Arrearage refers to the amount of overdue payments that are owed and unpaid. This can apply to various financial obligations, including loans, mortgages, bond interests, and dividends on cumulative preferred stock.
A financial institution traditionally engaged in accepting deposits and making loans for house purchases or improvements, predominantly found in the UK, Australia, South Africa, Ireland, and New Zealand.
An in-depth definition and overview of Commercial Banks, their functions, examples, frequently asked questions, related terms, resources for further reading, and a fundamental quiz.
The contract price in an installment sale, for tax purposes, is generally defined as the selling price less the existing mortgages assumed by the buyer. This definition is crucial for correctly determining the taxable portion of payments received from the sale.
An encumbrance is any right to, interest in, or legal liability upon real property that doesn't prohibit passing title to the land but diminishes its value. Encumbrances include easements, licenses, leases, timber privileges, homestead privileges, mortgages, and judgment liens.
Escrow Closing is a term used to signify the finalization of real estate transactions, particularly in states where deeds of trust are used in place of traditional mortgages. This process involves an escrow agent ensuring that all documents and funds are properly managed and disbursed.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a publicly owned government-sponsored enterprise (GSE) that was established to enhance the flow of capital in the mortgage market by purchasing and reselling mortgages.
A Graduated Payment Mortgage (GPM) is a mortgage that starts with lower payments in the initial years, which gradually increase in steps over time until the payments are sufficient to amortize the loan fully.
Loan amortization refers to the reduction of debt by scheduled, regular payments of principal and interest sufficient to repay the loan at maturity. It is a fundamental concept in financial planning, allowing borrowers to understand how their loan is repaid over time.
Long-term liabilities are any financial obligations or debt that are not payable on demand or within one year. These can include loans, bonds payable, mortgages, and other financial obligations.
The term 'of record' refers to the official recording of documents such as deeds or mortgages with the appropriate entity, as well as testimony recorded as the official transcript of a legal case. The 'attorney of record' is the officially designated lawyer for a party upon whom legal papers may be served.
A series of equal or nearly equal payments made at the end of each equally spaced period. An ordinary annuity is commonly used in financial products like mortgages, leases, bonds, and retirement accounts.
Financial planning for individuals, which involves analyzing their current financial position, predicting their short-term and long-term needs, and recommending a financial strategy. This may involve advice on pensions, the provision of independent school fees, mortgages, life assurance, and investments.
A registrar is an individual or official body responsible for keeping and maintaining the accurate records of an organization, institution, or legal entity. Their responsibilities vary depending on the field, such as education, real estate, and securities.
A title search is an investigation of documents in the public record office to determine the state of a title, including all liens, encumbrances, mortgages, future interests, and so on, affecting the property; it is the means by which a chain of title is ascertained.
