Learning Center

Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Acceleration Clause:
A clause in a mortgage that allows the lender to collect immediate payment of the balance of the loan when repayment agreement or other conditions of the contract are breached.

Accrued Interest:
Interest that is earned based on the balance of the loan, but is not yet paid.

Adjustable Rate:
An interest rate which varies based on an index.

Adjustable Rate Mortgage (ARM):
A mortgage agreement where the interest rate varies periodically according to an index, which adjusts to match current interest rates. Payments will fluctuate according to the interest rates.

Adjustment Date/Interval:
The date or time between interest rate adjustments and changes in your mortgage payment with an ARM.

Amortization:
The calculated schedule of mortgage payments, including the principal balance of the loan and projected interest to be accrued, which will allow the loan to be paid off by a specific date or the end of the term of the loan.

Amortization schedule:
A table that shows how much of each mortgage payment will be applied to the principal balance and interest over the loan term until there is a zero balance owed.

Annual Percentage Rate (APR):
This percentage shows the actual cost of a mortgage as a yearly rate and includes the loan rate, points and other fees. Because it includes all finance charges involved with borrowing money, the APR will be higher than the interest rate on the loan.

Application:
The form, which includes necessary personal and financial information about a potential borrower, used to apply for a mortgage loan.

Appraisal:
A written approximation, prepared by an appraiser, of the current market value of a property.

Appraiser:
A professional qualified by mandated state guidelines, including education, training and experience, to estimate the value of real and personal property.

Appreciation:
A property's increase in value caused by changes in market conditions, remodeling, inflation and other factors.

Assessment:
Placing a value on a property for taxation purposes.

Assessor:
A public official who determines the value of a property for purposes of taxation.

Assignment:
Transferring a mortgage from one person or company to another is an assignment.

Assumable Mortgage:
A mortgage which can be transferred from the seller to a qualified buyer when a home is sold.

Balance Sheet:
A financial statement which shows an individual's assets, liabilities and net worth as of a specific date.

Balloon Mortgage:
A mortgage with a fixed-rate and low payments for a stated term and one final "balloon payment" of the remaining principal balance at the end of the term.

Balloon Payment:
The final lump sum payment made at the maturity date of the balloon mortgage.

Bankruptcy:
Federal court proceedings which can result in a debtor being relieved of debts and liabilities.

Bequest:
A willful gift of personal property.

Bill of Sale:
A written document providing proof of the transfer of ownership to another person.

Borrower:
A person who applies and is approved for a loan in the form of a mortgage. The borrower is then responsible for repayment of the loan.

Broker:
Someone who, for a commission or fee, is in the business of bringing parties together, arranging funding and negotiating contracts for a client.

Breach:
A violation of a legal obligation.

Buy-down:
An arrangement where a borrower pays an up-front fee (in the form of points) at the closing of the loan in exchange for a lower interest rate for a temporary time period.

Buyer's Broker:
An agent who represents the interests of a buyer. The agent's responsibilities include locating property for purchase and negotiating the sale of a home.

Bona Fide:
In good faith.

Caps:
A provision of an adjustable-rate mortgage that limits the amount an interest rate can change per year or over the term of the loan.

Cash-out Refinance:
A transaction which allows a borrower to refinance a mortgage at an amount in excess of the loan balance and receive cash for personal use.

Cashier's Check:
A check which is guaranteed to be honored because it is paid for in advance and in drawn from a financial institution's account instead of a client's bank account.

Ceiling:
The highest possible interest rate of an adjustable-rate mortgage.

Certificate of Eligibility:
A document issued by the Veterans Administration that certifies a veteran is eligible for a VA loan.

Certificate of Reasonable Value (CRV):
A document issued as a result of an appraisal by the Veterans Administration which establishes the highest current market value for a VA mortgage.

Certificate of Occupancy:
A document from a local government agency which states that a property meets the health and building codes standards.

Certification of Title:
An opinion written by an attorney or title company that verifies the status of a title.

Certified Check:
A check which is drawn from the issuer's account for funds the bank has set aside to insure payment

Chain of Title:
The analysis of transference of a property over time beginning with the original owner and ending with the most recent.

Clear Title:
A marketable title that is free of liens, legal questions of ownership or defects of any kind.

Closing:
A meeting among the buyer, seller and lender organization where the sale of a property is finalized. This is also referred to as "settlement."

