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.
N
Note
The written agreement signed by the borrower at closing that contains the promise to repay the loan. The note also contains the terms of the loan, such as interest rate, payment, and term.
Note Rate
The interest rate stated on a mortgage note. Also called nominal rate or face interest rate
Notice of Default
Formal written notice to a borrower that a default on a loan has occurred and that legal action may be taken.
Number of Application Questions
To apply for an online mortgage, an applicant is asked to provide personal and financial data about themselves. In order to help you compare one site to another, we have estimated the number of questions that must be answered to complete an application at each site.
NY Tax & Title Search
A fee charged by New York title companies or attorneys to cover the cost of searching the public record for court orders against the current owner or proposed purchaser that could affect the title of the property. The tax records are searched as well. For our comparison purposes, the NY Tax & Title Search fee is considered to be a third party fee.
O
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.