1% Rule in Real Estate
1% Rule in Real Estate is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
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1% Rule in Real Estate is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
125% Loan is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
A 2-1 buydown loan temporarily lowers the borrower rate for the first two years before reaching the note rate.
A 2/28 adjustable-rate mortgage has a fixed initial rate for two years followed by rate adjustments for the remaining term.
28/36 Rule is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
A 3-2-1 buydown mortgage reduces the borrower rate in staged steps for the first three years before the full note rate applies.
A 3/27 adjustable-rate mortgage has a fixed initial rate for three years before annual or periodic rate adjustments begin.
Adjustable-rate mortgage with a five-year fixed period followed by annual rate resets tied to an index and margin.
A 5/6 hybrid ARM has a fixed rate for five years and then adjusts every six months under its index and margin.
80-10-10 Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Absorption Rate in Real Estate is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Loan clause allowing the lender to demand immediate repayment of the full balance after default or another specified breach.
An adjustable-rate mortgage has an interest rate that resets periodically based on an index, margin, caps, and adjustment schedule.
Adjusted Funds From Operations (AFFO) is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Affordable Housing Loan aims to make housing accessible to low- and moderate-income families, providing financial assistance and favorable terms to facilitate home ownership.
A provision in a mortgage agreement stating that any property acquired by the borrower after the signing of the mortgage will serve as additional security for the obligation.
After-Tax Cash Flow is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
After-Tax Equity Yield is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
After-Tax Proceeds from Resale is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
An All-Inclusive Trust Deed (AITD) is a financial arrangement where an existing mortgage is wrapped within a new, larger loan.
ALT-A Mortgages is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
An Alternative Mortgage Instrument (AMI) is any mortgage that does not follow the traditional fixed-interest-rate, level-payment amortizing loan structure.
An amortization schedule shows each loan payment's principal, interest, and remaining balance over the repayment term.
Annual mortgage insurance premium is a recurring insurance charge on certain loans, often added to monthly mortgage payments.
Appreciated property refers to assets that have experienced an increase in value over time.
Assignment involves transferring rights, property, or interests from one party (assignor) to another (assignee).
An assumable loan is a type of mortgage loan that allows a new home purchaser to take over the existing loan of the seller without altering the terms of the loan.
The concept of loan assumability in real estate transactions refers to whether the obligations associated with a loan can be transferred to a new borrower.
Mortgage whose existing loan terms can be transferred to a qualified buyer instead of forcing the buyer to originate a new mortgage.
Assumption Fee: A charge levied by a lender to a buyer who assumes the existing loan on the subject property.
Formal transfer of an existing mortgage to a buyer who takes over the debt obligation under the lender's approval process.
Back-End Ratio is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
Mortgage that does not fully amortize over its legal term and therefore leaves a large remaining balance due at maturity.
Beneficial Owner is a property-title concept used to evaluate ownership claims, liens, and real-estate collateral risk.
A biweekly loan payment plan collects payments every two weeks, potentially accelerating principal repayment over a year.
A blanket mortgage is a single mortgage that encompasses more than one parcel of real estate.
A bridging loan is a short-term loan used to bridge the gap between the purchase of one asset and the sale of another, commonly used in the property and housing market.
Budget Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Building Society is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
A buy down lowers a loan's interest rate through upfront funds, seller credits, builder concessions, or lender pricing arrangements.
CAP RATE is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Capitalized Value is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Caps limitations restrict how much an adjustable loan's rate or payment can change at each adjustment or over the loan term.
Case Shiller Index is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
A cash buyer is a customer who completes a purchase by directly providing funds at the time of order, either in the form of physical cash, a check, or a money order.
Cash equivalence refers to the market value of an asset if sold for cash on the open market.
Cash-on-Cash Return is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Cash-out refinancing is a mortgage refinancing strategy that allows homeowners to replace their existing mortgage with a new one, typically for a larger amount.
VA home-loan eligibility document showing that a borrower meets the service-based requirements for using VA mortgage benefits.
VA appraisal document establishing the property's reasonable value for a VA-backed mortgage transaction.
Chattel Mortgage is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
A closed-end mortgage is a type of mortgage-bond issue that comes with specific collateral and operational restrictions.
