Finance Real Estate

Mortgagee

• Lender

• Borrower

• Principal

• Seller

Mortgagor

• Lender

• Borrower

• Principal

• Sellier

Contract for deed

• Seller financing when owner retains title

• The parties don’t reserve it

• Foreclosure

Subordinate instruments

• Tittle retention

• A loan that takes a lower lien position that another mortgage loan

• Lifting clause

Lifting clause

• A clause that gives the borrower the ability to replace the primary instrument with another

• Banking options

Prepayment penalty

• A penalty charged by the lender to the borrower if the borrower pays the loan off early

• VA FHA and loans purchased by Fannie Mae have no payment penalty

• An instrument used to create a mortgage

• A real property

Alienation clause

• Found in a mortgage

• Lifting clause

• Prepayment clause

• Also called Due on sale clause

Escalation clause

• Regular lender of a mortgage

• Alllows the lender to raise a loan’s existing interest rate

• A get rich quick scheme using multiples loan application

• Usually found in a adjustable Rate Morgatge ARM

Conventional loans

• Loans made with real estate as security and not involving government participation in the form of insuring of guaranteeing the loan

• The percent of the loan based on the loan amount

• One percent of the loan amount paid as an origination submitted to various lenders

Government loans

• Wells Fargo and chase

• FHA and VA

• FGA

• USDA