Principle, interest, taxes and insurance. Also called
monthly housing expense.
A wall erected on a line between adjoining properties
for the use of both properties.
Generally, all things which are not real property; things
of a temporary or movable nature.
Points (Loan Discount Points)
Prepaid interest accessed at closing by the lender. Each
point is equal to 1 percent of the loan amount. For example, 2 points
on a $100,000 mortgage would be $2,000.00 The IRS considers points to
be a form of prepaid interest which means they can be deducted from
taxable income. Lenders often require that the borrower pay one or two
points at closing in exchange for a lower mortgage rate (the lender's
target APR remains the same).
Power of Attorney
A legal instrument which authorizes another person to
act, either a specific act or generally, in the stead of the person
drawing the instrument.
Expenses necessary to create an escrow account or to
adjust the seller's existing escrow. Can include taxes, hazard insurance,
private mortgage insurance and special assessments.
Paying off a loan before its due date.
Money charged for an early repayment of a debt. Prepayment
penalties are allow in some form (but not necessarily imposed) in 36
states and the District of Columbia.
Any person, partnership, association or corporation who
authorizes or employs another, called the agent, to do certain acts
on his behalf.
The promissory note which is secured by the mortgage
or trust deed.
Private Mortgage Insurance (PMI)
Paid by a borrower to protect the lender in case of default.
PMI is typically charged to the borrower when the loan-to-value ratio
is greater than 80 percent. The Homeowners Protection Act of 1998 mandates
that a lender notify a borrower when the LTV falls below 80 percent,
at which time a borrower is allowed to cancel the PMI coverage.
The cause that results from an agent's employment in
the sale or leasing of property, finding a buyer.
The rights of ownership; the right to use, possess, enjoy,
and dispose of a thing in every legal way and to exclude everyone else
from interfering with these rights. Property is generally classified
into two groups; persona property and real property.
the public official in each county, whose office has
been created by statute, to whom title to real property is conveyed
by Trust Deed for the use and benefit of the beneficiary, who usually
is the lender.
Purchase Money Mortgage
mortgage given by the purchaser to secure a loan for
part or all of the purchase price. Such a mortgage becomes a lien on
the property simultaneously with the passing of title, and if immediately
recorded becomes prior to any lien against the purchaser.