Definition
Tenure
The tenure of a loan refers to the period for the entire life of the housing loan. For example if a loan is for 30 years, the tenure of the loan is 30 years. …
Appraisal
An appraisal refers to the determination of a property’s value by a qualified appraiser. The result is what is known as an appraised value. It must be …
Closing
In real estate, closing refers to the finalization of a transaction with all requirements met and documents endorsed. Some of the key events that take place …
Housing Expense
Housing expense is the monthly amount a borrower has to make towards the mortgage, property taxes, association fees, and related insurance premiums. It can be …
Fully Indexed Rate
The fully index rate is the value of home loan interest rate consisting of the index plus spread. For example, if a loan is on SIBOR + 1%, and SIBOR is 1.20%, …
Due On Sale
Due on sale is a clause contained in home loan contracts that allows banks to demand full repayment of the loan balance should the property be sold. This is to …
Construction Loan
A construction loan basically means a financing agreement for a lender to provide the funding for a site to undergo construction works. This should not be …
Second Mortgage
A second mortgage on a house refers to a second loan against the property. Technically speaking, it is possible for a house to have more than one lien holder. …
Collateral
A collateral refers to assets that are pledged by a borrower in order to secure a loan. This effectively means that all types of loans that are structured with …
Total Interest Payments
Total interest payment refer to the sum of all interest paid over the entire life of the loan or to a specific date. However, it is not a good reflection of …
