Cash equivalent in real estate refers to converting the price of a property sold with either favorable or unfavorable financing into the price the property would have sold for if the seller had accepted all cash in the transaction.
A junior mortgage is a type of mortgage that rises behind a prior mortgage in lien priority, which means in case of default, the primary mortgage get paid first before the junior mortgage is addressed.
A leasehold mortgage is a lien placed on a tenant’s interest in real estate, usually a long-term lease, to provide security for the repayment of a loan.
In real estate and finance, a margin refers to the constant amount added to the value of the index to adjust the interest rate on an adjustable-rate mortgage (ARM). It is a critical component in determining the overall interest rate that a borrower will pay.
Original Equity refers to the initial amount of cash invested by the underlying real estate owner. It is distinct from concepts like sweat equity and capital calls, forming the base for calculating the owner's financial stake in the property.
A seasoned loan refers to a loan that has a history of timely payments made over a period of time, making it more attractive to investors.
A security instrument is an interest in real estate that allows the property to be sold upon a default on the obligation for which the security interest was created.
Security interest refers to a legal claim on collateral that has been pledged, usually to obtain a loan or other obligation.
