Reed Mortgage Colorado Upfront Broker Agent      



Our Company

Who We Are

Our Services

The Reed Advantage

Upfront Mortgage Broker

What Our Customers Say

Contact Us

Get a Loan


Buying a Home

The Home Buying Process

Protect Your Earnest Money

Service Standards

Buying Bank Owned Property



Should you Refinance?

Debt Consolidation Loans


Mortgage Reference Desk

The Basics

Mortgage Terminology

Mortgage Brokers

Brokers as Agents

What Makes A Good Broker?

VA Loans

Closing Costs

Locking Your Rate

What Determines Your Rate?

Adjustable Rate Mortgages

Private Mortgage Insurance

Annual Percentage Rate (APR)

Selecting a Mortgage Provider

Managing Your Credit 


No Closing Costs Loans






Mortgage Terminology

Accrual Rate:
The stated annual rate at which interest is calculated. On an adjustable-rate mortgage (ARM), the accrual rate is based on a combination of an independent market index, which fluctuates, plus a margin, which is fixed, and is established by the lender. The accrual rate is also called the "note rate," the "coupon rate" or the "contract rate."

Adjustable Rate Mortgage:
A general term for any mortgage loan in which the interest rate and, generally, the payments change over the life of the loan. The interest rate is adjusted to match the rise or fall of a pre-selected interest rate index and the borrower's regular payments will increase or decrease accordingly.

Adjustment Interval:
On an adjustable rate mortgage the time frame of interest rate adjustment. For example, on a 1 year ARM, the adjustment interval is 1 year.

The systematic and continuous repayment of an obligation through periodic installments until the debt has been paid off in full.

Amortization Period:
That period of time over which a calculated mortgage payment will fully repay a set loan amount at a set interest rate.

Annual Percentage Rate:
The actual interest rate the borrower pays when all the costs of obtaining credit are included.

One who applies for a real estate loan (the prospective borrower/mortgagor).

A report made by an appraiser setting forth an opinion or estimate of value.

Appraised Value:
An estimation of property value made by an appraiser.

An expert qualified by education, training and experience who sets forth an opinion or estimate of value of a property, based on available facts and an inspection of that property.

See Annual Percentage Rate.

See Adjustable Rate Mortgage.

Assignment of Rents:
A legal document (sometimes included in the security instrument) that assigns all rents and income from a property to the mortgagee. If properly invoked after default, the mortgagee has a right to assume management of the property and collection of the rents from the subject property.

A means by which the title/mortgage may be transferred to another party with or without release of liability on the note.

Balloon Mortgage:
A mortgage with periodic installments of principal and interest that, at the end of such a period, do not fully amortize the loan. The balance of the mortgage due is usually paid in a lump sum at a specified date, usually at the end of the term of such periodic installments. The most common type of balloon mortgage has a term of 30 years with a balloon payment due in 15 years. 

Balloon Payment:
The unpaid, principal amount of a mortgage loan that is due on a specified date, and paid in a lump sum at the end of the term.

Legal relief from the payment of all debts after the surrender of all assets to a court-appointed trustee. Assets are distributed to creditors as full satisfaction of debts, with certain priorities and exemptions. A person, firm or corporation may declare bankruptcy under one of several chapters of the U.S. Bankruptcy Code: Chapter 7 covers liquidation of the debtor's assets; Chapter 11 covers reorganization of bankrupt businesses; Chapter 13 covers payments of debts by individuals through a bankruptcy plan.

The entity or individual designated to receive the income from a trust, insurance policy, estate or trust deed. In a deed of trust, the lender is referred to as the beneficiary.

A sum of money paid to the lender at closing to reduce the borrower's out-of-pocket monthly payment. A buydown can be temporary or permanent.

On ARMs, a limit placed on payments, interest rates and/or the balance of a loan. Caps can limit increases by either a dollar amount (payment cap; balance cap) or a percentage (interest rate cap)

Cash-Out Refinance:
A refinance loan where the borrower receives cash at the closing.

Certificate of Title:
A document which assures the buyer that the person selling the property is indeed the legal owner of the property and that no one else has any legal claim to the property. This certificate does not protect against loss if a hidden claim emerges after purchase of a property - only a title insurance policy can do that.

Closing (Loan Closing):
The process that brings a loan into legal existence, including the signing of all loan documents, their delivery to the appropriate parties, and the disbursing of at least some of the loan funds.

