As for peers, credit concentration is a key … The entity that is offering the loan, for example: the bank, mortgage company, or mortgage broker. An Option Adjustable Rate Mortgage in which the initial rate is guaranteed for the first five years of the loan’s life. (Personal property is not fixed to one location, as are buildings and land properties). (See Negative Amortization). If the borrower defaults on the loan, the trustee has the authority to fulfill the debt to the lender by selling the real property at any time. The primary residence of the borrower/property owner. TROUBLE PAYING YOUR MORTGAGE If you do not have enough money in savings to cover your mortgage payment or rent, contact your lender or landlord immediately. A legal document in which a named individual surrenders the right to ownership and/or interest in a property, or transfers interest to another individual. Refers to the originator of the loan, a lender or mortgage broker. Insurance available to property owners to protect against negligence that results in bodily injury, or property damage to another party. An Adjustable Rate Mortgage that carries the option to be converted to a Fixed-Rate Mortgage under defined terms. Escrow fees are based on the purchase price of real property. A loan clause calling for increases in payments or interest based on pre-determined schedules or a change in an economic index. (Please clarify with mortgage team, various meanings to this term). A mortgage can be owned by a bank, or a bank can service a loan backed by government-sponsored enterprises such as Fannie Mae, Freddie Mac or agencies such as the FHA, which were set up by the government to support and finance the housing market. A legal document granting property ownership. A requirement of lenders to provide the actual total costs of borrowing, as outlined as a provision in the Truth in Lending Act. Profit earned on an asset, such as real property. Don’t wait until you’re behind on payments. An acronym for a mortgage payment that is the sum of monthly principal, interest, taxes, and insurance. Most will have specialist teams, ready to work with you to find a solution — whatever difficulties you’re facing. An inquiry into a property’s title to ensure that the seller is the legal owner of the property for sale, and that there are no outstanding claims or liens against the property. Separately, with respect to consumer mortgages, the executive order directs the DFS Superintendent to ensure that “any licensed or regulated entities provide to any consumer in the State of New York an opportunity for a forbearance of payments for any mortgage … As lenders often buy and sell mortgages and deeds of trust from each other, this term refers to the legal record of transfer from one lender to another. A calculation that is the ratio of monthly liabilities, including housing costs, divided by the monthly gross income of the borrower. I was eligible for the mortgage forbearance program due to covid and took advantage of it - boy what a mistake. (See Adjustable Rate Mortgages), The time elapsed between adjustment dates in an Adjustable Rate Mortgage. A contract that is signed by the buyer and seller, with both parties agreeing on the terms and conditions of the property sale. Forbearance Forbearance is like a pause button. The interest rate lenders charge their most creditworthy borrowers. All rights reserved. A third party surveys a property for defects in structural features and major appliances. A real estate professional trained in the practice of appraisal. A document originated by the borrower’s financial institution that certifies the status and current balance of the borrower’s accounts. It lets you suspend your monthly mortgage payments for a specific amount of time without incurring any penalties or late fees or being reported as delinquent to the credit … The individual, or entity, that handles all paperwork associated with the closing of your loan. ... nor is it intended to indicate the availability or applicability of any Sterling Bank … A short-term loan taken out against a property to finance the purchase of new real estate. A third party that can receive, hold, and/or disburse funds or legal documents. After paying on this loan modification for a … Sterling Bancorp Reports Second Quarter 2020 Financial Highlights Business Wire SOUTHFIELD, Mich. -- August 3, 2020 Sterling Bancorp, Inc. (NASDAQ: SBT) (the “Company”), the … A mortgage that has the ability to be transferred to the new buyer from the seller. An agreement between the lender and the borrower to temporarily suspend or reduce monthly mortgage payments for a set period of time. A payment that is below the monthly minimum required amount. Forbearance is like a pause button. A defined time period over which the borrower commits to make payments to the lender. A stated period of time past a due date before a borrower incurs a late fee, applicable to loans on which interest is calculated monthly. Ally Bank. Due to the Covid-19 Outbreak, many mortgage lenders are offering Forbearance assistance. A document originated by the borrower’s employer proving the borrower’s job title and salary. … When a mortgage payment is made that is less than the interest-only amount, the difference is then added onto the principal balance of the loan. Dec 2011 – Present 8 years 5 months. If seriously interested in a property, it is recommended to request this to determine the status of the property. A borrower has an obligation to repay the principal amount financed from the lending institution, in addition to interest and fees associated with the loan. Prepared by a professional appraiser, a written estimate of a property’s current market value. (See Assumability), The fees payable to a lender for the assumption of an existing