What is a Borrowing Entity Type? - Definition
A Borrowing Entity Type is a description of the borrowers' legal form of ownership for a Real Estate Property. There are many forms of a Borrower Entity Type. Some

What is a Borrower? - Definition
A Borrower is a person who either applies for, or recieves a mortgage loan. A Borrower must have the intent and ability to repay the mortgage in full. This is generally

What is Book Value? - Definition
The Book Value of a real estate property refers to the current value of that property as an asset. It is calculated by subtracting the depreciation and any other

What is a Blanket Mortgage? - Definition
A Blanket Mortgage is a mortgage loan that is held against two seperately deeded pieces of real estate property. A Blanket mortgage is different then having

What is a Bi-Weekly Payment Plan? - Definition
A Bi-Weekly Payment Plan is a mortgage repayment plan that is offered by many servicing companies. The repayment schedule is based on paying half payments every two weeks. Which provides a thirteenth

What is a Bill of Sale? - Definition
A Bill of Sale is a document that tranfers the title of a real estate property from a seller to a buyer. This written agreement will alter the deed of the

What is a Good Faith Estimate? - Definition
A Good Faith Estimate is an estimate of the costs associated with a Real Estate Loan. Generally it is a disclosure that is only an Estimate (the figures are subject to change based on changes to the loan application) of the costs that is to be provided to the borrower prior to

What is a Basis Point? - Definition
A Basis Point (also known as bps or bips) is 1/100th of of one percent. A Basis Point is generally used in reference to interest rates and additions or subtractions done to interest rates. For

What is a Bankruptcy? - Definition
A Bankruptcy is a legal proceeding that alleviates an individual/entity of his or her debt when the individual is no longer able to make payment on their debts. There are several different types of bankruptcies.

What is a Balloon Mortgage? - Definition
A Balloon Mortgage is a loan in which after a set term, the entire balance of the loan comes due. This type of loan generally has a lower interest rate, and has

What is a No Documentation Loan? - Definition
A true No Documentation loan has no income, asset, or employment information listed on the 1003 (loan application). This type of documentation generally requires a clean credit profile with high credit scores, and also is limited to

What is Light Documentation? - Definition
Light Documentation is typically used by alternative lenders to prove a shorter term of income with bank statements. Most lenders will use six months of bank statements to verify the income. This

What is an Assumption Fee? - Definition
An Assumption Fee is a fee paid to a lender when a person assumes a property from another. The fee is typically paid by the buyer to the mortgage holder after the

What is Assumability? - Definition
The term Assumability refers to a mortgage that allows for the transfer of the mortgage and deed from a buyer to seller with out a purchase transaction. An

What is an Assumption? - Definition
An assumption is where a purchaser takes over (or assumes) the responsibility of paying an existing mortgage. This typically requires permission from the current lender. The seller should also

What is Assisted Living? - Definition
Assisted living is a long-term care facility designed for people who have the ability to function mostly on their own, but need a certain amount of assistance.

What is an Amenity? - Definition
An ammenity (or ammenities) applies to the non-monetary benefits of property ownership. Some examples of different ammenities include garages, pools, spas or

What is an Asset? - Definition
An asset is an item that holds a value that can increase or decrease, and is owned by a person, entity, or corporation. An asset can be used to help determine a persons net worth, and

What is Assessed Value? - Defintion
Most Real Estate properties have two values. The assessed value is the value given to the property by the local authorities to determine the real estate taxes

What is an Annuity? - Definition
An Annuity is a form of an investment that is typically provided by an insurance company. An annuity guarantees payments of pre-set amounts and pre-set times,

What is an Anchor? - Definition
When dealing with investment type properties with rental incomes, an anchor is a long term tenant, that is financially stable and generally has a good credit rating.

What is Average Annual Occupancy? - Definition
The Average Annual Occupancy refers to rental and investment (multi-unit) type properties. This Average gives the percentage of units that are rented out with in a years period of time. It also

What is APR? - Definition
APR is an acronym for Annual Percentage Rate. The annual percentage rate is the interest rate that reflects the cost of a mortgage in terms of a yearly rate. The yearly rate includes the note rate and

What is an Afford Ability Analysis? - Definition
An AFFORD ABILITY ANALYSIS is an analysis of a buyer’s ability to afford the purchase of a home. The analysis reviews income, liabilities, available funds, and considers the type of mortgage you plan

What is an Adjustment Period? - Definition
An Adjustment Period begins with the first adjustment date of an adjustable rate mortgage. It is the period time between adjustment dates. It applies to

What is an Adjustment Date? - Definition
An adjustment date is the date on an adjustable rate mortgage that the interest rate changes. This date is frequently predetermined, and the amount of the adjustment is pre-determined by the

What is an Adjusted Basis? - Definition
The term "ADJUSTED BASIS" is a tax related term that is used to describe how one calculates the profit, or the loss from the sale or exchange of property. The equation is calculated by taking the

What is an Acreage? - Definition
An Acreage is a unit ofmeasure for land (a two dimensional measure). An acre(age) is can be defined by the following measures of 160 square rods, 10 square chains, 4840 square yards, or 43,560 square

What is an Acceleration? - Definition
An ACCELERATION is when the mortgagee (lender) has the ability to demand the immediate repayment of the mortgage loan balance in the case of the mortgagor (borrower)defaulting on the terms of the

What is an Acceleration Clause? - Definition
An ACCELERATION CLAUSE allows the lender to speed up the rate (amortization schedule) at which your loan comes due. The lender may also have the ability to demand immediate repayment of your loans