The term 'Accelerate (A Debt)' refers to invoking the acceleration clause in a loan agreement, making the full amount of the loan debt due immediately upon a borrower's default or other specified triggers.
An acceleration clause is a loan provision that allows the lender to demand full repayment of the outstanding loan balance if the borrower violates specific terms of the loan agreement.
An All-Inclusive Deed of Trust (AITD), also known as a Wraparound Mortgage, is a financial arrangement in real estate where a new mortgage includes the balance of an existing mortgage. This type of arrangement is utilized as a creative financing option to facilitate the sale or refinancing of property, particularly in environments where traditional financing methods are less accessible or less advantageous.
Annual cap is a limitation on the amount by which the interest rate on an adjustable-rate mortgage (ARM) can increase or decrease over a one-year period, protecting borrowers from significant fluctuations in their monthly mortgage payments.
An assumed mortgage, also known as an assumption of mortgage, occurs when a homebuyer takes over the seller’s existing mortgage, maintaining the original terms and conditions of the loan.
Contingent interest refers to an interest payment on a loan that is due only if certain pre-specified conditions are met. It often acts as an incentive for the borrower to perform well and achieve specific financial metrics.
An Escalator Mortgage, commonly referred to as an Adjustable-Rate Mortgage (ARM), is a type of home loan where the interest rate fluctuates based on a specific financial index, causing periodic payment adjustments over the life of the loan.
A clause or addendum to an agreement of sale that stipulates conditions for financing the property that must be met for the buyer to be obligated to close the sale.
A Life of Loan Cap is a contractual limitation on the maximum interest rate that can be applied to an adjustable-rate mortgage during the term of the loan.
A mortgage loan is a type of loan secured by real estate property that the borrower is obliged to pay back with a predetermined set of payments. It allows individuals and businesses to purchase real estate without paying the full value upfront.
Mortgage modification refers to the process of making permanent changes to the terms of an existing loan agreement between a borrower and a lender. This is intended to make the loan more affordable for the borrower to avoid foreclosure.
An open-end mortgage is a type of loan that allows the borrower to secure additional funds from the lender, with a ceiling amount set on the maximum borrowing limit typically based on a percentage of the property's appraised value.
The payment adjustment date is the specific date on which the interest rate of an adjustable-rate mortgage (ARM) can be adjusted to reflect changes in market interest rates.
A rate cap refers to predetermined limits placed on adjustments to the interest rate on an adjustable-rate mortgage (ARM), safeguarding borrowers from excessive rate fluctuations over the life of the loan.
An underlying mortgage refers to the first mortgage secured by a property when there's also a wraparound mortgage. It forms the basis of the total debt, while the wraparound mortgage includes additional financing layered on top of it.
