| Glossary of Terms |
Alonge - Generally, a single-page document attached to a negotiable
instrument to enable endorsements when the back of the bill is full. It is
often used for amendments and is affixed to the top of the document.
Amortization - The process of fully paying off indebtedness by
installments of principal and interest over a definite time. An amortization
schedule sets forth a borrower's payment stream from his/her first
payment to his/her last.
APR - acronym for Annual Percentage Rate
Deed of Trust/Mortgage - Used in some states instead of a mortgage to
secure the lender's interest in real property. A local trustee is appointed to
the transaction/property.
MERS - Acronym for Mortgage Electronic Registration System. Process
that simplifies the way mortgage ownership and servicing rights are
originated, sold and tracked. The MERS disclosure notifies a borrower that
the lender has selected MERS to assist with recording and tracking their
mortgage lien for the life of the loan and is not a successor in interest.
Promissory Note - A promise to pay. An agreement setting forth the
terms by which a borrower must repay his/her loan.
RESPA - acronym for the Real Estate Settlement Procedures Act. RESPA
governs closing costs and settlement procedures. RESPA requires that
consumers receive disclosures at various times in the transaction and
outlaws kickbacks that increase the cost of settlement services.
Right to Cancel - Federal law provides a borrower three (3) days to cancel
his/her transaction without penalty.
Truth in Lending Disclosure - Your Disclosure Statement provides
information set forth by federal law (Regulation Z, RESPA). The Disclosure
is designed to give you information about the cost of your loan based upon
the loan amount, term, interest rate and monthly payment stream.
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| The information you obtain at this site is not, nor is it intended to be, legal advice. Copyright © 2007 by Roberta Arnone, Attorney at Law, P.C. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. This web site was designed by Roberta Arnone, Esq. and hosted by Yahoo. |