Mortgage Glossary

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Savings and Loan Association.
Safe Harbor
A set of rules and regulations that will guarantee compliance with the law, if followed.
Safe Rate
An interest rate provided by low-risk investments such as high grade bonds or secured first mortgages.
A technique in which a seller deeds property to a buyer, who simultaneously leases the property back to the seller.
Sales Contract
Sales Disclosure
A state specific form that may need to be filed, disclosing everything about the sale of the home.
A person who is licensed to make real estate transactions while under the supervision of a broker licensed by the state.
Search and Exam Fee
Search and Survey
Search Fee
Second Mortgage
A loan that has a lien position subordinate to the first mortgage.
Secondary Mortgage Market
The buying and selling of existing mortgages, primarily residential first mortgages.
Secured Loan
A loan that is backed by collateral.
Security Interest
The lender's right to take property that has been offered as security.
Seller take-Back
An arrangement in which the owner of a property provides financing.
A company that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer may or may not be the original lender.
A meeting of parties involved in a real estate transaction to finalize the process. In the case of a purchase, the settlement usually involves the seller, the buyer, the real estate broker and the lender. In the case of a refinance, the settlement involves the borrower and the lender. Sometimes referred to as the closing or the close of escrow.
Settlement or Closing Fee
A fee charged by a title company, closing agent or attorney to act as a representative and agent for the lender to perform the closing of a real estate transaction.
Settlement Statement
Also referred to as the HUD-1 or the closing statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.
Simple Interest
An amount earned on an account holder's principal, according to a specified rate. This does not include any compounding interest.
Standard Payment Calculation
The process used to determine the monthly payment required to repay the remaining principal balance of a loan in fairly equal installments, over the remaining term of the loan at the current interest rate.
State Tax Stamps
State/Local Tax Fees
Stated/Documented Income
"Some loan products require only that applicants "state" the source of their income without providing supporting documentation such as tax returns."
Step Mortgage
A type of adjustable-rate mortgage (ARM) that allows for the interest rate to increase according to a specified schedule. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan. Sometimes called a step-rate mortgage.
A housing development that is created by dividing a large parcel of land into many individual lots for sale.
Subordinate Financing
Any mortgage or other lien that has a lower priority than that of the first mortgage.
"If you are refinancing your first mortgage and have an existing second or home equity line, one option is to "subordinate" the second mortgage: request that your second mortgage holder go back into the second lien position when you replace your existing first mortgage with the new refinance loan."
A print showing the measurements of the boundaries of a parcel of land, together with the location of all improvements on the land and sometimes its area and topography.
Survey Affidavit
Sweat Equity
Contribution to the construction of a property in the form of labor or services, instead of cash.
Swing Loan
Sometimes called a bridge loan, a swing loan is generally a loan that is secured by a borrower's current residence to obtain the funds needed to purchase a new home if the current residence will not be sold prior to the purchase of a new home.