A binding pledge made by the lender to the borrower to make a loan, usually at a stated interest rate within a given period of time for a given purpose, subject to the compliance of the borrower to stated conditions. Any fee paid by a potential borrower to a lender for the lender's promise to lend money at a specified rate and within a given time. An instrument used in many states in place of mortgage. Delinquency A loan payment that is overdue but within the period allowed before actual default is declared. Depreciation A loss of value in real property brought about by age, physical deterioration, functional or economic obsolescence.
Discount Points See Points.
When the note rate on a loan is less than the market rate, the lender requires additional points to raise the yield on the loan to the market rate. Earnest Money A portion of the down payment delivered with a purchase offer by the purchasor of real estate to the seller or an escrow agent as evidence of good faith. Also known as a deposit. A Federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, sex, age, marital status, receipt of income from public assistance programs or past exercising of rights under the Consumer Credit Protection Act. The ownership interest - that portion of a property's value over and above the liens against it.