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Mortgage Glossary O-RHere is a Continuation of the Mortgage Glossary, letters O through R. I hope you find this helpful and informative as well. Offer: An indication by a prospective buyer of a willingness to buy a home at a certain price; this is usually handled in writing Origination fee: This is the charge for originating a loan and it is often calculated in the form of a point system, then paid at the closing of the deal. PMI: Private Mortgage Insurance; privately-owned business ventures which offer both standard as well as special affordable mortgage insurance programs for qualified borrowers with down payments of less than twenty percent. Pre-approve: This is when the lender commits to lend to a prospective borrower. The commitment remains intact so long as the borrower continues to meet the various qualification requirements at the time of purchase. Prepayment: payment of the mortgage loan prior to the scheduled due date. This might be Subject to prepayment penalty. Principal: This is the amount borrowed from a particular lender; This does not include the interest or any other possible applicable fees. Refinancing: This means the paying off of 1 loan by obtaining another loan. This is often done to gain superior terms, especially regarding the interest rate. RESPA: The Real Estate Settlement Procedures Act. This is a law that is meant to protect the consumers from abuse during the residential real estate purchase as well as loan process by mandating that lenders must disclose all settlement expenses and relationships Real estate agent: Is an individual who is licensed to negotiate and/or arrange real estate transactions. The agent usually works for a real estate broker. |
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