At CarlyleMortgage.com, our mission is to
set a high standard in the mortgage industry. We are committed
to quality, personal customer service, we always put the people
we serve first. We adhere to the highest degree of integrity
in all of our business dealings. We are a small, family based
company who treats each and every one of our clients like a
person, not a number.
At CarlyleMortgage.com, you can always count on:
Fast Approvals
We use our top of the line technology to cut down on processing
time and can often give you a pre-approval within hours.
Free Pre-Qualifications and Consultations
Let us help you find the perfect program for you! We have a
variety of programs that are designed to help you, no matter
what your situation is!
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We've assembled some terms to help you
better understand mortgage financing. Please
feel
free to call
us for more information about our residential lending programs,
or apply now.
Abstract of title A written summary of the title history
of a particular piece of real estate.
Acceleration Clause A provision of a mortgage or note which
provides that the entire outstanding balance will become due
and payable in the event of default.
Adjustable Rate Mortgage (ARM) A mortgage in which the interest
rate is adjusted periodically, based on the movement of a financial
index.
Amortization Repayment of loan by installment payments. As
the payments are made, the debt is reduced so that at the end
of fixed period or term, no money will be owed.
Annual Percentage Rate (APR) The annual percentage rate refers
to the total cost of the loan, expressed as a yearly rate.
Application Fee That part of the closing costs pre-paid to
the lender at time of application to cover initial expenses.
Appraisal A report made by a qualified person as to the value
of a property as of a given date.
Assessed Value The value placed on a piece of real estate by
the taxing authority for the purpose of taxation. Also called
an assessment.
Assumption of Mortgage The purchaser takes over mortgage payments
for the balance of the loan, assuming primary liability. Unless
specifically released by the lender, the seller remains secondarily
liable.
Balloon Mortgage A mortgage with periodic payments that do
not fully amortize the loan. The outstanding balance of the
mortgage is due in a lump sum at the end of the term.
Bridge Loan A short-term loan secured by the equity in an as-yet-unsold
house, with the funds to be used for a down payment and/or
closing costs on a new house. There is no payment of principal
until the house is sold or the end of the loan term, whichever
comes first. Interest payments may or may not be deferred until
the house is sold.
Broker The person who, for a commission or a fee, brings parties
together and assists in negotiating contracts between them.
Buydown Money advanced by an individual (e.g. builder, seller,
buyer, lender, developer) to lower monthly mortgage payments
for a few years or the whole term.
Cap (interest rate) The maximum interest rate increase allowable
on an adjustable rate mortgage. Does not result in negative
amortization. See Negative amortization.
Cap (payment rate) The maximum payment amount increase allowable
on an adjustable rate mortgage. May result in negative amortization.
See Negative amortization.
Certificate Of Title A statement that shows ownership of property,
stating that the seller has clear legal title.
Closing The concluding day of the real estate transaction,
when title and deed pass from seller to buyer, the buyer signs
the mortgage and pays the purchase price and closing costs.
Closing Costs Expenses (over and above the price of the property)
incurred by buyers and sellers in transferring ownership of
a property. Also called "settlement costs."
Closing Statement A financial disclosure giving an account
of all funds received and expected at closing, including the
escrow deposit for taxes, hazard insurance and mortgage insurance
for the escrow account.
Commission An agent's or broker's fee for bringing the principals
together and helping to negotiate a real estate transaction,
often a percentage of the sales price or flat fee.
Commitment An agreement, frequently in writing, between a lender
and a borrower to loan money at a future date, subject to certain
conditions.
Comparables Refers to similar properties used for comparison
purposes in the appraisal process. These properties will be
reasonably the same size and location, with similar amenities
and characteristics, so that the approximate fair market value
of the subject property can be determined.
Condominium Ownership of a single unit in a multiunit building
or complex of buildings. Along with this goes a share of ownership
of the common areas.
Contingency A condition that must be met for a contract or
a commitment to remain binding.
Conventional Mortgage Any mortgage loan that is not insured
by FHA, guaranteed by VA, of funded by a government authorized
bond sale or grant.
Convey To transfer real estate from one person to another.
Credit Report The report to a prospective lender on the credit
standing of a prospective borrower.
Deed A legal written document by which title to property is
transferred.
Default Failure to fulfill the terms as agreed to in the mortgage
of note.
Down Payment The difference between the sale price of a property
and the mortgage amount.
Due-On-Sale A clause in a mortgage which gives the lender the
right to require immediate repayment of a mortgage balance
if the property changes hands.
Earnest Money The deposit money given to seller or his agent
by the potential buyer at the time of the purchase offer. If
the offer is accepted, the money will become part of the down
payment.
Easement A right to the limited use of land owned by another.
An electric company, for example, could have an easement to
put up electric power lines over someone's property.
Encumbrance Anything that affects or limits the title to a
property, such as outstanding mortgages, easement rights or
unpaid back taxes.
Equity The value in which the owner has in real estate over
and above the mortgages against it. When the mortgage and all
other debts against the property are paid in full, the owner
has 100% equity in his property.
Escrow Funds and/ or deed left in trust to a third party. Generally,
a portion of the monthly mortgage payment is held in escrow
by the lender to pay for taxes, hazard insurance and yearly
mortgage insurance premiums.