Closing costs are fees and charges paid at settlement, including lender, title, recording, escrow, and prepaid cost items.
A closing disclosure itemizes final mortgage terms, projected payments, closing costs, cash to close, and settlement details.
A Co-Mortgagor is an individual who signs a mortgage contract along with one or more parties.
A co-signer is an individual who agrees to take responsibility for repaying a loan if the original borrower defaults on payments.
The Cost of Funds Index (COFI) is an integral index in the financial and real estate sectors, especially as it relates to adjustable-rate mortgages (ARMs).
Collateralized Mortgage Obligation is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
The combined loan-to-value (CLTV) ratio measures total borrowing secured by a property relative to the property's value.
Commercial Mortgage-Backed Security is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Computerized Loan Origination (CLO) is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Conforming Loan is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Construction Loan is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
A conventional loan is a type of mortgage that is not insured or guaranteed by any government agency.
Conventional mortgages are home loans made through private lenders such as banks, credit unions, and mortgage companies without direct government backing.
Corporate Real Estate (CRE) refers to the real property held or used by a business enterprise or organization for its own operational purposes.
Cost Approach is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Cost-Burdened Households is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
Creative financing refers to various non-traditional methods of financing property purchases other than obtaining a standard mortgage from third-party lending institutions.
A Credit Bid is a financial mechanism used primarily in bankruptcy auctions where a secured creditor participates as a bidder.
Current Cap Rate is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Custodian is a property-title concept used to evaluate ownership claims, liens, and real-estate collateral risk.
Debt-Service Coverage Ratio (DSCR) is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Borrower affordability ratio comparing debt obligations with income, widely used in consumer and mortgage underwriting.
Three-party real-estate security instrument that lets a trustee hold legal title for a lender and often supports non-judicial foreclosure.
Workout in which a borrower transfers title to the lender to avoid a full foreclosure process on a distressed mortgage.
Court order requiring a borrower to pay the remaining debt after foreclosure or collateral sale proceeds fail to cover the full balance.
A discharge releases a mortgage, lien, or debt obligation after repayment, settlement, or legal completion under applicable rules.
Discharge of Mortgage is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Discount points are upfront fees paid to reduce a mortgage interest rate, changing the tradeoff between cash due and monthly payment.
Discount points vs. origination points compares rate-buydown charges with lender compensation or loan-origination fees.
Urgent sale of property or another asset under financial pressure, often at a price below ordinary market expectations.
Distressed Asset is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
A distressed sale happens when assets are sold quickly at a significantly lower price than their market value due to urgency or financial duress.
A down payment is the borrower's upfront equity contribution toward a purchase price, reducing the loan amount needed.
Draw Schedule is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Dry Loan is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Mortgage contract provision that lets the lender demand payoff when ownership changes without approved loan transfer.
Effective Gross Income (EGI) is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Interest-only mortgage paired with an endowment policy intended to accumulate enough value to repay principal at the end of the term.
Equitable Interest is a property-title concept used to evaluate ownership claims, liens, and real-estate collateral risk.
Equity build-up refers to the increase in the homeowner's ownership stake in a property, primarily achieved through mortgage payments and property value appreciation.
Equity Contribution refers to the amount of capital that a borrower personally invests into an asset, encompassing various forms and implications in financial arrangements.
An equity loan is a loan secured by the borrower's equity in a property or other asset.
An Equity Real Estate Investment Trust (REIT) is a type of REIT that holds ownership in real estate properties, generating income from rents and capital appreciation.
Equity Withdrawal refers to the process of raising a new or increased mortgage on a property for purposes other than purchasing or improving the mortgaged property.
Equity Yield Rate is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Escrow is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Mortgage-side account used to collect and hold money for property taxes, homeowners insurance, and similar housing costs paid when due.
Escrow Cushion is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Specified breach in a loan agreement that gives the lender contractual remedies such as acceleration, foreclosure, or enforcement against collateral.
Existing Home Sales is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Fannie Mae is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Fannie Mae and Freddie Mac is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Farmer Mac is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Federal Housing Administration (FHA) is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Federal Housing Finance Agency (FHFA) is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Federal Land Banks were Farm Credit System institutions created to provide long-term mortgage credit to farmers and rural borrowers.
