chicago real estate glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Homes that are built entirely in a factory in accordance with a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). Manufactured homes may be single-or multi-section and are transported from the factory to a site and installed. Homes that are permanently affixed to a foundation often may be classified as real property under applicable state law, and may be financed with a mortgage. Homes that are not permanently affixed to a foundation generally are classified as personal property, and are financed with a retail installment sales agreement.
A percentage added to the index for an ARM to establish the interest rate on each adjustment date.
The current value of your home based on what purchaser would pay. An appraisal is sometimes used to determine market value.
The date on which a mortgage loan is scheduled to be paid in full, as stated in the note.
Merged Credit Report:
A credit report issued by a credit reporting company that combines information from the three major credit repositories.
Any change to the terms of a mortgage loan, including changes to the interest rate, loan balance, or loan term.
Money Market Account:
A type of investment in which funds are invested in short term securities.
A loan using your home as collateral. In some states the term mortgage is also used to describe the document you sign [to grant the lender a lien on your home]. It may also be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage is usually the purchase price of the home minus your down payment.
An individual or firm that brings borrowers and lenders together for the purpose of loan origination. A mortgage broker typically takes loan applications and may process loans, but generally does not use its own funds to close the loan. Mortgage brokers often act as independent contractors and not as an agent of the borrower or lender.
Mortgage Insurance (MI):
Insurance that protects lenders against losses caused by a borrower's default on a mortgage loan. MI typically is required if the borrower's down payment is less than 20% of the purchase price.
Mortgage Insurance Premium (MIP):
The amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company.
The lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing.
Mortgage Life Insurance:
A type of insurance that will pay off a mortgage if the borrower dies while the loan is outstanding; a form of credit life insurance.
The cost or the interest rate you pay to borrow the money to buy your house.
The institution or individual to whom a mortgage is given; the lender.
The owner of real estate who pledges property as security for the repayment of a debt; the borrower.
A mortgage loan on a building with more than four dwelling units.
Typically, buildings with five or more dwelling units.
Multiple Listing Service (MLS):
a clearinghouse through which member real estate brokerage firms regularly and systematically exchange information on listings of real estate properties and share commissions with members who locate purchasers. The MLS for an area is usually operated by the local, private real estate association as a joint venture among its members designed to foster real estate brokerage services.
A fund that pools the money of its investors to buy a variety of securities.
Prepared by and used with the permission of the FTC.