1003: Mortgage Application

SISA: Stated income, stated assets

LTV: Loan To Value

CLTV: Combined Loan to Value (in a combo loan -first and second loan)

NINA: No Income No Assets

SIVA: Stated Income, Verified Assets

Buydown
With a buydown, the seller pays an amount to the lender so that the lender can give you a lower rate and lower payments, usually for an early period in an ARM.

Hazard Insurance
Protects against damages caused to property by fire, windstorms, and other common hazards.

No Doc: Mortgage requires no employment, income, or assets to be stated on your loan application

ARM: Adjustable Rate Mortgage

Fixed Rate: Interest Rate are fixed

Combo Loan: Two loan, first and second

Piggy Back: First and second

First Lien: First loan of a Combo

Second Lien: Second Loan of a Combo

Jumbo Loan: Big loan around $800,000 and up.

HELOC: Home equity line of credit

ELOC: Equity line of credit

HUD-1 Settlement Statement
A standard form that shows all charges imposed on borrowers and sellers in connection with the settlement

Occupancy
Investment Property is a property that is not occupied by the owner and in most cases produces income or is held for gains from appreciation.
Second home, or vacation home, is different from an investment property as it is not rented, but used occasionally by the owners.

Cash Out Refinance
A refinance transaction in which the borrower receives cash in excess of existing mortgages and certain financing costs

Real Estate Settlement Procedures Act (RESPA)
A consumer protection statute designed to help consumers be better shoppers in the home buying process. It requires that borrowers receive disclosures at various times.

Prime Rate :
The Prime Rate is the interest rate charged by banks for short-term loans to their most creditowrthy customers.

Interest only:
Interest only loans are loans with an initial period of time where the borrower pays only the interest of the loan while the principle balance remains unpaid

Conforming Loan:
A conventional mortgage that conforms to the loan amounts and mortgage guidelines used by the Federal National Mortgage Association (FNMA or "Fannie Mae"),
and/or the guidelines of The Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac").

PITI: Principal, Interest, Taxes, and Insurance

Balloon Mortgage :
A mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower

Private Mortgage Insurance (PMI)
An insurance policy the borrower buys to protect the lender from non-payment of the loan