Primary Residence: A dwelling where one actually lives and is considered as the legal residence for income tax purposes. Principal and Interest to Income Ratio: The ratio, expressed as a percentage, which results when a borrower's proposed Principal and Interest payment expenses is divided by the gross monthly household income. Processing: The preparation of a mortgage loan application and supporting documents for consideration by a lender.
Purchase Transaction Documents : The aggregate term for independent third party documentation pertaining to the subject property. This includes property appraisal, termite inspection report, preliminary title report, real estate transfer disclosure, roofing, geological, foundation, septic inspections, and overall home inspection. Reconveyance: The transfer of the title of land from one person to the immediate preceding owner. This instrument of transfer is commonly used to transfer the legal title from the trustee to the trustor after a deed of trust has been paid in full.
Refinancing: The process of paying off an existing loan and establishing a new loan. Renovation: The restoration of the primary residence. Generally, this includes repairs, improvements and additions to the permanent structure of the primary residence. Reserves: Liquid or near liquid assets that are available to a borrower after the mortgage closes. Right of Rescission: The right to cancel a contract and restore the parties to the same position they held before the contract was entered into.
For a refinance transaction, a borrower has three working days from the signing of the loan documents to cancel the loan without penalties. The right to rescind does not apply to purchase transactions.
Servicing: The collection of payments and management of operational procedures related to a mortgage loan. Short-Term Investment Pool STIP : STIP was established in fiscal and is an interest-only cash investment pool in which all University fund groups participate, including current funds earmarked to meet payrolls, operating expenses, and construction at all campuses and teaching hospitals of the University.
Subordination Agreement: An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property. The University may, as its option, refuse to sign a Subordination Agreement.
Tenants in Common: Joint ownership by two or more persons giving each tenant an interest and rights in a property, these interests need not be equal in quantity or duration. Title Insurance: A policy, usually issued by a Title Insurance company, which insures a homebuyer and the lender against errors in the title search.
Trustee: One who holds legal title to a property for the benefit of another, or for the purpose of securing performance of an obligation. Skip to Main Content. Office of Loan Programs. Loan terminology glossary The terms and definitions that follow are meant to give simple, informal meaning for words and phrases you may see on our Web site that may not be familiar to you. Back to top Balloon Payment: An installment payment on a promissory note - usually the final one for discharging the debt - which is significantly larger than the other installment payments provided under the terms of the promissory note.
Beneficiary: The lender on the note secured by a deed of trust. Back to top Close of Escrow: The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Back to top Date of Recordation: The date on which a deed of trust is officially entered on the books of the county recorder in the county in which the property is located. Back to top Employee: An Appointee who has actively begun to serve in his or her full-time position.
Typically, this is NOT an insurance policy, but a commitment from the insurance company to provide a policy for a specific property at a specific time and premium amount Back to top Faculty Recruitment Allowance Program: A University of California program authorizing the granting of special housing allowances to assist with down payments, mortgage payments, and other housing related costs. Gross Monthly Income: The monthly salary amount before taxes, withholdings, and expenses.
Back to top Hazard Insurance: A contract where an insurer, for a premium, undertakes to compensate the insured for loss on a specific property due to certain hazards. Back to top Joint Tenancy: Joint ownership by two or more persons giving each tenant equal interest and equal rights in the property, including the right of survivorship. Back to top MOP-Calculator: A web-based calculator for potential applicants to determine whether they might meet the minimum requirements for a MOP loan.
Back to top Office of Loan Programs OLP : Located within the Office of the President's Capital Asset Strategies and Finance Department, the Office of Loan Programs is responsible for the design, delivery and management of housing assistance programs for recruitment and retention of faculty and senior managers. Back to top Participant: The term "Participant" shall mean an Appointee who has been designated as an eligible Applicant and Primary Borrower. Principal: The amount of debt, exclusive of interest, remaining on a loan.
Back to top Reconveyance: The transfer of the title of land from one person to the immediate preceding owner. Back to top Servicing: The collection of payments and management of operational procedures related to a mortgage loan.
Back to top Tenants in Common: Joint ownership by two or more persons giving each tenant an interest and rights in a property, these interests need not be equal in quantity or duration. Funds will be called as borrowed when an organization or an entity gets funds from another entity which will be repayable after a certain period and will be carrying an interest rate. The purpose and the key objective of lending money are to gather interest income on the amount of money or say the principle lent to some person for a certain time.
The purpose or the objective of borrowing would be to use the money for specific purposes such as medical expenditure, home construction, hospital expenses, private functions, school education, higher education, and the like. Borrowing means one would be taking up and exchanging something else and thus paying something premium.
In lending, the intention is to earn something, and that one has access with himself. In borrowing the intention is to get something that one does not possess and is ready to pay the same premium.
The Lender is the one who sees himself as the key in the transaction as he believes to have the upper hand as there is more of interest from the borrower side. The borrower seems to have the upper hand as he has a key interest in the object he has borrowed. For lending, different words will resemble a world of finance like going long in an asset giving funds to the company and taking stock of that company.
Others would include Reverse Repo where large institutions lend money for a day in exchange for collateral. For borrowing the terms that will be used would be a short sale where one borrows security that is not purchased by the investor and then, later on, returns the same, but he does this to get money and use it for a couple of days.
Similarly, in the case of Repo, the institutions borrow money sells the securities for a day again in exchange for collateral. Student Loan Interest Rate vs. Student loan interest rates and APRs can often be the deciding factor with which Read Article. Variable vs. It's important to understand the difference between student loan variable intere
0コメント