A comparison of gross income to housing and non-housing expenses; With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.
The document that transfers ownership of a property.
To avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure.
The inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms.
Failure of a borrower to make timely mortgage payments under a loan agreement.
Normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan.
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.