First Mortgage A mortgage that has a primary lien against a
property.
Fixed-Rates Mortgage A mortgage with an interest rate and monthly
payments that remain constant over the life of the loan.
Fixture Property, such as a hot water heater or plumbing fixture,
that has become permanently attached to piece of real estate
and goes with the property when it is sold.
Flood Certification An independent agency report required by
the lender to determine whether a property is located in a
flood hazard zone, which would then require a federally mandated
flood insurance policy.
Foreclosure A legal procedure in which property mortgaged as
security for a loan is sold to pay the defaulting borrower's
debt.
Graduated Payment
Mortgage A fixed rate loan with monthly payments that start
low, increasing by a fixed amount for a specific number of
years. After that period, the payments typically remain constant
for the duration of the loan.
Gross Income Normal income, including overtime, prior to any
payroll deductions, that is regular and dependable. This income
may come from more than one source.
Hazard Insurance Insurance protection against damage to a property
from fire, windstorms, and other common hazards.
Homeowner's Insurance An insurance policy that covers the dwelling
and its contents in case of fire or wind damage, theft, liability
for property damage and personal liability.
HUD-1 Form See Real Estate Settlement Statement.
Income Property Real estate that is owned for investment purposes
and not used as the owner's residence.
Interest A charge paid for the use of money.
Interim Financing See Bridge Loan.
Land Contract When the buyer agrees to make payments directly
to the seller at pre-negotiated terms. The seller agrees to
deed the property to the buyer upon completion of the agreement.
The buyer becomes the owner of equity in this type of sale.
(Also see Owner Financing)
Lien A legal claim on a property used as security for a debt.
Loan-To-Value Ratio The relationship between the amount of
the mortgage and property value, usually shown as a percentage.
Market Value The price at which a property will sell, assuming
a knowledgeable buyer and seller, both operating without undue
pressure.
Mortgage A contract in which a borrower's property is pledged
as security for a loan which is to be repaid on an installment
basis.
Mortgage Note A written promise to pay a debt at a stated interest
rate during a specified term. The agreement is secured by a
mortgage.
Mortgagee The lender in a mortgage contract.
Mortgagor The borrower in a mortgage contract.
Negative Amortization A loan in which the outstanding principal
balance goes up instead of down because the monthly payments
are not large enough to cover the full amount of interest due.
Also called deferred interest.
Offer to Purchase A written proposal to buy a piece of real
estate that becomes binding when accepted by the seller. Also
called a sales contract.
Origination Fee A fee charged for the work involved in the
evaluation preparation and submission of a proposed mortgage
loan.
Owner Financing A purchase in which the seller provides all
or part of the financing.
PITI An acronym for payments to lender that cover principal,
interest, taxes and insurance on a property.
Plat A map of a piece of land showing boundary lines, streets,
actual measurements and easements.
Point A fee paid to the lender on closing day to increase the
effective yield of the mortgage. A point is one percent of
the amount of the mortgage loan. Also called a discount point.
Prepayment Penalty A charge paid to the lender by the borrower
if a mortgage loan is repaid before its term is over.
Pre-Approval A commitment by a lender to extend credit provided
that specific conditions are met.
Pre-Qualification A preliminary assessment of a buyer's ability
to secure a loan, based on a specific set of lending guidelines
and buyer representations made. This is not a guarantee or
commitment by a lender to extend credit.
Prime Rate The interest rate charged by banks to their preferred
corporate customers, it tends to be an estimator for general
trends in short term interest rates.
Principal The amount borrowed or remaining unpaid; also, that
part of the monthly payment that reduces the outstanding balance
of a mortgage.
PMI (Private Mortgage Insurance) Insurance written by a private
company to protect the lender against loss caused by mortgage
default.
Qualifying Ratios Guidelines applied by lenders to determine
how large a loan to grant a home buyer.
Real Estate Settlement Statement Final settlement statement
often referred to as the HUD-1 form, used to itemize buyer,
seller, broker, and lender charges and credits at closing.
Realtor A real estate broker or sales associate affiliated
with the National Association of Realtors.
Recording Fee The charges made by the register of deeds to
record the legal documents.
Refinancing Repaying a debt with the proceeds of a new loan,
using the same property as collateral or security.
Second Mortgage A loan on property which already has an existing
mortgage(the first mortgage). The second mortgage is subordinate
to the first.
Secondary Mortgage Market The buying and selling of existing
mortgages through agencies (i.e. Fannie Mae, Freddie Mac).
Survey A map prepared by an engineer or surveyor charting a
particular piece of real estate.
Title Ownership of a property. A clear title is one without
any outstanding liens or encumbrances. A cloud on title refers
to any outstanding liens or encumbrances which could impair
the title.
Title Insurance Policy Protection against financial loss arising
from defects in the title occurring before purchase.
Title Search A check of public record to disclose the past
and current facts regarding ownership of a particular piece
of property.
Transfer Tax In some areas city, county or state taxes imposed
when property passes from one person to another.
Truth-In-Lending A federal law that requires lenders to fully
disclose, in writing, the terms and conditions of a mortgage,
including the APR and other charges.
Underwriting The process of evaluating a loan application to
determine the risk involved for the lender.
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