Closing Costs:
Expenses and fees incurred beyond the price of the property being purchased during a real estate or mortgage deal during the closing of a loan are referred to as closing costs. They include, but are not limited to, an origination fee, appraisal fees, escrow expenses, property taxes, credit reporting, title searches, etc.

Closing Statement:
See HUD-1 Settlement Statement.

Cloud on Title:
Any problems revealed by a title search that adversely affect or impair the owner's title.

Co-Borrower:
A person who is equally and jointly as liable for repayment of a loan as the Borrower.

Collateral:
An asset that guarantees repayment of a loan. Examples of this are a car, house or real property.

Collection:
A loan will go to "collection" when a borrower falls behind on payments. This is an attempt to make a delinquent mortgage current.

Commission:
The fee charged by a real estate agent or broker for negotiating or facilitating a transaction. The fee is usually a percentage of the price of a property or loan amount.

Condition:
An obligation that must be fulfilled before a loan can close.

Condominium:
A type of ownership where the homeowner holds the title only to an individual unit in which he or she lives, but all residences of the building own the common places together.

Contract of Sale:
A contract between the buyer and seller on the terms and conditions of a sale.

Conventional Mortgage:
Any home loan which is not insured or guaranteed by the federal government as VA and FHA loans are.

Convertible ARM:
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified time guidelines.

Cost of Funds Index (COFI):
An index used to determine changes in the rates for adjustable-rate mortgages.

Conveyance:
The action of transferring a deed, lease or mortgage.

Credit History:
The record of an individual's outstanding, current and paid-in-full debt is called credit history.

Credit Report:
A report prepared by a consumer reporting agency and utilized by a lender to determine an applicant's credit history and current credit standing.

Credit Risk:
This term is used when a lender feels that a borrower may default of their financial obligations to the investor.

Debt-to-Income Ratio (DTI):
The ratio, expressed as a percentage, of a borrowers total monthly obligations versus their monthly income.

Deed:
A legal document that conveys title to a property.

Deed of Trust:
A document used in some states instead of a mortgage, to pledge property as insurance for a loan.

Default:
Failure to meet the legal obligations of a contract, including failure to make payments on a loan.

Delinquency:
Failure to make required mortgage payments in a timely fashion will result tin delinquency.

Deposit:
A sum of money use to bind a contract.

Depreciation:
The decline in the value of property.

Discharge:
This refers to debts which are no longer owed following the outcome of bankruptcy proceedings. For all bankruptcies, Baltimore American Mortgage requires a copy of the Discharge of Debts document as a pre-closing condition.

Discount Points:
See Points.

Down Payment:
An amount of money paid at closing by the buyer, which is the difference between the purchase price of a property and the amount financed through a lender.

Drive-by Appraisal:
An estimation of a property by an independent appraiser based mainly on recent comparable sales.

Document Review Fee:
The fee a lender charges to review the documents needed to initiate a loan.

Due-on-sale Clause:
A provision in a mortgage that serves as security for the mortgage and allows the lender to demand repayment in full if the borrower sells the property for which the mortgage was initiated.

Earnest Money:
A deposit made by the buyer to the seller to demonstrate good faith of an offer to purchase the property. The money is exchanged during the signing of the purchase agreement and is later put toward the purchase price of the property.

Easement:
A right of way giving someone, other than the owner, access to or control over a property.

Effective Age:
The effective age of a structure is determined by an appraiser based on its physical condition and may differ than its actual age.

Encroachment:
An improvement to a property that illegally intrudes on another person's property.

Encumbrance:
Anything that limits or affects a title and lessens the property value. Encumbrances may be in the form of unpaid taxes, liens, claims or easements.

Equal Credit Opportunity Act (ECOA):
A federal law that requires creditors and lenders to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.

Equity:
A homeowner's personal financial interest in a property. It's the difference between the current market value of a property and the remaining balance of a mortgage and other liens.

Escrow Account:
After a purchase transaction closes, the buyer may have an escrow account. This is a separate trust account where the lender holds a portion of a monthly mortgage payment, which is a little higher than if the buyer were paying only on the principal and interest of the loan. This money is set aside, in an escrow account, to be used for payment of future real estate taxes, homeowner's insurance premiums and other on-going payments as they incur. Basically, it works like a checking account collecting funds gradually until payments are due at which time the funds are dispersed.

