Related Words

Refinance: To repay one or more existing mortgage loans by getting a new mortgage loan.

Lifting Clause: A provision in a junior mortgage that allows the underlying senior loan to be replaced or refinanced so long as the amount of the new senior loan does not exceed the amount of the first lien . . . View Full Definition

Contract For Deed: The contract for deed is used extensively in many areas, where it may be called a land contract, agreement of sale, installment contract, articles of agreement, conditional sales contract, b . . . View Full Definition

Va Loan: A government-sponsored mortgage assistance program administered by the Department of Veterans Affairs. Under the Servicemens Readjustment Act of 1944, eligible veterans and widows or widower . . . View Full Definition

Wraparound Mortgage: A method of financing in which the new mortgage is placed in a secondary or subordinate position, the new mortgage includes both the unpaid principal balance of the first mortgage and whatev . . . View Full Definition

Junior Refunding: Issuing of new securities to refinance government debt that matures in one to five years.

Irrational Call Option: The implied call imbedded in a MBS. Irrational because the call is sometimes not exercised when it is in the money (interest rates are below the threshold to refinance), and sometimes exerci . . . View Full Definition

Floating Exchange Rate: Short-term debt that is renewed and refinanced contantly to fund capital needs of a firm or institution.

Refinancing: Refinancing is the process of paying off an existing loan by taking a new loan and using the same property as security. Homeowners may refinance to reduce their mortgage expense if interest . . . View Full Definition

Prepayment Penalty: The charge which can be imposed if you pay off your loan before maturity. The Truth in Lending Disclosure Statement will show whether a loan has a prepayment penalty.