Written notice from the bank or other lending institution saying it will advance Mortgage funds in a specified amount to enable a buyer to purchase a house.

An intermediary between a borrower and a lender. A broker’s expertise is to help borrowers find financing that they might not otherwise find themselves.

The borrower in a mortgage agreement.

The lender in a mortgage agreement.

A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than would raise the balance to the original loan figure.

A legal instrument in which a lien on real property is granted as security for the repayment of a
loan. In some states, a deed of trust is used rather than a mortgage.

Usually, the amount of PITI (principal, interest, taxes, and insurance) paid each month on a mortgage loan.

MIP is one-half percent borrowers pay each month on FHA insured Mortgage loans. It is insurance from FHA to the lender against incurring a less due to the borrower’s default. On September 1, 1983 the MIP was changed to a one-time charge to borrowers.

The termination or due date on which final payment on a loan must be paid in full.

The most probable price which a ready, willing and able buyer would pay and a willing seller will accept, both being fully informed under no pressure to act. The market value may be different from the price a property can actually be sold for at a given time (market price).