A market in which investors like GNMA, FHLMC, FNMA and private organizations buy large numbers of mortgages from the primary lenders and either hold them in a portfolio or package them for sale to others. By selling loan in secondary market, lenders obtain the funds needed to make new loans.

A second home/vacation home that is occupied by the borrower for some portion of the year for his/her exclusive use and enjoyment but which is suitable for year-round occupancy. It cannot be subject to a mandatory rental pool and the borrower does not intend to use the property for income purposes.

A loan that is junior to a primary or first mortgage and often has a higher interest rate and a shorter term.

The recordable instrument issued by the lender verifying full payment of a mortgage debt.

A debt that does not have a fixed payment, although repayment is usually a percentage of the outstanding balance and made at regular intervals; most common are credit cards issued by banks or department stores.

A form of mortgage in which the lender makes periodic payments to the borrower using the borrower’s equity in the home as satisfaction of the mortgage (The document issued by the mortgagee when the mortgage loan is paid in full).

Abbreviation for the federal Real Estate Settlement Procedures Act, which requires lenders to disclose information on the nature and costs of the Real Estate settlement process, limits certain fees and charges, and regulates the amount home buyers are required to place in escrow.

A non-U.S. citizen who is granted most of the rights of an U.S. citizen, including permanent residency in the United States. Resident Alien status is usually evidenced by a “Green Card.”

Sometimes referred to as “cash reserves” or “post closing reserves”; this is the amount of liquid assets the borrower has remaining after completion of the Mortgage loan transaction and payment of any other debt(s) that had to be satisfied in order for the borrower to qualify for the loan.

Income generated by renting property to a tenant.