Abstract Of Title
A written history of all the transactions bearing on the title to a specific tract of land. An abstract of title covers the period from the original source of title (often the original land grant from the United States Government to an individual) to the present time and summarizes all subsequent documents that have been recorded against that tract.
Amortization Periods
A timetable for payment of a mortgage that shows the amount of each payment that should be applied to interest and principal and the remaining unpaid principal balance that will result from the application. (Source: FNMA Servicing Guide, Glossary)
Application
A form used to apply for a mortgage loan and to record pertinent information concerning a prospective borrower and the proposed security for the loan.
APR
APR (Annual Percentage Rate) reflects the estimated effective cost of your loan on a yearly basis taking into account such items as interest, mortgage insurance, most closing costs, discount points and loan origination fees. Disclosure of APR is required by law to help you evaluate the true cost of borrowing money over the life of your loan. Your monthly payment is not based on the APR, but instead on the interest rate specified in the mortgage note.
Appraised Value
An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data.
Appraisal
An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data. What is the appraised value of your property?
Cash Available
Your housing affordability depends on the amount of money you have for the down payment, closing costs and a cash reserve. The more you can come up with, the less you will have to borrow.
Cash Flow Basis
This calculation shows when your monthly payment savings exceed your estimated closing costs and discount points. It does not consider the tax impact or differences in principal balance reduction between your current loan and the refinance suggestions. You can use the Amortization Schedule Calculator to compare principal reduction.
Cash for Transaction
Enter the amount your want to use toward closing costs (discount points and fees) and/or to reduce your loan balance. In situations where your loan balance is above the conforming amount, reducing the principal may allow you to get a lower rate. Enter zero if you want a no-point loan and/or to finance the closing fees.
Cash required to close
Funds needed by borrower to cover down payment, closing costs, Cash reserves, and prepaids.
Cash Reserve
Funds that the borrower will have remaining after all expenses (down payment, closing costs & prepaids) of the transaction have been paid. These reserve funds will be available in the event of any unexpected house-related or other expenses.
Closing
The conclusion or consummation of a transaction. In real estate, closing includes the delivery of a deed, the signing of notes and security instruments, and the disbursement of funds necessary to the sale or loan transaction. Also referred to as settlement.
Closing Costs
The money paid by borrowers and sellers to effect the closing of a home loan. This normally includes an origination fee, discount points, title insurance, survey, attorney's fee, and more.
Commitment
A promise made by a lender to supply financing if certain conditions are met by the borrower.
Cost
If you select "I'll pay the costs", you will be responsible for paying with cash at closing for applicable third-party closing costs, which include appraisal, credit report, title (a.k.a. lien search), recording fee, and closing/attorney fees. If you select "Include costs in the rate", Countrywide will pay all applicable third-party closing costs in exchange for a higher rate or by financing those closing costs.
Courier/Express Mail
Third party fee paid by the borrower for any courier or express mail expense incurred in connection with the transmission of documents related to the mortgage loan.
Credit Rating
An expression of creditworthiness based upon present financial condition and past credit history.
Credit Report
A detailed account of the credit, employment and residence history of an individual used by a prospective lender to help determine creditworthiness. Credit reports also list any judgments, tax liens, bankruptcies or similar matters of public record entered against the individual.
Current PITI
This is an abbreviation for a monthly payment that includes principal, interest, taxes and insurance. In mortgage lending it is common for the monthly mortgage payment to include not only the principal and interest payment on the loan, but an escrow amount for real estate taxes and hazard insurance as well.
Down Payment
Your housing affordability depends on the amount of money you have for the down payment. The more you can come up with, the less you will have to borrow.
Down Payment Percent
The down payment percentage is calculated by dividing the amount you plan on putting down on the purchase of a home by the selling price. An example would be: If the sale price of the property is $100,000 and you plan on giving a down payment of $20,000, the down payment percent would be 20% ( 20,000 / 100,000 = .20 or 20%).
Escrow/Attorney/Title
A neutral third party who carries out the instructions of both the buyer and seller to handle all the paperwork of settlement or "closing." You will either use an escrow company, an attorney or a title company depending on which state you reside in.
Excluded Loan programs
These are loan programs you may not be interested in applying for. Clicking in one of these boxes indicates loan programs you are NOT interested in seeing information on.
Extra Payment
Aside from the current amount of rent you pay and other bills, how much more can you afford to pay monthly?
Filing Status
Please enter here whether you file your income taxes as single, married, separated or Head-of–Household.
Flood Check
A survey conducted to determine whether a property is in a flood zone.
Help Links
Help is always a click away! If you need additional information on any of the inputs for a given calculator, simply click on the underlined label for the input field and a window explaining the item will appear.
Lending Guidelines
Every loan program has different guidelines. Guidelines are used to meet Federal, State and Local laws and enforce minimum requirements by the lender. Guidelines ensure that prospective borrowers won't purchase a home that they won't be able to afford.
