Acknowledgment: Formal Declaration before a public official that one has signed a document. A Notary Public acknowledges the person's signature on the document.
Adjustable Rate Mortgage (ARM): A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with the market conditions. The rate of interest is the sum of the index plus a margin (the margin remains fixed for the life of the loan).
Community Property: Property acquired by husband and wife, or either, during marriage, when not acquired as the separate property of either.
Deed: Formal written document transferring title to real estate.
Deeds of Trust: A three-party instrument between a borrower called the trustor; a lender called the beneficiary and a neutral third party called a trustee. The deed of trust is the instrument that is recorded to give added assurance that the promissory note will be paid when due.
Fixed Rate Mortgage: A mortgage where the interest rate is fixed for the life of the loan.
Form W-9: A person who is required to file an information return with the IRS must give their taxpayer id number.
Form 4506: This form is needed to obtain a tax return transcript.
Grant Deed: A deed which conveys interest in the property to another party.
HUD 1 Settlement Statement: A closing document required by HUD (Housing and Urban Development) that outlines the settlement cost of a loan.
Interest Rate: The percentage of an amount of money that is paid for its use for specific time.
Interspousal Grant Deed: A deed that is used for conveyance of property, interest or otherwise between husband and wife.
Impound Account: An account maintained by the lender for payment of property taxes, hazard insurance, mortgage insurance or other related expenses. The borrower pays these premiums to the lender in monthly payments along with the principle and interest. Also known as an escrow account.
Joint Tenancy: An undivided interest in property taken by two or more joint tenants. The interests must be equal, accuring under the same conveyance and beginning at the same time.
Jurat: A certification on an Affidavit declaring when, where, and before whom it was sworn.
Nonrecurring Closing Costs: One time costs charged in conjunction with the loan.
Note: A signed instrument acknowledging a debt and a promise to repay per the terms outlined.
Notice of Right to Cancel: The borrower has a legal right under federal law to cancel the transaction, within three business days from the day they sign the documents, the day they receive the Truth in Lending disclosure, or the day they receive the copy of the notice of right to cancel. See Rescission Calendar
Prepayment Penalty: A charge for the payment of a mortgage or trust deed note before it is actually due.
Quitclaim Deed: A deed that conveys whatever present right, title, or interest the grantor may have.
Recurring Closing Cost: Costs that recur after the loan has closed.
Sole and Separate Property: Property owned before marriage or that was acquired afterward by gift, bequest, devise, or descent.
Subordination Agreement: An agreement under which a prior trust deed is made inferior to an otherwise junior lien.
Tenancy in Common: Ownership of property by any two or more persons in undivided interests.
Title Insurance: Assurances as to the condition of title. It protects the owner or other insured, such as a lender, against loss or impairment of title arising from defects in title.
Truth in Lending Disclosure, also called TIL: A federal law designed to show the borrower the total cost of a loan. More info about Truth in Lending Disclosure