Closing Costs:
Costs, in addition to the price of the property itself, that are due at closing. These costs normally include, but are not limited to, origination fees, discount points (see Points), attorney's fees, costs for title insurance, surveys, recording documents, and prepayments of real estate taxes and insurance premiums held by the lender.

Closing Statement:
A statement of the funds received and spent at the closing of a real estate sale. The closing statement is furnished by the real estate closing agent to the buyer and seller separately. The standardized federal form, HUD-1, is used in most residential transactions. Also know as settlement statement.

Cloud on Title:
An outstanding claim/lien or restriction on the property that, if valid, affects the owner's clear ownership rights to the property. A cloud can be removed from the title by a court action, a release or a deed.

A party who signs the mortgage note along with the borrower and who shares the title to, and the obligation to pay for, the property with the borrower. Also called "co-mortgagor."

Property pledged as security for a debt. For example, real estate securing a mortgage. Collateral can be repossessed if the loan is not repaid.

An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to compliance with stated conditions. Also know as a mortgage commitment, or commitment letter.

See Co-borrower.

A form of ownership of real property. The purchaser receives title to a particular unit and a proportional interest in certain common areas. A condominium generally defines each unit as a separately owned space limited to the interior surfaces of the perimeter walls, floors and ceilings. Title to the common areas is in terms of percentages and refers to the entire project less the separately owned units.

Conventional Loan:
A mortgage loan not insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA).

A party who signs the mortgage note along with the borrower, but who does not own or have any interest in the title to the property.

A person to whom a debt is owed by another person who is the "debtor."

Credit Report:
A document completed by a credit-reporting agency providing information about the buyer's credit cards, previous mortgage history, bank loans and public records dealing with financial matters.

A small excess amount of funds which many lenders may require be kept in an escrow account.

A sum of money due by certain and express agreement.

Debt to Income Ratio:
Income analysis used by lenders in qualifying a borrower for a loan. It is the relationship between the borrower’s monthly income to the total of all monthly payments (for example, car, credit card and proposed PITI payments).

The formal written document that transfers the rights of ownership and possession (that is, the title) from the seller to the buyer.

Deed in Lieu of Foreclosure:
A transfer of title to real property, from a delinquent mortgagor to the mortgagee, given voluntarily to satisfy the balance due on a defaulted loan and to avoid foreclosure proceedings. Also called "voluntary conveyance."

Deed of Trust:
A legal document which conveys title to real estate to a disinterested third party (trustee) who holds the title until the owner of the property has repaid the debt. In states where it is used, a deed of trust accomplishes essentially the same purpose as a mortgage. Also called "trust deed" or "trust indenture." Three people are involved in a deed of trust: the borrower, the lender and the trustee. The borrower transfers the legal title for the property to the trustee who holds the property as a security for the debt. If the borrower pays the mortgage as agreed, the trustee gives the legal title to the owner. If the borrower does not pay the mortgage as agreed, the trustee can sell the property. (See Security Instrument; Mortgage.)

A breach or non-performance of the terms of a note or the covenants of a mortgage or deed of trust.

Deferred Interest:
Applicable to some types of mortgages. If monthly payments do not cover the interest cost, the interest left unpaid is deferred to later years by adding it to the unpaid principal balance. In subsequent months, charged interest is added to this unpaid interest.

Deficiency Judgment:
In the event that the sale of a foreclosed property does not provide an amount of money sufficient to cover the balance due on the loan, a judgment may be sought against the borrower, who is personally liable for the difference. If the deficiency is granted by the court, this judgment can be collected from the borrower from other property, other assets owned or by garnishment.

A loan payment that has not been received 30 days after its due date.

Demand Letter:
A notice issued to a borrower, warning of the imminent danger of foreclosure. .

Department of Housing and Urban Development:
An agency of the United States government that is responsible for the implementation and administration of government housing and urban development programs.

With reference to the sale of real estate, a sum of money given to either bind a sale of real estate or assure payment or an advance of funds in the processing of a loan. Also known as "earnest money."

The amount of money, usually stated as a percentage, deducted from the face value of a note. The borrower receives the net amount after the discount has been deducted. The discount is computed to give the effective rates of interest agreed upon.

Down Payment:
The difference between the sales price of real estate and the amount of the mortgage loan.

Due-On-Sale Clause:
A clause allowing the lender to demand payment of the entire loan balance upon sale or other transfer of title by the borrower to a third party.