FHA 203(k) Loan is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Government-insured mortgage designed for owner-occupied homebuyers who need lower down payments and more flexible credit standards than many conventional loans.
FHA Mortgage Loan is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
FHFA House Price Index (HPI) is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
A fifteen-year mortgage is a fixed-rate, level-payment mortgage loan that has a term of fifteen years.
Financial Feasibility is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Financial Management Rate of Return (FMRR) is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
A first lien refers to a legal claim or hold on property, giving the holder the right to seize or use assets in case of non-payment, and it has priority over all other claims.
First Lien Debt is the debt that is secured by a property and recorded first in the public records, giving it priority over all other debts in the event of default.
Mortgage with first-priority claim on a property, typically the senior lien that gets paid before junior mortgages after foreclosure.
First Mortgage Debenture is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
An individual who has not owned a home in the previous three years, frequently eligible for certain incentives or special loan programs.
A fixed-rate loan keeps the same interest rate for the stated term, making scheduled interest cost and payments more predictable.
A fixed-rate mortgage keeps the same note rate for the life of the loan unless refinanced or modified.
Flipping refers to the practice of buying real estate, securities, or IPOs with the intent of reselling them quickly to profit from market fluctuations.
A Forced Sale refers to a situation where a seller is compelled to sell an asset or property urgently, often at a price lower than its fair market value.
Legal enforcement process that lets a mortgage lender recover a defaulted home loan by taking and selling the collateral property.
Form 1098 reports mortgage interest and related amounts that may support a mortgage interest deduction.
Fractional Ownership is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Fraud and flipping refer to the illegal practice in the real estate industry where properties are purchased and swiftly resold at artificially inflated prices.
Freddie Mac is a government-sponsored enterprise that buys mortgages, supports securitization, and provides liquidity to the U.S. housing finance system.
Freddie Mac Scandal is a secondary mortgage-market concept used to analyze securitization, agency support, and investor risk.
Front Money is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Front-End Debt-to-Income (DTI) Ratio is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
A fully amortizing payment pays enough principal and interest to retire the loan by the end of its term.
Government-backed mortgage charge, most commonly tied to VA and USDA programs, that helps support the economics of the loan guaranty or insurance structure.
Funds From Operations is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
A gap loan is short-term financing used to cover a temporary funding shortfall before permanent or expected financing is available.
Gift Letter is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Gift of Equity is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Ginnie Mae is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Ginnie Mae Pass-Through Securities are a type of mortgage-backed security (MBS) that are guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae).
Going-In Cap Rate is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
A good faith estimate was a mortgage cost disclosure showing estimated loan terms and settlement charges before closing.
Good faith money is an upfront deposit showing buyer commitment, often credited at closing or governed by contract contingencies.
Government-Sponsored Enterprise (GSE) is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
A borrower grace period allows payment shortly after the due date before a late fee or default consequence applies.
Mortgage with scheduled payment increases over time, often used when the borrower expects rising income but accepts higher later payment risk.
Gross Debt Service Ratio (GDS) is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Gross Income Multiplier is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Gross Rent Multiplier is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Gross Rental Yield is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Mortgage with scheduled payment increases that push more cash toward principal over time and shorten the effective payoff path.
GSE Government-Sponsored Enterprise is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Guarantee Fees is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Guaranteed Mortgage is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Half-Life is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Hard Money Loan is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Explicitly indicates that the price is high, without necessarily implying value judgment.
High-Ratio Loan is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Holdback is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Home Affordable Modification Program is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Former U.S. refinance program that let many underwater borrowers replace existing mortgages even when home values had fallen below loan balances.
Home equity is the portion of your property's value that you truly own.
Home Equity Conversion is the process of liquidating all or a portion of the equity in one's home.
FHA-insured U.S. reverse mortgage program that lets eligible older homeowners draw on home equity under program-specific limits and protections.
A Home Equity Line of Credit (HELOC) is a revolving credit loan secured by the homeowner's equity.
A home equity loan is a type of consumer loan that allows homeowners to borrow money by leveraging the equity they have built up in their home.
The home equity loan interest deduction may allow interest on qualifying home-equity debt used for eligible home purposes.
