That portion of a borrower's monthly payments held by the lender or
servicer to pay for taxes, hazard insurance, mortgage insurance, lease
payments, and other items as they become due. Also known as reserves.
A number, usually a percentage, upon which future interest rates
for adjustable rate mortgages are based. Common indexes include the
Cost of Funds for the Eleventh Federal District of banks or the average
rate of a one year Government Treasury Security.
The periodic charge, expressed as a percentage, for use of credit.
A construction loan made during completion of a building or a
project. A permanent loan usually replaces this loan after completion.
A money source for a lender.