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.
Mortgage Bank Defined
A mortgage bank is a retail mortgage originator that sells loans directly to the public and funds those loans with their own money. Unlike a mortgage broker who also sells loans directly to the public but must use the funds of a wholesale lender to close, a mortgage bank uses its own [...]
Mortgage Broker Defined
A mortgage broker is the middle man between you and a wholesale source that funds your loan. The wholesale source is called a wholesale lender. The mortgage broker brings you and the wholesale lender together.
A mortgage broker’s big claim to fame is the ability to shop your loan to [...]
Mortgage Insurance Defined
Mortgage insurance is an insurance policy that protects the lender in the event the borrower defaults on the mortgage.
Mortgage insurance is not homeowners insurance.
Mortgage insurance will not pay off the mortgage if you die.
It doesn’t offer any protection to you at all. It is protection for [...]
Mortgage Lien Defined
A mortgage lien gives the lender the right to take back the property when the borrower does not make the mortgage payments. A mortgage lien is filed by the lender and recorded in the county where the property is located.
Mortgage liens are ranked by title position. A first mortgage [...]