Home Mortgage Disclosure Act (HMDA) is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Home mortgage interest is the interest charged on a loan secured by a residence, often relevant to payment and tax analysis.
The Home Mortgage Interest Deduction allows taxpayers to deduct interest paid on loans secured by their primary or secondary residences from their taxable income.
Homeownership Rate is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
The Hope Now Alliance is a consortium formed in 2007, constituted by various organizations within the mortgage industry.
House Poor is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
House Price Index (HPI) is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
House rich, cash poor describes owning substantial home equity while lacking liquid cash for expenses, debt service, or investment needs.
Housing Authority Bonds Explanation is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
An economic bubble occurring in real estate markets, characterized by rapid and unsustainable increases in property prices.
Housing Cost Burden is the percentage of a household's income that is allocated to housing expenses.
Housing Expense Ratio is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
Housing Finance Agency is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Housing Market Index (HMI) is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Housing Starts is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
HUD is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
HUD-1 Form Uses and Breakdown is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
A hybrid adjustable-rate mortgage combines an initial fixed-rate period with later adjustable-rate resets.
Hybrid REITs combine the investment strategies of both equity REITs and mortgage REITs, offering diversified real estate investment opportunities.
In-House Financing is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Income Approach is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Income Property is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Initial Yield is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
An installment sale is a transaction in which the buyer pays the purchase price over time in periodic installments, rather than paying the entire amount up front.
An instalment sale is a financing arrangement where the buyer makes a series of scheduled payments to the seller over time to purchase an asset.
Mortgage structure with an initial period of interest-only payments before principal amortization begins or a later balance must be refinanced.
Interim Financing is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Investment Property is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Investment Real Estate focuses on properties acquired primarily for the purpose of generating investment returns, as opposed to operational use.
IRS Form 8396 is used to claim the mortgage interest credit tied to qualifying mortgage credit certificates.
UK-style interest-only mortgage paired with ISA contributions that are intended to build enough value to repay principal at maturity.
A Judgment Lien is a legal tool that creditors use to secure their interest in a debtor's property when the debtor fails to meet their payment obligations.
Foreclosure path that requires court supervision before the lender can complete the sale of a defaulted mortgaged property.
Jumbo Loan is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Jumbo Pool is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Junior debt, also known as subordinated debt, refers to a class of debt that sits lower in the repayment hierarchy compared to other debt claims.
A junior lien is a type of lien that holds a subordinate position in the payment hierarchy relative to other liens.
Mortgage that ranks below a senior mortgage in the repayment stack, including second mortgages and other subordinate property loans.
A junk fee is a questioned or excessive charge in a mortgage, closing, banking, or service transaction.
Kicker in Finance and Real Estate is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Land Bank Loans is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
A level-payment mortgage is a type of mortgage that requires the borrower to make identical payments at regular intervals (typically monthly) throughout the life of the loan.
A lien is the legal right or interest that a creditor has in the debtor's property, granted for the purpose of securing the payment of a debt.
Lien Priority determines the order in which creditors are paid during a foreclosure process. Primary mortgages typically take precedence over secondary liens.
This concept is also commonly labeled 1031 exchange, because it is grounded in Section 1031 of the U.S.
A Loan Estimate is a three-page form that provides early disclosure of the loan terms and estimated costs associated with a mortgage.
A loan lock protects agreed loan pricing or terms for a limited period before funding or closing.
Workout in which a lender changes mortgage terms to make a distressed home loan more manageable and reduce foreclosure risk.
Loan Originator is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
The loan-to-cost (LTC) ratio measures the loan amount relative to the total cost of a project.
Loan-to-cost ratio compares a project loan amount with total project cost, commonly used in construction and commercial real estate finance.
Lending ratio comparing loan amount with property value, central to mortgage underwriting, pricing, and leverage limits.
Lock Box is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
A locked-in interest rate is a rate that a lender promises to a borrower at the time of the loan application.
Low Documentation Loan is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
The Loan-to-Value (LTV) ratio is a financial term used to express the ratio of a loan to the value of an asset purchased.
The Loan-to-Value (LTV) Ratio is a financial metric used in the real estate and lending industries to assess the risk of extending a loan.
Mortgage-Backed Securities (MBS) are debt obligations packaged and sold by entities like Fannie Mae.
