Real Estate & Mortgage Finance Financial Terms & Definitions

25 terms in this topic

Real Estate & Mortgage Finance encompasses the financial mechanisms and instruments involved in buying, selling, and financing real property. It includes topics such as mortgage types, interest rates, amortization, property valuation, and real estate investment analysis. This glossary provides definitions for key terms used by homeowners, investors, and financial professionals in the real estate and mortgage industries.

R

Refinancing

Refinancing is the process of replacing an existing loan (usually a mortgage) with a new loan that has different terms.…

Full Definition
T

Title insurance

Title insurance is a specialized form of indemnity insurance that protects real estate buyers and lenders against financial loss arising…

Full Definition
Jumbo loan A jumbo loan is a type of mortgage used to finance properties that are too expensive for a… Loan-to-value (LTV) Loan-to-Value (LTV) is a critical financial ratio used by mortgage lenders to evaluate the risk of a loan.… Mortgage A mortgage is a type of secured loan used to finance the purchase of real estate, such as… Mortgage-backed security (MBS) A mortgage-backed security (MBS) is a type of investment product that represents a claim on the cash flows… Points (discount points) Discount points, often simply called “points,” are a form of prepaid interest you can pay to your lender… Pre-approval Pre-approval is a preliminary evaluation by a lender that indicates how much money you may be able to… Principal and interest (P&I) Principal and interest (P&I) is the core component of a mortgage payment that goes directly toward paying down… Private mortgage insurance (PMI) Private mortgage insurance, commonly known as PMI, is a type of insurance that protects the lender (the bank… Refinancing Refinancing is the process of replacing an existing loan (usually a mortgage) with a new loan that has… REIT (Real Estate Investment Trust) A Real Estate Investment Trust, commonly known as a REIT (pronounced “reet”), is a company that owns, operates,… Title insurance Title insurance is a specialized form of indemnity insurance that protects real estate buyers and lenders against financial… Underwater mortgage An underwater mortgage, also known as being in a state of negative equity, occurs when the outstanding balance…