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Interest Only

The interest-only portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment from...

Periodic Rate Cap

A cap that is placed on a resetting or periodic interest rate. It is usually purchased by a borrower who...

Pipeline Risk

The risk that mortgage brokers encounter in their business- i.e., provision of commitments to mortgage borrowers. It arises from adverse...

Deficiency Judgment

The amount for which a mortgagor/ borrower facing foreclosure is held personally liable if the sale proceeds of the foreclosed...

GPM

It stands for graduated payment mortgage; a fixed rate mortgage that entails low payment (of interest and repayment of principal) in...

Jeep Mortgage

A fixed rate mortgage that entails low payment (of interest and repayment of principal) in the early years, and thereafter...

Tequila Crisis

A financial crisis, widely known as the Mexican peso crisis, that was originated in Mexico over the span of the...

Graduated Payment Mortgage

A fixed rate mortgage that entails low payment (of interest and repayment of principal) in the early years, and thereafter...

Self-Amortizing Loan

A loan that is paid back in equal periodic installments. An installment constitutes varying portions of principal and interest over...

TAC

It stands for targeted amortization class; a type of bond class that has a schedule for repayment of principal which...