Mortgage is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Mortgage Approval is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Mortgage Banker is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Mortgage Bond is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Mortgage Broker is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Mortgage Commitment is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Mortgage constant expresses annual debt service as a percentage of the original loan amount for a fixed-rate amortizing loan.
Mortgage Correspondent is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Mortgage credit certificates can let eligible homebuyers claim a tax credit for part of mortgage interest paid.
Debt secured by real property, whether viewed as a single borrower's mortgage balance or as a broader category of housing-related leverage.
Explanation of the mortgage discount, how it is applied, its benefits, and comparisons with related terms such as discount points.
Temporary workout that reduces or pauses mortgage payments while a distressed borrower stabilizes income and avoids immediate foreclosure.
Mortgage Fraud is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Lender-protective insurance structure used in mortgage lending, including private mortgage insurance on conventional loans and government-backed FHA insurance charges.
FHA mortgage-insurance cost structure that can include both an upfront charge and a recurring annual charge collected over time.
Mortgage interest is the borrowing cost paid to a lender on a mortgage loan balance.
The mortgage interest deduction allows qualifying home mortgage interest to reduce taxable income when deduction rules are met.
Mortgage Lender is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
A Mortgage Lien is a legal claim or encumbrance on a property that is used to secure a loan or mortgage.
A mortgage note is the borrower's written promise to repay a real estate loan under stated rate, payment, maturity, and default terms.
Mortgage Originator is a mortgage-market participant involved in loan origination, funding, servicing, or borrower access.
Mortgage Out is a financing strategy employed by real estate developers to secure funding that exceeds the actual cost of constructing a project.
Mortgage points are fees paid directly to the lender at closing in exchange for a reduced interest rate, potentially lowering the overall cost of a mortgage loan.
Mortgage Pre-Approval is a preliminary evaluation conducted by lenders to determine the loan amount that a borrower can afford based on their financial status.
Mortgage principal is the unpaid loan amount on which interest accrues and repayments reduce the balance.
A mortgage rate is the interest rate charged on a mortgage loan, affecting monthly payment, total interest, and affordability.
A mortgage rate lock float down preserves a locked rate while allowing a lower rate if market pricing improves under the agreement.
Mortgage Recast is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Mortgage REIT is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Mortgage relief refers to the process through which an individual or entity is acquitted or freed from mortgage debt.
An official statement provided by a lender indicating that a mortgage loan has been fully repaid.
Company that collects mortgage payments, manages escrow, and handles the day-to-day administration of a home loan on behalf of the loan owner.
Mortgage Servicing is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Asset representing the contractual right to service mortgage loans and receive servicing income tied to those loans.
Mortgage stress describes pressure on household finances when mortgage payments consume a large share of income or rise faster than cash flow.
A mortgage transfer involves transferring an existing mortgage from the seller of a property to the buyer.
A mortgage-backed certificate is a financial instrument backed by mortgages, where investors receive payments from the interest and principal on the underlying mortgages.
Mortgage-Backed Security is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Tax terms for mortgage-interest deductions, residence interest, mortgage credit certificates, exchanges, and real-estate tax rules.
Mortgage lender or secured party that holds the mortgage claim and may enforce it if the borrower defaults.
Insurance-policy provision protecting the mortgage lender's interest in the property even when the borrower's coverage position deteriorates.
Mortgage and property-finance terms for underwriting, collateral, leverage, servicing, securitization, valuation, and real-estate investment.
Mortgage borrower who grants a security interest in property and remains responsible for repayment, maintenance, taxes, and other loan obligations.
NAHB/Wells Fargo Housing Market Index is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Nareit is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Negative leverage, also known as reverse leverage, occurs when the cost of borrowing funds exceeds the return on investment derived from those funds.
Net Income Multiplier is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Net Operating Income (NOI) is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Net Profit Interest is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
New Home Sales is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
No Documentation (No Doc) Mortgages is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Non-conforming Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Foreclosure path that lets a lender or trustee sell mortgaged property without a full court case when the loan documents permit it.
Non-owner occupied refers to real estate that the owner does not occupy as a personal residence.
A Non-Primary Residence refers to any property that does not serve as the principal dwelling for an individual.
