Real Estate Glossary |
MATURITY DATE: The end of the term, at which time you can pay off the mortgage or renew it. MORTGAGEE: The person or financial institution that lends the money. MORTGAGOR: The borrower. MORTGAGE INSURANCE: Applies to high-ratio mortgages. It protects the lender against loss if the borrower is unable to repay the mortgage. MORTGAGE LIFE INSURANCE: Pays off the mortgage if the borrower dies. OPEN MORTGAGE: Allows partial or full payment of the principal at any time, without penalty. PORTABILITY: A mortgage option that enables borrowers to take their current mortgage with them to another property, without penalty. PRE-APPROVED MORTGAGE: Qualifies you for a mortgage before you start shopping. You know exactly how much you can spend. PREPAYMENT PRIVILEGES: Voluntary payments in addition to regular mortgage payments. PRINCIPAL: The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount. REFINANCING: Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage. TERM: The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender. TITLE: Legal ownership in a property. VARIABLE-RATE MORTGAGE: A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal. VENDOR TAKE-BACK MORTGAGE: When the seller provides some or all of the mortgage financing in order to sell their property. |