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Real Estate - Same as "cap." See also "cap."
U.S. Census Bureau - Cite This Source - This Definition - A limit on how much an ARM's payment may increase, regardless of how much the interest rate increases.
US Department of Housing and Urban Development - Cite This Source - This Definition - See: cap.
Ginnie Mae - Cite This Source - This Definition - A limit on the amount that your monthly mortgage payment on a loan may change, usually a percentage of the loan. The limit can be applied each time the payment changes or during the life of the mortgage. Payment caps may lead to negative amortization because they do not limit the amount of interest the lender is earning.
The Federal Reserve Board - Cite This Source - This Definition - For an adjustable-rate mortgage (ARM) or other variable rate loan, a limit on the amount that payments can increase or decrease during any one adjustment period.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: annual cap, Cap, interest cap, Interest Rate Cap, Life Cap, life-of-loan cap, Lifetime Cap, Rate Cap
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Real Estate - The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
US Department of Housing and Urban Development - Cite This Source - This Definition - The date on which a new monthly payment amount takes effect, for example, on an adjustable-rate mortgage (ARM) loan.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Adjustable mortgage loan, Adjustable rate mortgage (ARM), Adjustment Date, Alternative mortgage instrument (AMI), ARM, consumer handbook on adjustable rate mortgages (C.H.A.R.M.), Conversion Clause, Conversion Option, Convertible ARM, convertible mortgage, Fixed-Period Adjustable-Rate Mortgage, Fixed-rate mortgage, Initial Interest Rate, Interest Rate Ceiling, Interest Rate Floor, Prime rate, Two Step Mortgage, Variable maturity mortgage, variable rate mortgage (VRM)
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Real Estate - For homeowner's insurance, an event that can damage the property. Homeowner's insurance may cover the property for a wide variety of perils caused by accidents, nature, or people.
US Department of Housing and Urban Development - Cite This Source - This Definition - Browse Related Terms: Casualty Protection, Deductible, Disclosures, Fire insurance, Flood Insurance, Hazard Insurance, Home Warranty, Homeowner's insurance, Insurance, Liability Insurance, Mortgage Life Insurance, Owner's Policy, Property insurance, Rollover, Title insurance
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Real Estate - Abbreviation for principal and interest.
Ginnie Mae - Cite This Source - This Definition - Browse Related Terms: Additional Principal Payment, Annual Mortgagor Statement, closed-end mortgage, Mortgage Life and Disability Insurance, Notional Principal Amount, open-end mortgage, Original Principal Balance, Outstanding balance, Principal, Principal and interest payment (P & I), Remaining Balance
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Real Estate - Principal, Interest, Taxes, and Insurancethe four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.
US Department of Housing and Urban Development - Cite This Source - This Definition - Abbreviation for principal, interest, taxes and insurance.
Ginnie Mae - Cite This Source - This Definition - An acronym for the four primary components of a monthly mortgage payment principle, interest, taxes, and insurance (PITI).
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Charge-off, Cushion, Gift Letter, Interest, Loan, PITI Reserves, Principal, interest, taxes, and insurance payment (PITI), Principal, Interest, Taxes, and Insurance (PITI), Reinstatement Period, taxes
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Real Estate - A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.
US Department of Housing and Urban Development - Cite This Source - This Definition - A cash amount that a borrower has available after making a down payment and paying closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Charge-off, Cushion, Gift Letter, Interest, Loan, PITI, Principal, interest, taxes, and insurance payment (PITI), Principal, Interest, Taxes, and Insurance (PITI), Reinstatement Period, taxes
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Real Estate - A point is one percent of the principal. Points are paid by the seller in FHA and VA insured loans, and by either the buyer or seller or both in conventional loans.
U.S. Census Bureau - Cite This Source - This Definition - A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $95,000, one point means you pay $950 to the lender. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages in order to increase the yield on the mortgage and to cover loan closing costs. These points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
US Department of Housing and Urban Development - Cite This Source - This Definition - Charges levied by the lender based on the loan amount. Each point equals one percent of the loan amount; for example, two points on a $100,000 mortgage equals $2,000. Discount points are used to buy down the interest rate. Points can also include a loan origination fee, which is usually one point.
Ginnie Mae - Cite This Source - This Definition - One point is equal to 1 percent of the principal amount of a mortgage loan. For example, if a mortgage is $200,000, one point equals $2,000. Lenders frequently charge points in both fixed-rate and adjustable-rate mortgages to cover loan origination costs or to provide additional compensation to the lender or broker. Points are paid usually on the loan closing date and may be paid by the borrower or the home seller, or split between the two parties. In some cases, the money needed to pay points can be borrowed, but doing so will increase the loan amount and the total costs. Discount points (sometimes called discount fees) are points that the borrower voluntarily chooses to pay in return for a lower interest rate.
The Federal Reserve Board - Cite This Source - This Definition - 1% of the amount of the mortgage loan. For example, if a loan is made for $50,000, one point equals $500.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: Buy down, Discount point, discount points, Float, loan discount
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Real Estate - A lender commits to lend to a potential borrower a fixed loan amount based on a completed loan application, credit reports, debt, savings and has been reviewed by an underwriter. The commitment remains as long as the borrower still meets the qualification requirements at the time of purchase. This does not guaranty a loan until the property has passed inspections underwriting guidelines.
US Department of Housing and Urban Development - Cite This Source - This Definition - A process by which a lender provides a prospective borrower with an indication of how much money he or she will be eligible to borrow when applying for a mortgage loan. This process typically includes a review of the applicant's credit history and may involve the review and verification of income and assets to close.
Federal Trade Commission - Cite This Source - This Definition - Browse Related Terms: application, Automated Underwriting, Loan Origination, mortgage lender, Origination, Third-Party Origination, Underwriter, underwriting, Uniform Residential Loan Application