Non-Qualified Mortgages is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Non-Traded REIT is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Formal default notice that tells a mortgage borrower the loan is in breach and that foreclosure steps may follow if the default is not cured.
An obligation bond is a specialized type of mortgage bond where the face value of the bond is higher than the value of the underlying property.
An offset mortgage links savings or deposit balances to the mortgage balance for interest calculation purposes.
Mortgage that can usually be prepaid, refinanced, or discharged early without the same prepayment penalties found in closed mortgage structures.
Open-End Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Operating Company/Property Company Deal (Opco/Propco) is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Operating Expense is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Operating Expense Ratio (OER) is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
An option ARM offers payment choices that may include minimum payments, interest-only payments, and negative-amortization risk.
Original Face is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Origination in finance covers the process of creating, underwriting, approving, and documenting a new loan or financial product.
Origination points are upfront charges tied to making or arranging a mortgage, usually expressed as a percentage of the loan amount.
Overall Rate of Return (OAR) is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Package Mortgage is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
PAPER credit, in financial and banking contexts, refers to a debt that is evidenced by a written obligation, often backed by property.
The act of releasing part of the property from the mortgage lien under agreed conditions.
Partial Release Provision is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Pass-Throughs is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
The Payment Adjustment Date is the specific day when the interest rate on an Adjustable-Rate Mortgage (ARM) can be adjusted, impacting the monthly mortgage payments.
Permanent Financing is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Permanent Loan is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Piggyback Loan is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
PITI combines principal, interest, taxes, and insurance into a core monthly housing-payment measure.
Collection of loans, mortgages, securities, or assets grouped for investment, securitization, or risk sharing.
Pooling is a term used across various sectors, such as natural resources, finance, and investment.
Mortgage or deed-of-trust clause that lets a lender or trustee sell collateral after default without a full judicial foreclosure case.
Early mortgage-default stage after notice but before completed foreclosure, when borrowers may still cure, modify, sell, or surrender the property.
A less rigorous assessment that helps determine an individual's borrowing potential based on preliminary financial information.
Pre-Qualification vs. Pre-Approval is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Preemptive rights provide shareholders the ability to purchase additional shares during new issues, allowing them to maintain their proportional ownership in the company.
Prepaid interest refers to interest paid in advance of the time it is earned, with specific considerations regarding its tax-deductibility.
A prepayment penalty clause charges a borrower for paying off a loan early under specified conditions.
Price-to-Rent Ratio is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Primary Mortgage Market is a secondary mortgage-market concept used to analyze securitization, agency support, and investor risk.
A Primary Residence or Principal Residence is the main dwelling where an individual lives for the majority of the year.
A prime mortgage is a type of home loan that is offered to borrowers who possess sound credit histories and lower risk profiles.
A principal and interest payment covers scheduled loan balance reduction plus interest due for the period.
Private Equity Real Estate is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Private Money Loan is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Lender-protective insurance used on many conventional low-down-payment mortgages, usually until borrower equity reduces the lender's loss risk.
Progress Payment is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Projection Period is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Property Investment Certificates (PINC) provide a means for individuals to own a share in property value and income.
Property Lending is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Seller-financed mortgage created as part of a property sale, often used when the seller funds some or all of the purchase price directly.
Qualified Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Qualified Opportunity Zones (QOZ) allow for tax deferral on capital gains by reinvesting in designated low-income communities to encourage economic development.
A qualified residence is a home that meets tax rules for mortgage interest, credits, or related housing benefits.
Qualified Residence Interest is the interest paid on a home mortgage that may be deductible as an itemized deduction in U.S.
Qualifying Ratios is a mortgage qualification measure used to assess borrower income, debt capacity, and affordability.
A rate cap limits how high an adjustable interest rate can rise at reset dates or over the loan's life.
A rate lock holds a quoted mortgage rate for a specified period while the loan moves toward closing.
A document provided by lenders that outlines the mortgage rates offered to borrowers, encompassing various loan products and interest rates.
Rate-and-Term Refinance is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
The periodic rise and fall of real estate markets over time, typically comprising expansion, peak, contraction, and trough.