Fair Credit Reporting Act:
A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

Fair Market Value:
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest price a seller, willing but not compelled to sell, would accept for a property.

Fannie Mae:
The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company created to make mortgage money more available and affordable by buying and selling conventional residential mortgages including VA-guaranteed and FHA-insured mortgages. It is the nation's largest supplier of home mortgage funds.

Fannie Mae's Community Home Buyer's Program:
An income-based community lending mode, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase the buying power of low- or moderate-income families. It also decreases the total amount of cash necessary to purchase a home. Borrowers who participate in this program are required to attend pre-purchase home-buyer education sessions.

Federal Housing Administration (FHA):
A government agency of the U.S. Department of Housing and Urban Development (HUD). Its main purpose is to insure residential mortgage loans made by private lenders. This agency sets the standards for underwriting, but does not lend money.

Fee Simple:
Absolute ownership of real property.

FHA Mortgage:
A mortgage that is insured by the Federal Housing Administration (FHA). This includes VA loans and is often referred to as a government loan.

First Mortgage:
A mortgage which is the primary lien against a property, so if a foreclosure were to take place, the first mortgage would be repaid before any other mortgage.

Fixed Rate:
An interest rate (APR) that will not vary throughout the life of the loan.

Fixed-Rate Mortgage:
A mortgage with an interest rate that will not vary throughout the entire loan term.

Flood Insurance:
Insurance that will compensate a homeowner for physical property damage resulting from flooding. Flood situations are not covered by Homeowner's Insurance. Typically this type of insurance is required for properties located in federally designated flood areas.

Forbearance:
A grace period allotted by a lender which postpones foreclosure and gives the borrower time to bring mortgage balance current.

Foreclosure:
A legal process where, due to a borrowers default on mortgage terms, the borrower loses all rights to and interest in a mortgaged property. The lender forces a sale of the property where the proceeds are applied to the mortgage debt.

Good Faith Estimate:
A written estimate of closing costs which a borrower will be responsible for at the time of settlement.

Grace Period:
The period of time when a mortgage loan payment may be made after the due date without incurring late fees.

Graduated Payment Mortgage:
A flexible-payment mortgage where payments start at a lower amount, increase for a set period of time, and then level off.

Gross Income:
A borrower's total income before taxes and other deductions.

Guarantee Mortgage:
A mortgage which is guaranteed by a third party.

Hazard Insurance:
Insurance which protects the insured against losses caused by fire, wind, vandalism and natural disasters. Hazard Insurance does not protect against floods or earthquakes.

HELOC (Home Equity Line of Credit):
A line of credit that is secured by the equity in ones home, so a borrower may draw cash off amounts already repaid.

Home Equity Loan:
A loan that is secured by the equity in a borrower's home and may be used for many things including home improvements, major purchases or expenses or debt consolidation.

Home Inspection:
A complete and thorough inspection of the structural and mechanical condition of a property. The sale of a property is usually contingent on a satisfactory home inspection.

Homeowners' Association (HOA):
A nonprofit association, which is made up of elected officers, whose purpose is to manage the common areas of a planned unit development (PUD) or condominium project.

Homeowner's Insurance:
An insurance policy which covers personal liability and hazard insurance for a residence and its contents.

Homeowner's Warranty:
A type of insurance purchased by a homeowner that will repairs, such as heating and air conditioning, should they malfunction during a certain period of time.

Housing and Urban Development (HUD):
A government agency that oversees the Federal Housing Administration and was designed to put into operation federal housing and community development programs.

Housing Code:
Local government ordinances that regulate and set the minimum standards for sanitation and safety for dwellings already in existence.

HUD-1 Settlement Statement:
A document that shows an itemized account of all expenses paid at closing. These items include real estate commissions, loan fees, points and escrow amounts.

Impound Account:
See Escrow Account.

Index:
A published interest rate that can be utilized by lenders to determine rate adjustments associated with an ARM.

Initial Rate:
The original interest rate of a mortgage at the time of closing or the first interval of an ARM loan.

Insolvency:
This term refers to the condition of a borrower who is unable to pay debts.

Insured Mortgage:
See FHA Mortgage.

Interest:
The fee, expressed in a percentage, charged for borrowing money. See Annual Percentage Rate (APR).

Interest Accrual Rate:
The percentage rate at which interest accrues on a mortgage and is usually used to calculate monthly payments.