mortgage. Fees charged by lenders and third parties related to the purchase of a home. The various duties a lender performs to protect a mortgage loan, such as collecting payments on a monthly basis from borrowers, assessing late fees to delinquent payments, etc. The total dollar amount your mortgage loan will cost you, including loan lifetime interest payments and fees. (See Truth in Lending Act). A lien against a property or restriction to its use, held by someone other than the legal owner. Fees associated with creating the mortgage loan, typically paid at loan closing. Typically when an appraisal is warranted in connection with a loan, the lender selects the appraiser but the borrower incurs the appraisal fee. As outlined in a mortgage agreement, the right of a lender to demand repayment of a full loan balance if the borrower violates one or more particulars in a contract. Refers to any change to the original mortgage agreement. Sterling Bank and Trust is a community bank offering online banking and bill pay, competitive CD and mortgage rates. The ‘first-step’ to obtaining your dream home, which involves assessment of your credit score/debt-to-income ratio in determining a dollar amount of a mortgage. A specified date on which the loan will be disbursed or funded. Although a single mortgage loan will be used, this type of real property contains separate housing units for more than one family. (See Combined Loan-to-Value Ratio). As eligible borrowers have the lowest chance of defaulting, lenders can charge a lower rate. Monetary difference between the value of a mortgage loan and the price at which the note can be sold at in the secondary market. Defaulting on a loan can ultimately lead to foreclosure, as failure to make payments can potentially enable the lender to take ownership of the property. The net gain a borrower receives from refinancing. On an Adjustable Rate Mortgage, the maximum percentage of negative amortization allowed on an ARM. Forbearance may be an option for homeowners that are facing a temporary hardship and/or ineligible to refinance. (See Monthly Payment). The process of determining the final estimate of value of real property after surveying several approaches in a property’s appraisal. Western Region Coordinator A monetary commitment by a potential home buyer to show intention on purchasing the real property. A mutual agreement between a delinquent borrower and lending institution to allow the borrower to avoid foreclosure by making payments on past due amounts as well as regularly scheduled payments. An increase in a property’s value resulting from improvement by the property’s owner. The difference between how much your home is worth and how much you owe on it. Stop by any branch and be treated like family. Must be reported by all lenders under Truth in Lending laws. Once the loan is repaid in full, the title is officially transferred to the borrower. Know who backs your mortgage . Differing from a mortgage and deed of trust, a promissory note is held by the lender until it is repaid in full. We have a variety of mortgage calculators to help you review different scenarios and select the mortgage that is best for your situation. Buying a home can be stressful, but financing doesn’t have to be. Monthly Expenses, including housing payments, divided by gross monthly income. A liquid market in which mortgage loans and servicing rights are exchanged between financial institutions and investors. The lender disburses these funds on behalf of the borrower at arranged intervals. The legal process in which the lender legally takes ownership of the borrower’s property, once the borrower has defaulted on his/her mortgage loan, A payment made by a borrower to a mortgage broker. The number of months required to amortize a mortgage loan. All rights reserved. It also provides an estimate of how much you may be able to borrow – a good first step in your house-hunting journey. A maximum monetary amount that a borrower is approved for. Any ‘movable’ asset that refers to all except real estate. Refers to real estate property, ex: buildings and land. A mortgage that is paid in 13 full payments or 26 half payments annually. An individual who reviews a loan application to determine whether to approve or deny a mortgage loan in accordance to the lender’s criteria. The costs associated with an underwriter assessing a prospective borrower’s complete loan application. We want to empower you to make decisions that help you throughout the mortgage process. There may be fees incurred from the lender for the assumption of the loan, but as there are not closing costs, this may be a lower cost opportunity. A requirement for all mortgage applicants, also known as a Freddie Mac (65) or a Fannie Mae Form 1003. An examination into a potential borrower’s income and liabilities, with taking into account the type of mortgage that will be used including fees and closing costs. The last step in the mortgage loan process, referring to the process of signing the loan documentation. A mortgage loan that is financed to include insurance and taxes. A legal agreement between a seller and buyer, in which a buyer assumes the payments on an existing mortgage. Differing from a mortgage, a deed of trust enables foreclosure without judicial proceedings. Obtaining your credit report for purposes of applying for a mortgage loan. At an individual’s time of death, an ‘Estate’ is also defined by the sum of real and personal property owned by an individual. There are various costs generated with the purchase of a home. When facing an economic hardship, this may be an option provided to borrowers. One or more individuals who have agreed to share equal responsibility for repaying a loan, signing documentation equally. A promissory note is not