Earnest Money:
See Deposit.

A right to the enjoyment or access of land held by another. An easement is a non-ownership interest in land.

See Equal Credit Opportunity Act.

An improvement that intrudes or invades illegally upon another's property.

A right, lien or claim attached to real property that passes with title. For example, easements, judgment liens, and mortgages that may reduce the property's market value.

An addition made to a document, such as a title policy, in order to alter or clarify it.

Equal Credit Opportunity Act:
Federal legislation that prohibits a creditor from discriminating in mortgage lending on the basis of race, color, religion, national origin, sex, marital status, age, income derived from public assistance programs, or previous exercise of Consumer Credit Protection Act rights.

The difference between the value of the real estate property and all liens against the property.

Escrow Account:
An account held by the lending institution to which the borrower pays monthly installments for property taxes, insurance and special assessments, and from which the lender disburses these sums as they become due.

Escrow Agreement:
An agreement to allocate funds to be set aside in a special account to guarantee payments that occur after settlement.

Escrow Payment:
The portion of a borrower's monthly payment that is set aside by the lender in an escrow account to pay the taxes, hazard insurance, mortgage insurance, ground rents and other special items as they come due.

Federal Housing Administration:
A federal agency within the U.S. Department of Housing and Urban Development (HUD). Using loan insurance programs to insure mortgages for lenders, the Federal Housing Administration (FHA) stimulates the availability of housing for low- and moderate-income families.

Fee Simple:
The greatest possible interest a person can have in real estate, including the right to dispose of the property or pass it on to heirs without limitation.

See Federal Housing Administration.

FHA Mortgage:
A mortgage with federally sponsored mortgage guaranty insurance provided through the Federal Housing Administration (FHA).

First Mortgage:
A loan on real estate that creates a paramount and prior lien against real property.

Fixed Interest Rate:
A mortgage feature that structures the loan so that there will be no increases or decreases in the interest rate during the life of the loan.

Fixed Rate Mortgage:
The type of loan where the interest rate will not change for the entire term of the loan.

An action to eliminate the interest of a borrower in real estate so as to give the lender good title.

Fully Indexed Accrual Rate:
The base index value of an adjustable-rate mortgage (ARM) plus the highest margin during the life of the loan.

A legal proceeding in which a person's money or wages are taken for payment of a debt. The amount that may be taken is set by statute (usually as a percentage) and, in most states, a judgment is necessary before garnishment.

Good Faith Estimate:
A written document that provides a breakdown of the estimated closing charges.

Graduated Payment Mortgage:
A mortgage in which the monthly payments will generally increase for a set period of time and then reach an amount that remains constant for the rest of the amortization period. This increasing payment feature can be incorporated into fixed-rate or floating-rate loans. For example, the borrower may agree to make initial monthly payments of $700 that will rise gradually to $900 by the fifth year, where the payment will stay for the remainder of the loan.

Hazard Insurance:
A broad form of casualty insurance coverage for real estate that includes protection against loss from fire, certain natural causes, vandalism and malicious mischief.

Homeowner's Package:
A broad form of insurance coverage for real estate that combines hazard insurance with personal protection and other items. Also known as a Homeowner's Policy.

Homestead Exemption:
A state statutory exemption that protects homestead property, usually to a set amount, against the attachment rights of creditors. Property tax exemptions for all or part of the tax are also available in some states. Statutory requirements to establish a homestead may include a formal declaration to be recorded.

See Department of Housing and Urban Development.

HUD Information Booklet:
Describes the closing process and costs and the loan applicant's rights under the Real Estate Settlement Procedures Act (RESPA).

Any permanent structures to land such as buildings, fences and driveways, as well as landscaping, drainage, utilities, etc.

On ARMs, the measurement used by lenders to determine changes in the accrual rate. The index is used with the margin to determine a new interest rate at the time of adjustment. If the index increases, the interest rate increases unless an interest rate cap is reached. Often, the index is based on the interest rates for U.S. Treasury securities.

Initial Interest Rate:
The beginning interest rate at the start of an adjustable-rate mortgage (ARM). It may be lower than the fully indexed rate or "going market rate" and it will remain constant until it is adjusted up or down on the adjustment date.