Interest-Only Loan Option:
This is when the borrower only pays on the interest portion of a mortgage loan for a specified period of time and pays nothing toward the principal balance of the loan. This allows for a low monthly mortgage payment.

Joint Liability:
This is used to describe a situation where the liability for a debt is shared by two or more people.

Junior Mortgage:
A mortgage that is secondary to another mortgage. So in the event of a foreclosure the senior mortgage is paid off first.

Late Charge:
The penalty paid by a borrower when a scheduled payment is past the grace period.

Legal Description:
A property description, recognized by law, adequate enough to locate and identify the property without oral testimony.

Lender:
This term refers to the financial institution, bank or mortgage company providing funds for a loan.

LIBOR (London Interbank Offered Rate):
The interest rate charged by banks for short-term Eurodollar loans and is coincidentally an index also commonly used for ARMs.

Liabilities:
Refers to a person's outstanding financial obligations which may infringe on a person's ability to pay.

Lien:
A legal claim against a property for payment of a debt obligation.

Lifetime Cap:
A provision of an ARM that describes the limits of the highest or lowest possible interest rate for the entire term of a loan.

Liquid Assets:
Cash or any assets that may be easily converted into cash.

Loan Amount:
The total amount of money borrowed from a lender.

Loan Application:
See Application.

Loan Consultant:
This representative's job is to solicit loans, represent the lending institution and represent a borrower to a lending institution. They may also be referred to as a loan officer, account executive, lender and other terms.

Loan Origination Fee:
The fee, usually calculated as a percentage of the value of the loan, charged by a lender that is associated with the work involved in evaluating and processing a loan application.

Loan Servicing:
Once a borrower obtains a loan, the institution that collects payments is responsible for processing payments, sending statement, managing escrow/impound accounts, handling collection efforts in the event of a delinquent loan, ensuring that insurance and property taxes are up-to-date, handling pay-offs and assumptions and other tasks. This is all part of "servicing" a loan.

Loan to Value Ratio (LTV):
The relationship, expressed in a percentage, between the amount of the loan and the appraised value or sales price (whichever is lower).

Lock or Lock-in:
A written agreement by the lender which guarantees a quoted interest rate will remain the same for a specified time period.

Lock-in Period:
The time period for which a lender has guaranteed a rate.

Margin:
The amount a lender adds to an index on an ARM that is used to calculate the adjusted interest rate.

Marketable Title:
See Clear Title.

Market Value:
See Fair Market Value.

Maturity:
The date when the principal balance of a loan becomes due and payable and loan is repaid in full.

Modification:
Any changes to the terms of an existing mortgage, without refinancing, are called "modifications."

Monthly Housing Expenses:
The monthly total amount of principal, interest, taxes and insurance that a borrower pays.

Mortgage:
The legal agreement, which creates a lien, between a lender and a borrower that secures payment of a loan.

Mortgage Banker:
A company that originates its own mortgages exclusively for resale on a secondary market.

Mortgage Broker:
A mortgage company that originates loans, then places the loans with other financial institutions.

Mortgage Insurance (MI):
A type of insurance that protect a lender against loss if a borrower defaults and fails to make timely payments on their mortgage.

Mortgage Loan:
A loan for which real estate serves as collateral for repayment.

Mortgagee:
This term refers to the lender.

Mortgagor:
This term refers to the borrower.

Negative Amortization:
This takes place when monthly payments are not larger enough to cover all the interest on the loan. Therefore, the unpaid interest is added to the unpaid principal balance and the loan balance increases.

Net Effective Income:
Defines a borrower's gross income after taxes have been taken out.

Non-Conforming Loans:
These loans are also referred to as Jumbo Loans and do not conform to the traditional Fannie Mae or Freddie Mac conditions due to loan amount and underwriting guidelines. These loans are usually for amounts upwards of $399,500 and larger.

Non-Dischargeable Debt:
Debt, which includes taxes, which cannot be forgiven in bankruptcy.

Non-Owner Occupied:
A property that is not considered the owner's "primary" residence.

Notary Public:
A public officer who has been authorized to administer oaths, attestations and certifications of certain documents.

Note:
A legal contract which obligates a borrower to repay a mortgage debt at its specified interest rate and during a specified time period.

Notice of Default:
This is a formal written notice to a borrower that a default has occurred and that legal action may be taken.

Opinion of Title:
A written statement as to the status of title to a property, given by a title company or an attorney, but does not offer the protection given by title insurance.