Limiting Factor
Limitations such as Income, Program Guidelines, Debt, and Cash that restrict your ability to get a higher loan amount.
Loan Amount
This is the actual amount borrowed from the lending institution including any financed fees, debt consolidation, etc.
Loan Balance
What is the current outstanding balance (the amount you owe) on your present mortgage loan?
Loan Program
Please choose a loan program from the drop down list, e,g. Fixed 15 Years, Fixed 30 Years, ARM Adjusts Yearly, etc…
Loan Program
1- Heloc 10 year draw, 15 year Repay- you can draw money out of your Heloc Credit line for 10 years, and you have 15 years to pay for it in full.
2- Heloc 3 year draw, 10 year Repay- you can draw money out of your Heloc Credit line for 3 years, and you have 10 years to pay for it in full.
Loan Type
Please choose a loan type from the drop down list, e.g. Fixed Rate, "Fixed Period" ARM, ARM Adjusts Yearly, etc…
Maximum Amount
If you are unsure of what percentage you will be putting down on your home purchase, you may put the dollar amount you will be using as a down payment here.
Maximum Points
This is the maximum points you are willing to pay. Points are fees charged by a lender on the money borrowed. Typically the more points paid, the lower the rate of interest a customer pays on a given loan product. One point equals one percent of the loan amount. They are also sometimes referred to as discount points.
Monthly Debt
Please enter the combined debts for all borrowers. Enter the following: monthly credit card bills, car loans, car leases, student loans, alimony, etc. Do not enter your current rent or mortgage payment.
Monthly Income
Based on your earnings and debt, lenders calculate your approximate borrowing limit. Mortgage payments, property taxes, hazard insurance, etc., are known as housing expenses. Car payments, student loans and credit cards are known as other debts. The sum of your housing expenses and other debts should not exceed 45% of your monthly gross income. If it does, don't panic, it probably will only reduce the amount of mortgage for which you may qualify.
Monthly Rent
If you are currently renting the property you reside in, here is where you would enter the amount you pay in monthly rent.
Mortgage Tax
A city, county, or state tax that is assessed in the purchase and/or sale of real estate. A real estate tax may also be assessed when financing is obtained.
Notary
An official authorized by law to attest and certify certain documents by his or her hand and official seal.
Original Term
The term of a home loan is the number of years the home loan is amortized for. Home loans are generally amortized over 15, 20, 25, 30 or 40 years.
Payment (P&I)
Your monthly mortgage payment, including principal and interest, but excluding tax and insurance payments.
Payoff Number of Years
If you want to see what your payment would be in order to pay off your loan in a specified number of years, enter the payoff years here.
Points
Points are fees charged by a lender on the money borrowed. Typically the more points paid, the lower the rate of interest a customer pays on a given loan product. One point equals one percent of the loan amount. They are also sometimes referred to as discount points.
Property Value
LTV or Loan to Value Ratio refers to the relationship between the unpaid principal balance of the mortgage and the property's appraised value (or sales price if it is lower).
Rate
The annual rate of interest on a loan.
Recording
The act of entering or recording documents affecting or conveying interest in real estate in the recorder's office established in each jurisdiction. Depending on jurisdictional law and/or practice, until recorded, a deed or mortgage is not generally effective against subsequent purchasers of mortgages. (Source: GNMA Document Custodian Manual, Glossary.) Filing a document as public record is giving constructive notice to the world of the existence of the document and its contents.
Start Date
The date you want to use as the start date for the amortization, usually the date you closed on your loan or today's date.
Start Month
The date you will begin adding an extra dollar amount to your regular monthly payments. Enter the payment number from 1 to 360 (e.g., if you will start paying extra principal at the start of year 5 of a 30 year loan, enter "49".)
Sub-Escrow
Are fees charged by the escrow company for allowing the borrower to be able to sign all the loan documents in the Escrow office instead of having to go to the lenders office.
Survey
A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any improvements.
Tax Bracket
Please select the tax bracket you fall under. If you are unsure what tax bracket you are in, you may want to speak with an accountant to find out.
Tax Savings
This is the amount of money you save in income taxes. You save this money because in most cases the interest you pay on your home loan is tax deductible! (Ask your tax advisor).
Tax Service
A fee collected to set up a third-party to monitor the borrower's property tax payments to ensure that the payments are made on time, and to prevent tax liens from occurring.
Term
The term of a home loan is the number of years the home loan is amortized for. Home loans are generally amortized over 15, 20, 25, 30 or 40 years.
Termite Report
A report that results from an inspection by a professional to determine if the property has termites.
Title Binder
Written evidence of temporary title insurance coverage that only runs for a limited time and must be replaced by a permanent policy.
Title Exam
An examination of records to ensure that the seller is the legal owner of a property and that there are no other liens/claims against the property.
Title Insurance
The process of determining the history of the ownership of a property in order to determine if the seller has legal ownership in the property they are selling.
Title Insurance Endorsements
This is an endorsement of insurance against losses that may result from claims of previously unknown ownership in insured property.