A charge for borrowing money. It is usually expressed on an annual rate, or as a percentage, of the money still owed. For example, the interest rate might be 10.00%. If a person borrowed $10,000 and agrees to pay it in full at the end of one year, the interest will be $1,000.2) A right, share or title in property. 3) A general term meaning partial or total right to a property. An interest in real estate might be a right, such as an easement (see Easement), a lease or partial or full ownership.

Interest Rate:
The percentage of an amount of money which is paid for its use for a specified time; usually expressed as an annual percentage.

Joint Tenancy:
Joint ownership by two or more persons giving each person equal interest and equal rights in the property, including the right of survivorship.

Final determination by a court of the rights and claims of the parties to an action.

Junior Lien:
A loan secured by a mortgage that does not stand in a first lien position. Also called "junior mortgage" or "subordinate lien" or "subordinate mortgage". A second mortgage is a junior lien.

Junior Lienholder:
An individual or entity owning a junior lien.

Late Charge:
An additional charge a borrower is required to pay as a penalty for failure to pay a regular mortgage loan installment when due; a penalty for a delinquent payment.

A written agreement stating the conditions for the possession and use of real estate (and/or personal property) given by the owner (landlord) to another person (the tenant) for a specified rent and period of time.

Letter of Demand (Payoff Statement):
A prepared, formal statement showing the current status of the loan account, all sums due on a date certain to fully pay the loan balance, and the daily rate of interest.

A legal encumbrance or claim of one person on the property of another as security for a debt or charge.

Any person or organization who holds a legal claim over the specific property of another as security for debt.

The letting out or renting of money by a lender to a borrower, to be repaid with or without interest.

Loan Balance:
The amount of principal that a borrower owes.

Loan Balance Cap:
Only applicable to adjustable-rate mortgages (ARMs) with deferred interest or negative amortization (see Deferred Interest). Because the loan balance may increase with some types ARMs, many lenders place limits on how much deferred interest may be added to the original loan balance. If, during the life of the loan, the unpaid principal owed exceeds this limit, the borrower can no longer defer interest. The monthly payment must be increased to pay all monthly interest due and enough of the monthly principal to fully pay off the loan within its remaining life.

Loan Closing:
A meeting between borrower and lender in which transfer of ownership is accomplished, funds and deed are exchanged, and all loan documents, including the promissory note and mortgage, are signed.

Loan to Value:
Mathematical computation that compares the loan amount to the value of the property.

Loan-to-Value Ratio:
The ratio, expressed as a percentage, of the amount of a loan (numerator) to the lesser of the appraised value or selling price of real property (denominator). For example, if the loan amount is 75,000 and the appraised value is 102,000, and the selling price is 100,000, the loan to value ratio is 75.00%.

Lot Equity:
If a borrower owns the land and is seeking a mortgage for a home under construction, the value of the land may be recognized as a down payment equivalent to cash.

See Loan to Value and Loan-to-Value Ratio.

Under the terms of an adjustable-rate mortgage, the margin is a premium that a lender charges which is added to the index. This premium is typically two or three percentage points. Once the lender specifies the margin, it remains fixed. The index plus the margin equals the interest rate on an ARM, subject to any interest rate caps.

Mechanic's Lien:
A claim created by law for the purpose of securing priority payment for work performed and material furnished by a mechanic or other person who has done construction or repair of a building. Such a claim attaches to the land as well as buildings and improvements erected on land.

Modification Agreement:
Any agreement between the lender and the borrower that permanently alters any of the terms of the original mortgage or note.

A pledge or security for the payment of a debt.

The institution, group or individual that lends money on the security of pledged real estate; the lender.

Mortgage Guaranty Insurance:
Insurance that protects the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price. The federal government writes this form of insurance through the Federal Housing Administration. On conventional loans, the insurance is provided by private companies and is called private mortgage insurance (PMI).

Mortgage Guaranty Insurance Premium:
The amount paid by a mortgagor for mortgage guaranty insurance either to the FHA or a private mortgage guaranty insurance company.

Mortgage Note:
A written promise to pay a sum of money at a stated interest rate during a specified term. It is usually secured by a mortgage. Also know as a "Note".

The owner of real estate who pledges his property as security for the repayment of a debt; the borrower.

Negative Amortization:
The gradual increase in the balance of a loan, caused by adding unpaid interest to the loan balance. The unpaid interest is a result of monthly payments being less than the amount required to pay the interest. Negative amortization can occur on a potential or scheduled basis. (a) Potential negative amortization: Negative amortization that results from borrower optional payment caps.(b) Scheduled negative amortization: Negative amortization that is scheduled to occur during the life of the loan.

