When a Mortgage Is Paid in Full It Is Said in Legal Terminology to Be
A title insurance policy used to insure the mortgage lien that a lender acquires. The transfer of possession and the right to use the property for a certain period of time with payment of rent to the landlord. Lender`s title insurance protects your lender from problems with the title to your property, such as someone having a legal claim against the home. The lender`s title insurance only protects the lender from title issues. To protect yourself, you may want to purchase property insurance from the landlord. The unpaid portion of the loan amount. The capital balance does not include interest or other expenses. Fiduciary Agreement: The meeting between the buyer, seller and lender (or their agents) when ownership and funds legally change hands. Learn more about the cost of mortgages. The Federal National Mortgage Association (Fannie Mae) purchases and guarantees mortgages from lenders to increase affordable lending. Fannie Mae is not a federal agency.
It is a state-sponsored enterprise under the supervision of the Federal Housing Finance Agency (FHFA). The period during which a borrower can receive advances (also known as drawdowns) from an available line of credit. At the end of the draw period, borrowers may be able to extend the line of credit or pay off the outstanding balance in full or in monthly instalments. An escrow account is set up by your mortgage lender to pay for certain property-related expenses, such as property taxes and home insurance. A portion of your monthly payment goes to the account. If your mortgage doesn`t have an escrow account, you`ll pay the expenses related to the property directly. If you are interested in buying a condominium, co-op or home in a planned subdivision or other organized community with shared services, you will usually have to pay a condo fee or homeowners` association fee (HOA). These fees vary widely. Condo or HOA fees are usually paid separately from your monthly mortgage payment. If you don`t pay these fees, you may face collection efforts from the homeowners corporation and even foreclosure. The term of your mortgage is the time you need to pay off the loan.
For most types of homes, mortgage terms are typically 15, 20 or 30 years. A provision in some variable rate mortgages (MRAs) that allows the borrower to convert the MIE to a fixed-rate loan at certain points in the term of the loan. A property with a lien cannot be sold unless the lien is a mortgage and arrangements have been made to pay for it in full from the proceeds of the sale of the home. In such situations, the record of the deed of reassignment is part of the process of closing the sale of the home, and the file is usually handled by a title insurance company. Fee for a public official (usually a registrar of deeds or county clerk) who publicly notes the terms of a legal document relating to the ownership of real property, such as a deed, security instrument, mortgage satisfaction or mortgage extension. A second mortgage or subordinated lien is a loan that you take out with your home as collateral while you have yet another loan secured by your home. A change to the mortgage is a change to the terms of your loan. Change is a kind of loss reduction.
When we use the term outstanding principal balance, we mean the amount you borrowed (which may include amounts added to your principal balance related to loan changes) on the history of the loan that has not yet been repaid. We may charge you interest each month on the outstanding principal balance (or amount owing) depending on the terms of your loan. The outstanding balance of all mortgages on a property. Used to determine all available equity based on the estimated value of the property minus any outstanding combined total or lien. The report shows the amount of interest paid during the year, as well as the remaining balance of the mortgage at the end of the year. If the bank has a garnishment account for you, it will also show how much property taxes have been paid and reserved. If the bank does not have a property tax garnishment account, no tax details will appear in the report. Prepaid interest: Mortgage interest paid from the date of financing until the end of that calendar month. An interest rate cap, sometimes called an annual cap, is the maximum rate increase that can occur annually for a variable rate mortgage (MRA), even if the interest rate below market rates would have risen further.