Real Estate Index is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Real Estate Investment Group (REIG) is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Real Estate Investment Trust is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Real Estate Limited Partnership is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Real Estate Market is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Real Estate Mortgage Investment Conduit (REMIC) is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Real Estate Operating Company (REOC) is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Post-foreclosure property status in which the lender owns the asset because it did not sell successfully at the foreclosure auction.
RESPA is a U.S. mortgage settlement law governing disclosures, servicing notices, escrow rules, and certain referral practices.
Real Estate Valuation is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Recapture Rate is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Reconveyance is a legal transaction where a lender transfers the property title back to the borrower after the mortgage debt has been fully paid.
Time window in which a borrower or former owner may still reclaim foreclosed property by paying the required amount under applicable law.
A document in which the mortgagee (lender) acknowledges the sum due on a mortgage loan. It is used when mortgaged property is sold and the buyer assumes the debt.
REFI refers to mortgage loans originating from the refinancing of existing debt.
Refinancing is the process by which a business or individual revises the interest rate, payment schedule, and other terms of a previous credit agreement.
A Release Clause in a mortgage that allows the property owner to pay off a portion of the mortgage indebtedness, thereby freeing part of the property from the mortgage lien.
Release of Mortgage is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Release Provision is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
A Real Estate Limited Partnership (RELP) is a specialized form of business entity that facilitates investments in real estate.
A renegotiated-rate mortgage lets borrower and lender reset interest-rate terms at scheduled intervals instead of keeping one fixed rate.
Rental Income is the revenue earned by property owners from leasing their real estate to tenants.
Rental Property is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
An index measuring price changes of the same property over multiple transactions, providing insights into real estate market trends.
A methodology used in constructing the Case Shiller Index that focuses on tracking the price changes of the same properties over time.
Repeat-Sales Methodology is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Replacement Reserve is a property-income measure used to evaluate rental performance, occupancy, operating cash flow, or valuation support.
Reproduction Cost is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Resale Price refers to the anticipated selling price of a property at the end of a specified projection period, commonly used in investment performance projections.
Resale proceeds are the amount a former owner receives upon a sale after paying transaction costs, remaining debt, and sometimes income taxes.
Revaluation is a property-title concept used to evaluate ownership claims, liens, and real-estate collateral risk.
Revaluation Clause is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Mortgage that lets an older homeowner draw on home equity without a standard monthly repayment obligation while occupancy rules are still met.
Reversionary Value is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Borrower right to reclaim mortgaged property by paying the required amount before foreclosure sale and, in some places, for a limited time after sale.
A Sale Leaseback (or Sale-and-Leaseback) is a financial transaction in which one party sells an asset and then leases it back from the buyer.
Satisfaction of Mortgage is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
An instrument for recording and acknowledging the final payment of a mortgage loan, confirming that the lender acknowledges the debt has been satisfied.
Dive into the intricacies of second liens or second mortgages, their uses, types, historical context, and special considerations.
Mortgage that sits behind the first mortgage in repayment priority and lets owners borrow against home equity with added lender risk.
Secondary Financing is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Secondary Mortgage Market is a secondary mortgage-market concept used to analyze securitization, agency support, and investor risk.
A secondary residence, also known as a vacation home or second home, is any property owned by an individual that is not their main home.
Mortgage structure in which scheduled payments include both principal and interest so the balance is fully repaid by the end of the term.
Servicing is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Settlement date is the date a securities or real estate transaction closes and payment, delivery, or ownership transfer is completed.
Mortgage structure that offers more favorable initial loan terms in exchange for the lender's contractual share of future home appreciation.
Mortgage arrangement in which another party helps fund the purchase in exchange for a contractual claim on future home equity or appreciation.
Distressed home sale in which the property is sold for less than the mortgage balance and the lender agrees to accept the proceeds.
A simultaneous exchange is a property exchange in which relinquished and replacement properties transfer at the same time.
Soft money is a multifaceted term often used in finance, real estate, and government sectors.
Property-transfer structure where the buyer takes title subject to an existing mortgage without formally taking over the debt in the same way as an assumption.
A subordinate mortgage refers to a loan that is secondary to a first mortgage in terms of repayment priority.
A subordination clause is a provision in a mortgage agreement that allows subsequent liens or mortgages to take precedence over the first mortgage.
