The assessed value of a property is the value assigned to it by the government for taxation purposes. The purpose of the assessment is to determine the amount of tax that the owner of the property will be required to pay. The assessed value is usually lower than the market value of the property. What … Read more
A partial release is a legal document that releases a portion of the collateral that was used to secure a loan. This can be done when the borrower has paid off a portion of the loan or when the lender agrees to release a portion of the collateral for other reasons. The partial release will … Read more
The weighted average maturity (WAM) is the average length of time to maturity of all the bonds in a portfolio, weighted according to the size of each bond’s outstanding principal. The weighted average maturity is used to measure the sensitivity of a bond portfolio’s value to changes in interest rates. A portfolio with a longer … Read more
A release clause is a provision in a mortgage contract that allows the borrower to sell the property and pay off the loan balance early, without having to pay a penalty. The clause typically stipulates that the borrower must give the lender written notice of their intention to sell, and that the sale must be … Read more
A possessory lien is a legal claim that a person or entity has on another person’s property. This type of lien gives the claimant the right to take possession of the property if the owner fails to pay a debt or fulfill some other obligation. Possessory liens are typically used by creditors, landlords, and mechanics … Read more
Pre-qualification is the initial step in the mortgage application process. It is generally done over the phone or online, and involves providing information about your income, debts, and assets. Based on this information, the lender will give you a preliminary estimate of how much they are willing to lend you and what interest rate you … Read more
The 28/36 rule is a guideline that mortgage lenders use to determine how much of a borrower’s monthly income can be used to pay for housing expenses and still leave enough money for other living expenses. The 28/36 rule states that a borrower’s housing expenses (mortgage payments, property taxes, and insurance) should not exceed 28% … Read more
A relocation mortgage is a type of mortgage loan that helps borrowers relocate to a new home. The loan can be used to purchase a new home or to refinance an existing home loan. Relocation mortgages typically have lower interest rates than other types of mortgage loans, making them a good option for borrowers who … Read more
The initial rate period of a loan is the length of time during which the interest rate is fixed. This period can range from a few months to a few years, after which the rate will adjust according to the terms of the loan. What does initial term length mean? The initial term length is … Read more
A variable rate mortgage is a type of home loan where the interest rate is not fixed and can fluctuate over time. This means that your monthly repayments can go up or down depending on changes in the market. Variable rate mortgages usually start off with a lower interest rate than fixed rate mortgages, but … Read more
