MORTGAGE TERMS DICTIONARY
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Waiver |
| The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege. |
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Warehousing |
| Mortgage bankers and other financial institutions make loans that are then periodically sold on the secondary market. After the loan is made but before it is sold - the loan is said to be in the lenders warehouse. |
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Warranty Deed |
| A deed conveying the title to a property with a warranty of a clear marketable title.
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Wraparound Mortgage |
A loan arrangement whereby the existing loan is retained an a new loan is added to the property.
Example : The seller sells his/her property for $200,000. The buyer puts $80,000 down. The seller has an existing loan balance of $100,000 for a remaining period of 25 years at an interest rate of 6%. The seller then makes a wraparound mortgage to the buyer, (where the seller acts as a lender) for $120,000 at 8%. The seller has to continue making payments on his old loan. They buyer has to pay the seller on the new loan. The buyer may at a later date refinance the property and close both loans.
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