Definition
Qualification
Mortgage qualification is the process a loan officer takes to determine whether a borrower will be able to obtain a requested loan quantum based on information …
Know Your Customer (KYC)
Know your customer (KYC) is a banking slang used to describe basic due diligence checks on new customer who a bank is dealing with for the very first time. …
Partial Redemption
Partial redemption refers to the lump sum payment towards the principal balance on a home loan without fully paying it off. Partial redemptions occur …
Origination Fee
Origination fee, or sometimes called a processing fee, is an upfront fee charged by the bank as a percentage of the loan amount. It is an upfront fee because …
Interest Cost
The interest cost of a home loan is a method of calculating the payments made by the borrower over a specified period time, relative to the amount of funds …
Negative Amortization
Negative amortization for a housing loan occurs when your outstanding housing loan balance increases instead of decreases. This usually occurs when a borrower …
Mandatory Disclosure
Mandatory disclosure is the set of rules and regulations governing the type of information that must be informed to borrowers, including the methods and …
Late Payment Fees
Late payment fees are penalty charges when a lender determines a payment as being overdue. What constitutes late and how much the fees are varies from lender …
Junk Fees
Junk fees is a sarcastic street term used to describe the endless itemized expenses lenders list out to show borrowers so as to justify why there are so much …
Initial Interest Rate
Initial interest rate is an industry jargon used by mortgage professionals. It refers to the interest rates on housing loan before it reverts to a …
