Glossary

Get easy to understand definitions for common mortgage terms from the Mortgage Insider. In our glossary, we define the word, tell you about in industry usage, and usually give an example so you can fully and easily understand not just the meaning but the function of the word.

Cash Out Refinance

Cash Out Refinance Defined
A cash out refinance is when a borrower converts home equity to cash by refinancing with a new mortgage with a higher principal balance than the current mortgage in order to pocket the difference.
For example, your home is worth $300,000 and your current mortgage balance is $200,000. You can [...]

Closing Costs

Closing Costs Defined
Closing costs are fees paid up front when obtaining a mortgage. These are fees like origination, appraisal, title, discount, recording, underwriting, processing, etc.
Closing costs are technically just the fees that go to the originator and any other third party like an appraiser or title company. However, there are other [...]

Conforming Mortgage

Conforming Mortgage Defined
A conforming mortgage is a conventional mortgage that is less than or equal to the conforming loan limit.
The current conforming loan limit is $417,000. However, there are geographic areas where the loan limit is different, for example, in high cost areas like Silicon Valley or Manhattan.
The conforming loan limit [...]

Contract

Contract Defined
A contract to buy and sell real estate is a document with all the terms, conditions, and price agreed upon by the seller and buyer for a property. It can also be called a purchase agreement. The real estate agent prepares the contract to submit to the seller and their agent. [...]

Conventional Mortgage

Conventional Mortgage Defined
A conventional mortgage is a mortgage that follows the loan limit, pricing, and underwriting guidelines of Fannie Mae and Freddie Mac. and are insured by one of the same two companies. These mortgages are not, subprime, FHA or VA mortgages. FHA and VA mortgages are insured by the government directly through [...]

Counterproposal

Counterproposal Defined
A counterproposal is a document used after a contract to buy and sell real estate is presented to the seller. The seller may accept the contract by signing or modify the terms with an addendum to the contract in a new additional document called a counterproposal. A counterproposal is also called a [...]

Curing a Mortgage

Curing a Mortgage Defined
To cure a mortgage in default is to pay all the back payments, interest, and legal fees before the foreclosure process reaches the auctioning of the home.
When a mortgage is cured, it is back in force and you can continue making payments just like you did before you defaulted. [...]