I/J/K

Question 1

INDEX

Answer 1

A published interest rate that, when combined with a margin, is used as the basis upon which the note rate of ARM will adjust.

Question 2

INTEREST ONLY (I-O)

Answer 2

A loan program in which the borrower’s payments are directed only toward the interest due on the loan, and are not used to repay principal.

Question 3

INTEREST RATE BUYDOWN PLAN

Answer 3

An arrangement that allows a party to deposit money to an account. That money is then released each month to reduce the mortgagor’s monthly payments during the early years of a mortgage. See Temporary Buy-Down.

Question 4

INTERIM FINANCING

Answer 4

Short-term financing made to cover costs while waiting for the requirements of a permanent loan to be met. A construction loan is a common example of an interim loan.

Question 5

Initial Rate Cap

Answer 5

A limit on the amount by which the interest rate can increase during the first adjustment period for an ARM.

Question 6

JOINT TENANCY

Answer 6

An arrangement in which two or more people hold equal ownership of a property, and the interest of any deceased tenant(s) is subsequently transferred to the surviving tenant(s).

Question 7

JUDICIAL FORECLOSURE

Answer 7

A foreclosure process that is initiated by the lender filing a suit in a court of law.

Question 8

JUMBO LOAN

Answer 8

A loan that exceeds the lending limits established by Fannie Mae and Freddie Mac for conforming loans.
a.k.a.: Nonconforming loan

Question 9

JUNIOR MORTGAGE

Answer 9

A mortgage that is subordinate to the claims or lien positions of other mortgages recorded against a property.

Question 10

Kickback

Answer 10

The payment of money or a thing of value as compensation or reward for completing certain actions.