Noratio Loan

Definition of "No-Ratio Loan"

A documentation option where the applicant's income is disclosed and verified but not used in qualifying the borrower. The conventional maximum ratios of expense to income are not applied.

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Locking The Loan

An option exercised by the borrower, at the time of the loan application or later, to 'lock in' the rates and points prevailing in the market at that ...

Zero Balance

The amount the borrower owes at maturity. ...

Refinance

Paying off on old loan while simultaneously taking a new one. Borrowers may refinance to reduce Interest Cost or to raise cash. These are very diffe ...

Swing Loan

Same as term Bridge Loan: A short-term loan, usually from a bank, that 'bridges' the period between the closing of a home purchase and the closing of ...

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A biweekly mortgage on which biweekly payments are applied to the balance every two weeks, rather than monthly, as on a conventional biweekly. ...

Worst-Case Scenario

On an ARM, the assumption that the interest rate rises to the maximum extent permitted by the loan contract. ...

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