Definition
Board Rate
The board rate is quite possibly the longest surviving type of interest rate structure for home loans today. It’s hardly surprising as they have as these …
Per Diem Interest
Per diem interest is the interest charges that is due to the bank from the day of closing to the first day of the following month which is when the first …
Interest In Lieu
Interest in lieu is a calculation of interest charges within a period of time should a borrower still be holding onto the home loan. This term is usually seen …
Current Account Savings Account (CASA)
Current account savings account (CASA) is a phrase loosely used to refer to bank accounts opened by people or entities for transactional and saving deposits. …
Principal
The principal of a housing loan refers to the original loan amount that was borrowed by a borrower. This is important to understand as monthly home loan …
Prepayment
A mortgage prepayment basically refers to a payment made by a borrower to reduce the principle balance on the home loan, thereby reducing interest costs. A …
Owner Occupied
Owner occupied refers to property whereby the owner is the resident who lives in it. It is a real estate term that is most often used in mortgages. This is …
Spread
The spread is the premium, expressed in percentage, that is added to a base rate which sums up to the total interest rate that would be charged on a loan. In …
Option To Purchase (OTP)
An option to purchase is a basic agreement between a property seller and buyer whereby the buyer has been granted the exclusive right to buy the property …
Delinquency
Delinquency is simply a term that describes a mortgage payment that has been late for more than 30 days. As the homes of borrowers would understandably be one …
