- 15 year fixed mortgage
A mortgage that maintains the same interest rate for the entire 15 year term of the loan.
- 15 year jumbo mortgage
A mortgage which exceeds the limits as set for the by Freddie Mac and Fannie Mae. The limit changes annually. These mortgages generally have higher interest rates than conventional mortgages.
- 20 year fixed mortgage
A mortgage that maintains the same interest rate for the entire 20 year term of the loan.
- 30 year fixed mortgage
A mortgage that maintains the same interest rate for the entire 30 year term of the loan.
- 401(k)/403(b) loan
401(k) and 403(b) are both plans that allow employees to invest and save for their retirement. The employees can authorize their employers to deduct a certain amount of the money from their salary before taxes to invest in these plans. They also permit the taking of loans against funds accrued in these plans. Loans against the 401(k) are often used as down payment for these loans. The 403(b) is also known as tax sheltered annuity (TSA) plan and is provided for employees of public schools, certain tax-exempt organizations and other certain ministries whereas the 410(k) is mainly for private organizations.
See further Reverse Mortgage
- 403(b) plan
A plan similar to a 401(k), but this plan is designed for public employees and nonprofit organizations.
- 529 plan
A savings type plan that allows families to set aside funds for their children's education with tax benefits. They are set up as prepaid tuition arrangements or simpler savings accounts. Also called Qualified Tuition Plans.
- 72 hour clause
This clause is designed to protect the seller from losing valuable marketing time during the real estate negotiation period. If a buyer has a house on the market, the seller will accept that buyer's offer but reserves the right to accept a better offer should one be presented. If this is the case, the seller gives the first buyer 72 hours to commit to the purchase or allow the second offer to prevail.
- 80-10-10 loan
A popular loan which allows you to finance 90 percent of the mortgage while avoiding mortgage insurance. The buyer puts down 10 percent, then takes out two mortgages, one for 80 percent and a second for 10 percent. In general, this situation keeps your monthly payments low which makes it easier to qualify for this mortgage.
- A- credit
The best credit rating that you can have. A FICO score above 720 will get you the best offer the lender can offer and the best interest rates. When applying for a mortgage loan, you will want your credit score to be as high as you can make it. Start working on this immediately.
- Abandonment
Abandonment happens when the person with a right or interest in a property gives up their interest. Once property has been "abandoned," it is no longer the property of the estate. This can happen either by physically abandoning the property or by demonstrating the intention of giving up the right or interest.
- Ability to Pay
A principle of taxation. Individuals who earn more money will pay more income tax not because they utilize more of the government services but because they have the ability to pay more.