Original Principal Balance:
The total amount of principal owed on a mortgage loan before any payments are made.

Origination Fee:
See Loan Origination Fee.

Owner Financing:
A property purchase transaction where the seller provides all or part of the financing.

Payment Change Date:
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately following the interest rate adjustment date.

Per Diem Interest:
This refers to interest that is calculated daily or per day. This comes into play at closing because whatever day of the month that closing takes place, the borrower will pay interest from that date until the end of the month.

Periodic Payment Cap:
This places a limit on the amount that payments can increase or decrease during any adjustment period.

Periodic Rate Cap:
This places a limit on the amount an interest rate may decrease or increase during one adjustment period.

Personal Property:
Any property that is not real property.

Piggyback:
This refers to a situation where borrowers will often use a "piggyback" second mortgage in conjunction with a first mortgage so they don't need a 20 percent down payment and can avoid PMI.

PITI (Principal, Interest, Taxes and Insurance):
A term used to describe the components that make up a borrower's monthly mortgage payments. This may also be called Monthly Housing Expenses.

Points:
When a buyer or seller pays extra at closing to decrease the interest rate of a loan. One point is equal to one percent of the loan amount.

Power of Attorney:
A legal document which authorizes one person to act on another's behalf.

Pre-Approval:
The process of determining how much a borrower will be eligible to borrow when they apply for a mortgage loan.

Prepaid Expenses:
Items that must be paid for at closing and in advance of due dates. These items may include taxes, first-year premiums for hazard, flood and mortgage insurance, prorated interest, private mortgage insurance and special assessments.

Prepaid Interest:
The amount of interest charged to the borrower at closing to cover interest on the loan between the first scheduled payment and the time of closing.

Prepayment:
Any monies paid to reduce the principal balance of the loan before the due date. Prepayment may occur by making extra mortgage payments, refinancing or selling a property.

Prepayment Penalty:
A fee that could be assessed for paying off a loan ahead of schedule.

Prequalification:
The process of providing a lender with such financial information including credit rating, employment status, income and outstanding debts so they may calculate a suitable mortgage for the borrower.

Principal:
The amount of debt on a loan, excluding interest.

Private Mortgage Insurance (PMI):
See Mortgage Insurance.

Processing:
Coordinating the exchange and verification of information and documentation among all parties involved with a mortgage transaction.

Property Tax:
A government assesses tax on a property based on its market value.

Purchase Agreement:
A written contract signed by the buyer and seller that states the terms and conditions under which a property will be sold.

Qualifying Ratios:
This is t he ratio of a person's monthly expenses to their gross monthly income. This is used to measure a borrower's ability to repay a mortgage debt.

Rate Lock:
See Lock.

Real Estate Broker:
A licensed real estate agent who negotiates for a buyer or seller in a real estate transaction.

Real Estate Settlement Procedures Act (RESPA):
A law that was put into place to protect consumers that requires lenders to inform borrowers in advance of all closing costs.

Real Property:
Land and anything that is affixed to it such as a house or building.

Realtor:
This term refers to any licensed real estate agent or broker that is a member of the National Association of Realtors.

Reclamation:
The right of someone with title to a property to recover it if a bankruptcy was to occur.

Re-conveyance:
The act of releasing a person of obligation under deed of trust once a loan has been paid in full.

Recording:
The process of noting documents regarding title to a property into public record.

Recording Fees:
The fee paid to a lender or agent for recording the sale of a property into public records.

Refinancing:
The process of obtaining a new mortgage to replace an old one, usually to take advantage of lower interest rates, cash-out options or better loan terms. The new mortgage is used to pay off the original one.

Regulation Z:
This regulation, written by the Federal Reserve Board to put into operation the Truth-In-Lending Act, requires that a full written disclosure of the cost of credit being offered to a borrower is expressed as an APR.

Revolving Debt:
A debt, such as a credit card, that gives a customer a preapproved line of credit and doesn't have a fixed monthly payment.

Right of First Refusal:
A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.

Satisfaction of Mortgage:
When a mortgage debt is repaid in full a document is issued by the lender. This can also be called a "release of mortgage."

Second Mortgage:
A mortgage that is second, or subordinate to, behind the first mortgage. Sometimes borrowers use a second mortgage as an alternative to refinancing.

Secondary Market:
The process of buying and selling existing mortgages, usually as a "pool" of mortgages to larger financial institutions.

