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Mortgage Glossary H-MHere is a Continuation of the Mortgage Glossary, letters H through M. These are the most important words and terms that you need to know if you desire to make a sound decision regarding home loans or mortgages generally, Home inspection: an examination of the structure as well as mechanical systems to determine a home's overall safety; makes the potential home buyer aware of any repairs that may be needed, whether the home is for personal or business use. Home warranty: This offers protection for mechanical systems as well as attached appliances against unanticipated repairs that are not covered by the home owner's insurance; , the coverage extends over a certain time frame but does not cover the home's actual structure. Index: This is a measurement which is used by lenders to ascertain changes to the Interest rate that are charged on an adjustable rate mortgage. Judgment: a legal decision; when mandating debt repayment, the judgment might also include a property lien that secures the creditor's claim by providing a collateral source. Lien: a legal claim against property that has to be satisfied When the property is sold Loan-to-value (LTV) ratio: The percentage that is calculated by dividing the amount borrowed by the price of the home to be bought; the higher the LTV, the less cash a borrower has to pay as a down payment. Margin: This is the amount that the bank adds to an index to determine the interest rate of an ARM (adjustable rate mortgage). Mortgage banker: The firm which originates loans and then resells them to secondary mortgage lenders (like Fannie Mae, for instance). |
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