Epolicy Network

S.I. / Statement of Information – The form the customer fills out for the title company giving further identification of the customer. This allows the title company to eliminate debts and liens owed by people with similar names. Second Mortgage – A mortgage which is entered after the primary loan. Called a second due to […]

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P & I – Principal and Interest. This refers to the principal and interest portions of the monthly mortgage payment. P & L / Profit and Loss – A statement of a businesses gross income, cost of goods, operating costs and net profit or loss. P.I.T.I. – Principal, interest, taxes and insurance. The complete monthly […]

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Margin – The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment. Market Value – The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property […]

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Hazard Insurance – A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like, it would not cover earthquake, riot, or flood damage. Homestead – The dwelling (house and contiguous land) of the head of the family. Some states grant statutory exemptions, protecting homestead […]

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Farmers Home – Administration Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere. (FMHA) Federal Home Loan Mortgage Corporation – Also called Freddie Mac, is a quasi-governmental agency that purchases conventional mortgages from insured depository institutions and HUD-approved mortgage bankers. (FHLMC) Federal Housing Administration – A division of the […]

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D.R. / Debt Ratio – The customer’s monthly obligations divided by their monthly gross income. Deed – Legal document which conveys the title to a property. Deed of Trust – A document used which pledges real property to secure a debt. In some cases a deed of trust can replace a mortgage. Default – Failure […]

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Back End – This refers to the debt-to-income ratio calculated using principal, interest, taxes, insurance and consumer credit obligations divided by gross monthly income. It is expressed as a percentage. Balloon Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of […]

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1003 – Uniform Residential Loan Application. A & D LOAN – Acquisition and development loan- a loan for the purchase of raw land for the purpose development. Abstract Title – A written history of the ownership of a parcel of land. Acceleration Clause – Allows the lender to speed up the rate at which your […]

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