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Glossary

Abstract of Title

A set of documents which record the ownership through time of a property.

Adjustable Rate Mortgages

An adjustable rate mortgage, called an ARM for short, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes.

Affidavit

A sworn statement in writing.

Amortize

To reduce a debt by means of regular periodic payments that includes amounts applicable to both principal and interest.

APR - Annual percentage rate

Annual Percentage Rate, a measure of the cost of the credit that must be reported by lenders under Truth in Lending regulations. APR takes into account the interest rate and up-front charges paid by borrower.

Assumption

A mortgage that allows a new owner to take over payments.

Deed

A written document by which the ownership of land is transferred from one person to another.

Deed of Trust

Instrument used to secure a loan on real estate. Like a mortgage, a Deed of Trust is generally used in the South. The major difference is in how foreclosures are handled. Foreclosures are much faster with a Deed of Trust than with a mortgage.

Deposit or Earnest Money

Advance payment of part of the purchase price to bind a contract for property.

Equity

The interest or value that an owner has in real estate over and above the debts against it.

Escrow

Documents, real estate, money, or securities deposited with a neutral third party (the escrow agent) to be delivered upon fulfillment of certain conditions, as established in a written agreement.

FNMA (Fannie-Mae)

The Federal National Mortgage Association, a federally sponsored private corporation which provides a secondary market for housing mortgages.

Fixed Rate Mortgages

Mortgages with a fixed interest rate. The payment for principal and interest will not change for the life of the loan.

FHA - The Federal Housing Administration

An agency of the federal government that insures private loans for financing of new and existing housing and for home repairs under government approved programs.

FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation

An affiliate of the Federal Home Loan Bank that creates a secondary market in conventional residential loan and FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.

Foreclosure

The legal process by which an owner’s right to a property is terminated, usually due to default. Typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.

Grantee

A person who acquires an interest in land by deed, grant or other written instrument.

Grantor

A person who, by a written instrument, transfers to another interest in land.

Hazard insurance

The homeowner’s insurance policy.

In personam

Directed at specific persons rather than against property or generally for all people.

In rem

Pertaining to property or people in general.

Interest only payments

A mortgage where only the interest is paid on a monthly basis. This means that the buyer gets no equity.

Lien

A hold, a claim or charge allowed a creditor upon the lands of a debtor.

Mortgage Note

Note that offers a mortgage as proof of a debt and describes the terms under which the mortgage is to be repaid.

Mortgagee

The creditor or lender in a mortgage agreement.

Mortgagor

A designation for the mortgage borrower on property.

Mortgage Insurance Protection Note (MIP)

A written promise to pay a certain amount of money, at a certain time, or in a certain number of installments. It usually provides for payment of interest and its payment is at times secured by a mortgage. The mortgage note document gives the mortgage company “in rem” jurisdiction over the mortgagor. The promissory note document gives the mortgage company “in personam” jurisdiction over the mortgagor.

Paid outside of closing (P.O.C)

Sometimes the lender requests this money before settlement. If you pay any charges before settlement they should be written on the settlement sheet. They are written on the proper line outside of your column. They should also be marked P.O.C.

Point

A percentage point. Equal to one percent of the loan amount.

Power of Attorney

An instrument authorizing another to act on one’s behalf as his agent or attorney.

Private mortgage insurance (PMI)

PMI protects the lender from the losses that would occur in the case of foreclosure.

Purchase Money Mortgage (PMM)

A mortgage given by the seller simultaneously with the purchase of real estate to secure the unpaid balance of the purchase price.

Promissory Note

A promissory note is an acknowledgment of debt with a written and unconditional promise to repay a loan or debt in a specified manner. It may also be called a loan agreement or personal loan agreement.

Real Property

Land and that which is affixed to it.

Reissue Rate

Reduced rate of title insurance premium applicable in cases where the owner of the land has been previously insured in an owner’s policy by the insurer within a certain time.

Second Mortgage

Mortgage on real estate which has already been pledged as collateral for an earlier mortgage. The second mortgage carries rights which are subordinate to those of the first.

Testimonials


Hi Alejandro, Thank you for handling this closing. You and your team were very professional and very helpful thru the whole process. We had a buyer who wanted to buy and a seller who wanted to sell. Every step of the way you kept us informed to make for a smooth closing. Thank you!

Cathy I.
Realtor

Hello Everybody, I wanted to take a moment to thank each and every single one of you for closing our very challenging deal. Without your prompt guidance and efficient assistance every step of the way it would have been impossible to deliver. Teamwork makes the dream work!

Valentina M.
Realtor

I wanted to thank your team for a smooth closing, I just picked up two listings and I will start using your company from now on and also tell my clients. Thanks again

Craig C
Realtor

Best Beach Title Team! Thank you all for walking through this with us. We have been blessed by your attitudes, expertise, and kindness. It has been a pleasure doing business with you. Blessings.

Maria W.

Thanks Best Beach Title! Our sincere gratitude for expediting this case after taking care of a few 'turbulences' as I would see it, and of course, I will have no hesitation in recommending your services to others! With best wishes.

Bibi Ch.

Thank you for all your help in this closing. Hectic at times but we made it. Great job. I'll keep you guys in mind for all my future closings.

Jorge G.
Realtor

Thank you for EVERYTHING! You have earned your wings into heaven! Great closing!

Debbie C.

Once again we have made one more Family Happy . I would like to take the opportunity to say thank you to everyone involve. I certainly could not have done it alone, so you all deserve credit for an other successful closing. Buyer took procession of his new house Friday afternoon and he is a happy man! Truly a joy to make someone happy.

Yvans G.
Realtor

Thank you for your time, it was a pleasure to work with you in this transaction. Looking forward for new business with you.

Franco T
Realtor

Thank you for making all go smooth after all the ruffles along the way. I appreciate all your effort making this happen. it was a pleasure and we will have the pleasure again thank you.

Manuel C
Realtor

I really appreciate your efforts. Lara, among lots of other things you did. Thank you for the communication you had with the sellers and all of us, you close this deal! Thank you for supporting the whole transaction since the beginning specially the support with the violations. You the best!

Jackie S
Realtor