Buyer's Information

• Graduated-payment mortgage: A mortgage that starts with low monthly payments and increases at a predetermined rate.
• Growing-equity mortgage: A mortgage loan in which the monthly payments increase by a specific amount each year, with the “Overpayments” applied to the principal.
• Installment debts: Long-term debts that usually extend for more than one month.
• Investor: The holder of a mortgage or the permanent lender for whom the mortgage maker services the loan. Any person or institution that invests in mortgages.
• Joint & Survivorship Deed: (Also known as “Warranty deed creating tenants in common with right of survivorship”) Upon death of one of the owners, title to the interest transfers “by contract” to survivors.
• Lease purchase agreement: Buyer makes a deposit for the future purchase of a property with the right to lease the property in the interim.
• Lien: A legal claim against a property that must be paid when the property is sold.
• Loan-to-value ratio: The relationship between the amount of a home mortgage and the total value of the property. Lenders may limit their maximum mortgage to 80-95 percent of value.
• Lock-in-rate: A commitment made by lenders on a mortgage loan to “lock in” a civilian rate pending mortgage approval. Lock-in periods vary.
• Market value: The highest price a buyer will pay for a property and the lowest price the seller will accept.
• Mortgage: One type of document used to make property the security for the payment of a loan.
• Mortgage broker: An individual or company that obtains mortgages for others by finding lending institutions, insurance companies, or private sources to lend the money; may also make collections and handle disbursements.
• Mortgagee: The lender of money or the receiver of the mortgage.
• Mortgagor: The borrower of money of the giver of the mortgage document.