Matching Pairs Mortgage and Loans G-HOnline version Match the commonly used mortgage terms in English to their definitions. by Linda Asher 1 Ginnie Mae 2 HUD 3 Homeowners insurance 4 Home Valuation Code of Conduct 5 Home Affordable Modification Program 6 Home Equity Conversion Mortgage 7 Home equity loan 8 Homeowner's Aassociations or Organizations HOA 9 Home Equity Line of Credit 10 Home Affordable Refinance Program 11 Home value 12 Good Faith Estimate 13 HUD-1 Settlement Statement 14 HOA fees 15 Grossing up 16 Graduated payment mortgage At closing, this standard form itemizes the actual costs and fees of the mortgage lender, mortgage broker, real estate agent, seller, buyer and other parties to the refinance or real estate property purchase. A borrower takes out a lump-sum loan based on her home equity and repays it monthly, typically based on a fixed interest rate over the loan's term, usually of five to 15 years. Unlike a HELOC, the borrower receives the loan in a lump sum. Underwriters may do this to the value of non-taxable income — such as Social Security benefits, Roth IRA income, disability payments, or an employer's insurance premiums paid on your behalf — by 25 percent to reflect the fact that the borrower will not pay income tax on that income. For example, if a borrower receives a monthly payment of $1,000 from a non-taxable source, the income is counted at $1,250 when calculating the borrower's DTI ratio. This insurance policy protects homeowners against damage to their houses and possessions as well as liability against accidents occurring on the property. As a condition of extending a loan, mortgage lender will require a borrower to purchase this insurance. Often, these insurance policies are integrated into the monthly mortgage payment. These are made up of appointed homeowners within a condominium or planned community. They make and enforce rules for the condominium or community and manage the repair and maintenance of common areas. This is the nickname for the Government National Mortgage Association that is part of the Department of Housing and Urban Development (HUD), which backs FHA and VA mortgages. A federal program introduced in 2009 aimed at helping borrowers who are using more than 31 percent of their gross income to pay their mortgage payments. It enabled eligible borrowers to modify their current loans, through adjustments to the loan principal or interest rate. The program expired December 31, 2016. This is based on federal rules implemented in 2009 setting forth restrictions on the interaction between home appraisers and mortgage lenders. The overarching purpose is to ensure independent appraisals. Fannie Mae and Freddie Mac purchase only those mortgages whose underwriting process included an independent appraisal. These rules do not apply to FHA or VA loans. Senior citizens at least 62 years old can obtain FHA- insured reverse mortgages that enable them to spend down equity in their primary residences. This is the U.S. Department of Housing and Urban Development, which includes the Federal Housing Administration (FHA) and Ginnie Mae. A federal program introduced in 2009 that is aimed at helping homeowners who are underwater or near underwater to refinance to a more affordable or stable mortgage. An open line of credit with a set time limit, and uses the borrower's home as collateral. Rather than a fixed amount that the homeowner receives all at once, such as in a cash-out refinance or a home equity loan, it allows a borrower to draw out money as needed. It is not the same as a home equity loan. These fees are collected from member owners to cover the costs of maintenance, landscaping and other expenses involving common areas of a condominium building or planned community. Fees are usually collected monthly or annually. This is a property's market worth. For purposes of loan underwriting, it is expressed as the appraised value, which is conducted by a professional inspector chosen by the lender. For purposes of taxes, it is expressed as the assessed value. This fixed-rate mortgage involves a negative amortization payment structure. This is the federal disclosure that a mortgage lender must provide to a borrower within three days after the submission of a loan application. It details the expected closing costs and fees associated with the home loan.
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