Secured Loan:
A loan which is secured or guaranteed by collateral.

Self-Employed Borrower:
Is defined as a borrower whose income comes from a business source in which he or she owns at least 25 percent or more.

Servicing:
See Loan Servicing.

Settlement:
The conclusion of a real estate transaction, where all parties, buyer, seller, lender and any representative agents, meet to finalize the sale of money and property.

Settlement Costs:
See Closing Costs.

Settlement Cost (HUD Guide):
After a borrower completes a loan application, they should be given a booklet that explains the lending process.

Single Family Residence (SFR):
A structure which is intended to house only one family.

Supplemental Income:
Any income that is derived from sources such as interest/dividends, rental properties and capital gains.

Survey:
The action of measuring and showing the legal boundaries of land through a map, print or drawing. This is performed by a licensed surveyor.

Sweat Equity:
By contributing to the construction or rehabilitation of a property through labor or other services, instead of cash, a person may have sweat equity in a property.

Tax Lien:
A legal claim against a property for unpaid taxes.

Tax Sale:
When a government official publicly sells a property due to nonpayment of taxes.

Term:
The life of a mortgage loan or the period allotted to pay back the amount borrowed.

Title:
A legal document that demonstrates ownership of property.

Title Company:
A company that specializes in examining and insuring titles for real estate.

Title Insurance:
An insurance policy, usually issued by the title company, which protects the lender and buyer of a property against loss due to errors in the title search or defects in a title.

Title Search:
The process of investigating public records to determine legal ownership of a property. This is done to be sure a seller is able to transfer free and clear ownership.

Transfer Tax:
State and or local taxes that is payable when title of a property is passed form one owner to another.

Trust Account:
See Escrow Account.

Trustee:
A third party that has been given legal right to hold property in the interest of another.

Truth-In-Lending Act:
A federal law that requires lenders to fully disclose, in print, the terms and conditions of a loan, including the annual percentage rate and all other charges. This law was designed to make it easier for consumers to compare various lending institutions. See Regulation Z.

Underwriter:
A person who reviews all supporting documents to determine the risk associated with granting a borrower a loan. This person authorizes final approval of loans.

Underwriting:
The process of deciding whether or not to approve a loan based on examining credit history, employment, assets and any other pertinent documentation.

Veterans Administration (VA):
A government agency whose primary purpose is to encourage lenders to grant loans to qualified veterans with no- to low- down-payments and at low interest rates. The organization does this by guaranteeing a mortgage loan.

VA Loan:
Individuals who qualify by providing proof of military service may be eligible for a VA Loan, a long-term loan with no- to low-down-payments, that will be guaranteed by the Veterans Administration.

Verification of Deposit (VOD):
A document, signed by a borrower's financial institution, which verifies the status of his or her financial accounts.

Verification of Employment (VOE):
Documentation provided by a borrower's employer that is signed to verify a borrower's position and salary.

Waiver:
This describes a voluntary surrender of a right or privilege.

Yield:
The ratio of investment income compared to a total invested amount over a specified period of time.

Zoning Regulations or Ordinances:
Local government laws that determine and establish specific types of property uses (such as residential, commercial, industrial, etc.) and regulations.

or call toll-free at 1.866.535.BAMC

(1.866.535.2262)

Experience the Baltimore American Mortgage difference today. Choose from a variety of mortgage programs designed to meet your individual financial situation. All with expert assistance and a great rate! When you apply with BAMC you avoid paying a broker fee and other costs to a middleman.

BAMC offers a variety of financing solutions with different rates and terms in addition to the no points and no closing costs option. Consult a loan representative to determine the program that's right for you.

* Loan programs are not available in all states. Minimum loan amount $175,000. Lower loan amounts available on other programs. A $500 lock-in fee is required at the time of application. This fee is refunded at the time of settlement as reflected on line 1304 on the borrower's HUD1. Actual closing costs credit to borrower is reflected on line 1305 of the HUD1. Other restrictions apply. Consult a Baltimore American Mortgage loan representative for complete program details, current rate quotes and available financing options. Borrower required to utilize the combined services of Baltimore American Mortgage, RE/MAX Exclusive Realty and Americom Title, LLC on purchase transactions.

Learning Center

Glossary

or call toll-free at 1.866.535.BAMC

First-Time Homebuyers

BAMCdirect.com Extras

www.bamcdirect.com