Non Owner-Occupied Property:
Property purchased by a borrower not for a primary residence.

Note Rate:
The interest rate on the mortgage loan.

Notice of Default:
A notice recorded after the occurrence of a default under a deed of trust or mortgage. Typically required by an interested third party that has insured or guaranteed the loan.

Offer to Purchase:
A document completed by a home buyer specifying the terms and conditions under which real estate will be purchased.

Open End Mortgage:
A mortgage with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and the borrower. A Home Equity Line of Credit is an open end mortgage.

Origination Fee:
The fee that the lender charges the borrower to cover the cost of originating a mortgage loan. It pays for processing the loan which includes collecting information about the borrower's creditworthiness and the property. The fee is usually computed as a percentage (for example, 1%) of the mortgage loan.

Owner/Occupied Property:
The borrower or a member of the immediate family lives in the property as a primary residence.

Perfecting Title:
The process of eliminating any and all claims, other than the owner's, to the title of a property. (See Title.)

See Principal Interest Tax Insurance.

PITI Ratio:
Compares the amount of the borrower’s monthly income to the amount the borrower will owe each month in principal, interest, real estate tax and insurance on a mortgage. It is commonly used by lenders in determining whether or not to grant the borrower a loan. (see Qualifying Ratios.) Also called "housing to income ratio".

Planned Unit Development:
A project that may consist of any combination of one- to four-family homes, condominiums and other styles of residential housing. The individual unit and often the real estate under it are owned by the individual owner. The common facilities are owned and maintained by a homeowner's association.

Pledged Account:
Funds put into an account to cover the difference in monthly payments of a graduated payment mortgage loan. Money is withdrawn to supplement the lower monthly principal and interest payment to bring it up to the necessary amount needed to amortize the loan within the contracted term.

Pledged Account Loan:
A loan partially secured by the buyer or third party depositing funds into a savings account as collateral security for the loan. A portion of the monthly payment may be drawn from the account over the certain initial years of the loan.

An amount equal to one percent of the principal amount of a note. Loan discount points are a one-time charge assessed at closing by the lender to increase the yield on the mortgage loan.

Prepaid Interest:
Interest that the borrower pays the lender before it becomes due.

A loan repayment made in advance of its contractual due date.

Prepayment Penalty:
A penalty under a note, mortgage or deed of trust imposed when the loan is paid before its maturity date.

Principal Balance:
The outstanding balance of a mortgage, exclusive of interest and any other charges.

Principal Interest Tax Insurance:
The total mortgage payment, which includes principal, interest, taxes and insurance.

Private Mortgage Insurance:
Mortgage guaranty insurance provided by a private company (not an agency of the federal government)

Gathering the loan application and all of the required supporting documents (including the property appraisal, credit report, credit history, and income and expenses) so that a lender can consider the borrower for a loan.

Promissory Note:
A document in which the borrower promises to pay a stated amount on a specific date. The note normally states the name of the lender, the terms for payment and any interest rate.

See Planned Unit Development.

Purchase Money:
Refers to a loan for the purpose of purchasing a home, rather than a loan refinance or home improvement loan.

Qualifying Ratio:
Income analysis used by lenders in qualifying a borrower for a loan. There are two types of qualifying ratios: Debt to Income Ratio and PITI Ratio.

Rate and Term Refinance:
The borrower replaces a mortgage loan on the subject property with another mortgage loan for the purpose of getting a lower interest rate and/or shorter loan term.

Real Estate Settlement Procedures Act:
Federal legislation designed to help home buyers compare settlement costs among lenders and to eliminate kickbacks.

Real Property:
Land and anything permanently affixed to the land, such as fences, buildings and those things attached to the buildings, such as light fixtures or plumbing. May refer to rights in real property as well as the property itself.

The payment of a debt from the proceeds of a new loan, using the same property as security.

To avoid or cancel in such a way as to treat the contract or other object of the rescission as if it never existed.

See Real Estate Settlement Procedures Act.

Reverse Annuity Mortgage:
A type of mortgage loan in which someone who owns their home free and clear (that is, has paid off all mortgages on the property) receives monthly payments from a lender for a short period of time, usually less than 10 years. At the end of the mortgage, the owner agrees to refinance the loan or sell the property to pay off the loan. Such payments from the lender are often beneficial for retired people, who know they won't be in a house for more than five or 10 years, because the payments can help them make tax and insurance payments.

