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Loan term
Loan term The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 15 or 30 years.
RELATED TERMS--------------------------------------
Note
A written instrument acknowledging a debt and promising payment
Borrower
A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Mortgage
A legal document pledging property as security for the payment of a loan.
Term
The length of time in which a loan is to be paid off.
SIMILAR TERMS--------------------------------------
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Loan 401(k)-403(b)
Some administrators of 401(k)-403(b) plans allow for loans against the monies you have accumulated in these plans.
Loan 403(b)
An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 403(b) plans are provided by employers that are not for profit organizations.
Loan 80-10-10
A combination of an 80 percent loan-to-value first mortgage, a 10 percent home equity loan and a 10 percent down payment.
Loan application
A lender's initial sourse of information on a borrower-applicant and the collateral involved; stipulates the amount of money requested and repayment terms.
Loan application fee
A sum charged by a lender for accepting a document in which a prospective borrower details his or her financial situation to qualify for a loan.
Loan broker listing
A mortgage loan broker's contract with a buyer to obtain a loan.
Loan commitment
A lender's agreement to lend a specified amount of money which must be exercised within a set time limit.
Loan consolidation
When one large loan is taken out to pay off a variety of smaller loans held with different providers. A mortgage can be used for this purpose and in some cases can work out cheaper as mortgage rates tend to be cheaper than personal loan interest rates.
Loan constant
The annual payment required per dollar of a mortgage loan, including principal and interest.
Loan correspondent
A person or entity that acts for a lender in arranging loans or the sale of loans.
Loan discount-premium fees
Fees that borrowers pay (sometimes seller will pay for borrower) that adjust to the yield requirement of the investor. Loan discount denotes an investor yield requirement higher than the note rate. Loan premium denotes an investor yield requirement lower than the note rate.
Loan documents
Documents prepared by a lender in conjunction with granting the loan to the borrower; may include a promissory note, deed of trust, and required loan disclosure documents.
Loan fee
Also known as points, discount points or origination fee, this is a one time charge by a lender as compensation for their services.
Loan fraud
Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.
Loan lock
Guarantee from a lender that a borrower will receive the interest rate in effect at the time of loan application.
Loan officer
A person that helps borrowers through the loan selection, processing, and closing of a mortgage loan.
Loan origination
How a lender refers to the process of obtaining new loans.
Loan origination fee
The cost to obtain a loan that is paid to the originating lender or broker.
Loan originator
A person who works for the lending institution whose job it is to meet with potential borrowers to discuss loan options, rates, etc.
Loan package
The information regarding a borrower and property necessary which is the basis for a lender's credit decision to extend or deny credit.
Loan processing fee
A charge levied by a lender for accepting a loan application and gathering the supporting paperwork.
Loan ratio
The amount of a loan to the value or selling price of real property.
Loan servicing
The function of collecting loan payments, managing the property tax and insurance escrows, foreclosing on defaulted loans and remitting payments to the investor-beneficiary.
Loan to Value Ratio (LTV)
The ratio of the mortgage loan amount to the property's appraised value or selling price, whichever is less.
PREVIOUS AND NEXT TERMS--------------------------------------
Loan originator
A person who works for the lending institution whose job it is to meet with potential borrowers to discuss loan options, rates, etc.
Loan package
The information regarding a borrower and property necessary which is the basis for a lender's credit decision to extend or deny credit.
Loan processing fee
A charge levied by a lender for accepting a loan application and gathering the supporting paperwork.
Loan ratio
The amount of a loan to the value or selling price of real property.
Loan servicing
The function of collecting loan payments, managing the property tax and insurance escrows, foreclosing on defaulted loans and remitting payments to the investor-beneficiary.
Loan term
Loan to Value Ratio (LTV)
The ratio of the mortgage loan amount to the property's appraised value or selling price, whichever is less.
Local authority search
This is carried out as part of the conveyancing process and can reveal any financial charges relating to the property as well as any planning decisions that could affect the property in the future.
Local taxes
In addition to federal and state taxes, those taxes imposed by local municipalities (such as a city or a county) for its government services.
Lock
A lender's guarantee that the mortgage rate quoted will not change for a specific period.
Lock and float
Rate programs offered by companies that allow borrowers to lock in the current interest rate on a mortgage for a specified period of time, while also letting them "float" the rate down if market conditions improve before closing.
This dictionary contains 6433 terms. |
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