Veteran Affairs)
Millions of military veterans and service personnel are eligible for VA financing each year. Even if you have already used VA loan benefits in the past, you may be able to use remaining or restored loan entitlement to buy another home. This is an excellent service benefit because it requires zero down payment in most cases. VA buyers may also have all of their closing costs paid by the seller. Loans generally may not exceed $203,000.

Who Qualifies?
Veterans and service personnel with active duty service, that was not dishonorable.
Members of the Selected Reserve, including the National Guard, are eligible until October 28,1999 when the expansion clause expires. (reservists will pay a slightly higher funding fee.)

VA Loans can be used to purchase a home, build a home, improve a home, or refinance a home.
Contact your VA regional office personnel for complete eligibility requirements.

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