Sales Contract:
A written agreement between competent parties stating all terms and conditions of a sale.

Satisfaction of Mortgage:
The legal document, usually recorded, that proves that the borrower completely paid off the mortgage loan. It is given to the borrower by the lender.

Secured Party:
Usually the lender who holds the security interest in, or lien on, a property. Also known as "mortgagee." (See Security Interest, Lien.)

The collateral or property given, deposited or pledged to ensure the fulfillment of an obligation or payment of a debt.

Security Instrument:
A recorded legal document given by the borrower to the lender. It pledges the title of the property as insurance to the lender for the full payment of the mortgage. Mortgages, deeds of trust, and deeds to secure debt are considered security instruments. (See Mortgage, Deed of Trust.) The security instrument contains the description of the property.

Security Interest:
The legal right or share that the mortgage lender holds to the property.

Settlement Statement:
The complete breakdown of costs involved in the real estate transaction for both the seller and buyer.

Special Assessment:
A claim against a property, which arises when a major improvement (ie, a sewer line, street paving,street lighting) is made by the local/state government. The total cost is distributed among the benefited properties. Failure to pay any installment of a special assessment may result in foreclosure by the political entity which is responsible for the assessment.

Subordinate Lien:
See "Junior Lien".

A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions and the location and dimensions of any improvements. It is useful in determining if boundary violations (encroachments) exist.

Tax Lien:
A lien on a property by local, state or federal government for the amount of due and unpaid taxes.

Tenancy in Common:
In law, the type of tenancy or estate created when real or personal property is granted, devised or bequeathed to two or more persons in the absence of express words creating a joint tenancy. There is no right of survivorship.

See Truth-in-Lending Act.

The evidence of the right to or ownership in property. In the case of real estate, the documentary evidence of ownership is the title deed, which specifies in whom the legal state is vested and the history of ownership and transfers. Title may be acquired through purchase, inheritance, devise, gift or through the foreclosure of a mortgage.

Title Insurance Binder:
A report issued by a title insurance company stating the condition of title to certain property as of a certain date and also stating conditions which, if satisfied, will cause a policy of title insurance to be issued. Also called "commitment."

Title Insurance Policy:
A contract by which the insurer, usually a title insurance company, indicates who has legal title and agrees to pay the insured a specific amount of any loss caused by clouds, claims or defects of title to real estate. (a) Owner's Title Policy: Usually issued to the landowner. The owner's title insurance policy is bought and paid for only once and then continues in force without any further payment. Owner's Title Insurance policies are not assignable. (b) Mortgagee's Title Policy: Issued to the mortgagee and terminates when the mortgage debt is paid. In the event of foreclosure, or if the mortgagee acquires title from the mortgagor in lieu of foreclosure, the policy continues in force, giving continued protection against any defects of title which existed at, or prior to, the date of the policy.

1) Someone who holds the legal title to another's property, usually as security for a debt that person owes a lender. 2) A fiduciary who holds or controls something for the benefit of another. 3) A third party to whom property is legally committed in trust.

In a deed of trust, the borrower is referred to as the trustor.

Truth-in-Lending Act:
Federal legislation that provides borrowers with specific information on the cost of obtaining credit.

In mortgage lending, the process of approving or denying a loan based on an evaluation of the property and the applicant's creditworthiness and ability to repay the loan.

See Veterans Administration.

Variable Rate Mortgage:
See "adjustable-rate mortgage."

Verification of Deposit:
A form sent to each depository listed on the loan application to verify the funds of the borrower at such institution.

Verification of Employment:
A form sent to the borrower's employer to verify the borrower's employment and employment history.

Veterans Administration:
An agency of the federal government which helps veterans obtain long-term, low down payment mortgages. The agency normally does this by guaranteeing a portion of a lender's loans against loss. In return for this guarantee, lenders must follow prescribed procedures for loans established by the Veterans Administration (VA).

See Verification of Deposit.

See Verification of Employment.

Warranty Deed:
A deed used in many states to convey good fee simple title to real property.

Work Equity:
Work to be completed by a borrower on a home under construction that may be applied as part of a down payment. Sometimes referred to as "sweat equity".


1999 Reed Mortgage Corporation. All rights reserved.