A mortgage requiring periodic payments which include both a partial repayment of the debt and interest on the outstanding balance. One basis point is equal to one-hundredth of one percent. A single mortgage registered against two or more individual parcels of real property. The interest rate on an increased mortgage which is derived from a formula that takes into account the interest rate on the existing loan and the interest rate on the increase mortgage amount. The percentage of a borrower's income that can be used for housing costs.
Equity is the owner's stake in the property.
A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet the mortgage obligations. A contract between a borrower and a lender. The borrower pledges a property as security to guarantee repayment of the mortgage debt. A mortgage that can be prepaid or renegotiated at any time and in any amount, without penalty. Prepayment Clause A clause inserted in a mortgage, which gives the mortgagor the privilege of paying all or part of the mortgage debt in advance of the maturity date.