Similar to a mortgage. Default Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage. Delinquency Failure to make mortgage payments when mortgage payments are due. The amount paid either to maintain or lower the interest rate charged. The difference between the purchase price and that portion of the purchase price being financed.
Most lenders require the down payment to be paid from the buyer's own funds.
Gifts from related parties are sometimes acceptable, and must be disclosed to the lender. The cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Useful in comparing loan programs with different rates and points. Encumbrance A claim against a property by another party which usually affects the ability to transfer ownership of the property.