Related Words

Uniform Residential Loan Application: A loan application form required by Freddie Mac and Fannie Mae.

Purchase Money Loan: A loan for the purpose of purchasing a home.

Purpose Loan: A loan that is backed by securities and that is used to buy other securities under certain government regulations.

Reduction-Option Loan (ROL): A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually al . . . View Full Definition

Purchase Loan: A consumer loan taken to finance a purchase.

Recourse Loan Program: Under the FAIR Act of 1996, recourse loans are available to producers of high moisture corn and seed cotton, dairy processors, and sugar processors. The commodity is pledged as security, but . . . View Full Definition

Project Loans: Usually FHA-insured and HUD-guaranteed mortgages on multiple-family housing complexes, nursing homes, hospitals, and other special development.

Presidential Election Cycle Theory: A theory that stock market trends can be predicted and explained by the four-year presidential election cycle.

Portfolio Loan: A loan originated and maintained by the lender and not sold in the secondary mortgage market.

Prime Loan: A loan offered to borrowers with better credit history (sometimes called 'A' loans). Prime loans generally are priced lower and cost the borrower less.