A mortgage made subsequent to another mortgage and subordinate to the first one.
Secondary Mortgage Market
The place where primary mortgage lenders sell the mortgages they make
to obtain more funds to originate more new loans. It provides liquidity
for the lenders. Security.
An interest that a lender takes in the borrower's property to assure repayment of a debt.
Servicing a Loan
The ongoing process of collecting your monthly mortgage payment,
including accounting for and payment of your yearly tax and/or
homeowners insurance bills.
Shared Appreciation Mortgage (SAM)
A mortgage in which a borrower receives a below-market interest
rate in return for which the lender (or another investor such as a
family member or other partner) receives a portion of the future
appreciation in the value of the property. May also apply to mortgage
where the borrowers shares the monthly principal and interest payments
with another party in exchange for part of the appreciation.
Interest which is computed only on the principle balance.
A measurement of land, prepared by a registered land surveyor,
showing the location of the land with reference to know points, its
dimensions, and the location and dimensions of any buildings.
Equity created by a purchaser performing work on a property being purchased.