recorded in county land records. A legal document that identifies ownership of a property (personal or real). A history of titles for a property, used to determine if there is an existing claim against a property. State or local tax that is charged when a property title exchanges from one party to another. Through Sterling, you can be connected with financing solutions for almost any situation, including purchasing or refinancing a house, condo or co-op, a second or vacation home, or investor properties. Under the Mortgage Forbearance Regulation, regulated institutions are required to (i) make applications for forbearance of any payment due on a residential mortgage of a property located … A real estate transaction in which the sale proceeds are less than the balance on the outstanding loan. A lender’s process of determining a prospective borrower’s ability to satisfy a loan. By originating loans, the commission received by brokers from lenders. This agency aims to protect consumers by overseeing Fannie Mae and Freddie Mac. The cost of real property in addition to the value of improvements made to the property minus depreciation. © 2021 Sterling Bank & Trust - A promissory note secured by a mortgage, which obligates a named borrower to repay a loan at a specified interest rate over a set period of time. Can you extend your forbearance period? Sterling Bank is a registered trademark of Sterling Bank and Trust, FSB. The property on which the borrower lives the majority of year. An amount added to the interest rate index to determine the interest rate on an Adjustable Rate Mortgage. This includes all legal actions (grants, wills and conveyances, liens, transfers, and encumbrances). Qualification ratios compare your gross income to your expenses, including the estimated cost of housing expenses. Filing documents related to a property’s title for public record. An outstanding claim against real property in the sum of its outstanding taxes. Interest fees that exceed the legal rate established by law. When completing your mortgage loan application, this is the total amount you earn monthly, excluding taxes or expenses. (See Adjustable Rate Mortgage), A defined time period in which the initial interest rate remains unchanged in an Adjustable Rate Mortgage. Costs associated with the preparation and transmission of all funds and related legal documentation. Typically determined by an appraisal, the suggested selling price of a real property. All loans in forbearance are eligible modifications under Section 4013 of the 2020 CARES Act and therefore are excluded from the delinquency and nonperforming loan totals. Payment caps that limit the frequency and amount of periodic, initial, and lifetime changes in interest rates on Adjustable Rate Mortgages. Real Estate Settlement Procedures Act (RESPA), Uniform Residential Loan Application (URLA), Checking the credit report of the borrower. An individual’s ownership of real property. The use of a mortgage loan to pay off other outstanding liabilities. The following list includes such potential fees included: The calendar date on which the closing occurs, officially allowing the real property to exchange hands between buyer and seller. Payments are applied first to paying down the interest on the loan, with the remaining payment being applied to the balance of the principal. A report that is available at the end of a 12-month period, showing the remaining loan balance and the total amount of interest paid. In an Adjustable Rate Mortgage, a specified period of time in the beginning months of the loan in which the interest rate is fixed. ... Forbearance allows you to pause or reduce your mortgage … Also called Payment-to-Income Ratio or Front-End Ratio, this calculation is the ratio of the monthly mortgage payment to total earned gross monthly income. When multiple individuals possess a property title but ownership is expressed in stated percentages. An act governing the transparency of closing costs in a property transaction to all involved parties. Requesting a home inspection as a contingency in your purchase offer may allow the seller to make necessary repairs before the transfer of ownership occurs. Failure to submit payments on time, or meet other guidelines of a loan. In an Adjustable Rate Mortgage, this limits the payment fluctuations that can occur in any one adjustment period. (See Adjustment Date). In an Adjustable Rate Mortgage, the highest interest rate possible under ARM guidelines. Sterling is a small Nigerian bank, accounting for 3% and 4% of domestic banking system assets and customer deposits, respectively, at end-2019. A type of loan that requires the borrower to use the equity of the owned property as collateral. The portion of your monthly mortgage payment that is allocated to directly reduce your loan balance. A contract endorsed by both the buyer and seller disclosing the terms and conditions of the property sale. (See Amortized Loan). Although a borrower may be qualified, meaning that one has the ability to pay, a poor credit history may reveal that the borrower has made delinquent payments and may not be a reliable applicant. A method that avoids foreclosure by deeding your property to the lender. Loans are subject to credit and property approval. Once the percentage is reached, there is an automatic increase in the payment. Payment of an outstanding loan balance in full. An estimated average interest rate for a mortgage loan at a given time. Regardless of age, sex, and/or race, the elimination of discrimination in finance. Charges incurred when a loan payment is received after the grace period. As the interest becomes reduced, a larger portion of the payment is applied to the principal balance. The interest rate remains the same for the entire term of the loan.