Subprime Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Subprime Mortgage Crisis is a mortgage or real estate finance concept used in property financing, underwriting, valuation, or ownership analysis.
Sweat equity refers to the non-financial investment that employees, entrepreneurs, or owners contribute to a project, typically through their labor, time, and effort.
Syndicated Investment is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
Syndication is a method of selling property whereby a sponsor, or syndicator, sells interests to investors. This can take various forms, including partnerships and corporations.
Take-Out Loan is a construction-finance concept used to fund development costs, draws, inspections, and project risk.
Tax foreclosure is a legal process initiated by a taxing authority to enforce a lien against property due to the nonpayment of delinquent property taxes.
A tax lien is a legal claim imposed by a government entity against the assets of an individual or business owing unpaid taxes.
A tax-deferred exchange postpones recognition of gain when qualifying property is exchanged under applicable rules.
TBA Transactions refer to trades in mortgage-backed securities where the specific securities to be delivered are not known at the time the trade is made.
Terminal Capitalization Rate is a real-estate valuation metric used to connect property income, price, yield, and investor return expectations.
Total Debt Service (TDS) Ratio is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
Traditional REIT is a real-estate investment trust concept used to evaluate property income, distributions, and public market exposure.
TRID combines mortgage loan estimate and closing disclosure rules for clearer borrower cost and term disclosure.
A trust account is a separate account used to hold funds or assets for someone else, whether in brokerage, legal, or estate-planning settings.
Public foreclosure sale conducted by a trustee under a deed of trust after required default and notice steps have been completed.
An underwater loan or mortgage refers to a situation where the remaining balance of the loan exceeds the value of the collateral.
Upfront charges are fees paid before or at closing, affecting a borrower's cash-to-close and effective financing cost.
One-time FHA mortgage-insurance charge usually assessed at closing and often financed into the starting loan balance.
UPREIT is a mortgage or real estate finance term used in property financing, underwriting, securitization, valuation, or ownership analysis.
Government-backed rural mortgage designed for eligible low-to-moderate-income borrowers, often allowing no-down-payment home financing in qualifying areas.
USDA streamlined refinancing is a mortgage-refinancing option specifically designed for homeowners who originally financed their home purchase with a USDA loan.
Using a Pledged Asset for Mortgage is a mortgage underwriting concept used to evaluate borrower risk, approval standards, and loan eligibility.
Form commonly used to request a VA Certificate of Eligibility for home-loan benefits.
Government-guaranteed mortgage for eligible veterans, service members, and some surviving spouses, often allowing low-down-payment or no-down-payment home financing.
Federal guaranty behind VA home loans that reduces lender risk and enables favorable mortgage terms for eligible borrowers.
Valuation Analysis is a real-estate valuation concept used to estimate property value, market support, or appraisal assumptions.
Mortgage whose interest rate changes over time based on an index, benchmark, or lender-set variable rate.
A variable-rate loan has an interest rate that changes over time with a benchmark, lender formula, or contract reset rule.
Veterans Affairs Mortgage is a mortgage agency concept tied to secondary-market standards, guarantees, or housing finance liquidity.
Vintage in Mortgage-Backed Securities is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Weekly Mortgage Applications Survey is a housing-market data concept used to track property prices, affordability, demand, or market cycles.
Weighted Average Coupon (WAC) is a mortgage-backed securities concept used to evaluate cash flows, prepayment risk, and secondary-market exposure.
Wet Loan is a mortgage servicing concept used to manage payments, escrow accounts, borrower communication, or loan administration.
A workout refers to an agreement between a property owner and a lender aimed at avoiding foreclosure or bankruptcy following a loan default.
A wrap-around loan is a specialized finance structure used predominantly in real estate transactions, particularly in owner-financed deals.
Seller-financed mortgage that wraps a new loan around an existing underlying mortgage instead of paying the older debt off at sale.
Yield spread premium is lender-paid broker compensation tied to a loan rate above a baseline or par pricing level.
Zero-Coupon Mortgage Explained is an adjustable-rate mortgage concept used to evaluate payment reset risk, index exposure, and loan pricing.
Foreclosure failure pattern in which the borrower vacates the home but title never transfers, leaving ownership burdens behind.