ADJUSTABLE-RATE MORTGAGE (ARM)
A mortgage loan where the interest rate is not fixed for the entire term of the loan, and can change during the life of the loan in line with movements of an index rate.


CREDIT SCORE
A numerical assessment assigned to the customer by credit bureaus that represents a measurement of the customer's overall credit rating. The scores are weighted and range from approximately 365 to 840. Low scores reflect a "high risk", while higher scores reflect a "lower risk". Each credit bureau has its own credit score system.


EQUITY LINES OF CREDIT
A combination of a line of credit and equity loan secured by real property. A maximum loan amount is established based on credit and equity. A mortgage is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the credit line.


LOAN TO VALUE (LTV)
Sum of the total liens on a piece of real property divided by the property's appraised value.


PMI
Insurance paid by the borrower, on the loan in question, to protect the lender in case the borrower defaults.


SINGLE FAMILY RESIDENCE (SFR)
A standard home with no common areas, no homeowners' dues or sharing of common walls. A home intended to be occupied by 1 family.