Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
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Obligee
A person or company whose favor an obligation is entered into.
Obligor
A person or company who has engaged to perform some obligation
Occupancy Rate
Percentage of currently rented units in a building, neighborhood, complex, or city.
Offer
A buyer's expression of willingness to purchase a property at the seller's specified price.
Offer to Purchase
An agreement between a buyer and seller to purchase real estate. An offer to purchase, also known as a binder or a sales contract, secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money that was paid is forfeited unless the binder expressly provides that it is to be refunded.
Online Approval
An instant approval provided by some online lenders as soon as you complete the online application. An online approval saves you time.
Online Rate Locks
The ability to lock in an interest rate directly from the website of a lender. The online rate lock capability means you don't have to make telephone contact during business hours when you are ready to lock in your interest rate.
Online Status
The ability to obtain status details about the progress of your mortgage request at the website of the lender. This convenience allows you to learn about the status of your request anytime you'd like.
Open-end Lease
A lease which may involve a balloon payment based on the value of the property when it is returned.
Original Principal Balance
Total amount of principal owed on a loan before any payments are made.
Origination Fee
A fee charged by a lender as a way to cover processing expenses or to increase their profitability for originating a mortgage loan. Most commonly, the origination fee is expressed as a percent of the loan amount. For our comparison purposes, the origination fee is considered to be a lender fee.
Other Fees
One of our goals is to provide you with apples to apples comparison of all the fees charged by our top lenders to obtain a loan. Fees listed as other fees cannot easily be compared to any standard fee type and should be evaluated and compared separate from the standard fees.
Owner Financing
A real property purchase transaction in which the seller provides the financing