Business / Loan Glossary

Hud: The U.S. Department of Housing and Urban Development

Hud Special Information Booklet: This is a booklet published by HUD that describes important terms and provides information about the home buying and mortgage loan process.

Hud-1: Also called a 'Settlement Statement' of all costs and fees in your closing.

Indorsement: 1. The act of signing one's name on the back of a check or a note, with or without further qualification. 2. The signature described above.

Installment Note: A note which provides that payments of a certain sum or amount be paid in more than one payment on the dates specified in the instrument.

Installment Sale: Also known as an agreement of sale or a land contract. This is a method of reporting capital gains by installments for successive tax years to minimize the impact of capital gains tax in the . . . View Full Definition

Institutional Lender: A lender which makes a substantial number of real estate loans, such as banks, savings and loan associations, and insurance companies.

Interest Rate: The amount charged by a lender for the money borrowed. It can be fixed or variable.

Interim Financing: Short-term loan to provide temporary financing until more permanent financing is available.

Intermediaries: Non- or for-profit institutions that have specialized lending capacities. They obtain capital in the form of equity and low interest loans from a variety of sources, including foundations an . . . View Full Definition

Introductory Rate: Some loans have a lower introductory interest rate, which is in effect for a limited time. At the end of the introductory period, the interest rate will increase. It is also known as a 'teaser rate.'

Inventory Financing: Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.

Jumbo Loans: Loans which exceed the Fannie Mae guidelines for loan size and amount. Jumbo loans may have different guidelines from a 'conforming' loan.

Late Charge: A penalty you will have to pay if you do not make your loan payment on time. This usually is calculated as a percentage of the payment amount or a minimum dollar amount, such as 5% of the la . . . View Full Definition

Lender: A company or person that makes mortgage loans, such as a mortgage banker, credit union, bank, or savings and loan. Your lender's name will appear on your promissory note.

Lender Paid Compensation To Broker: This is also called the Yield Spread Premium. Fee which the lender pays to the mortgage broker for obtaining the loan for his client.

Leverage: Using long-term debt to secure funds for an organization. In the social investment world, often refers to financial participation by other private, public or individual sources.

Lien: A claim (legal interest) against a home. Common types of liens include a mortgage, tax lien or judgment lien.

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