GLOSSARY OF MORTGAGE TERMS

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FINDER’S FEE:
A SUM OF MONEY PAID TO PROFESSIONALS SUCH AS A REAL ESTATE OR MORTGAGE BROKER FOR BRINGING CLIENTS TO A MORTGAGE BROKER OR
LENDING INSTITUTION.

FIRE INSURANCE:
BEFORE A MORTGAGE CAN BE ADVANCED, THE PURCHASER MUST HAVE ARRANGED FIRE INSURANCE. A CERTIFICATE OR BINDER FROM THE INSURANCE COMPANY MAY BE REQUIRED FOR CLOSING.

FIRM OFFER:
AN OFFER TO BUY THE PROPERTY AS OUTLINED IN THE OFFER OF PURCHASE AND SALE AGREEMENT WITH NO CONDITIONS ATTACHED.

FIRST TIME BUYER:
A CLIENT WHO HAS NEVER BOUGHT A HOME OR HAS NOT OWNED A PROPERTY IN THE LAST 5 YEARS.

FIXED RATE MORTGAGE:
A MORTGAGE WHERE THE INTEREST RATE IS SET FOR THE FULL TERM OF THE MORTGAGE, AND CANNOT BE ALTERED WITHOUT INCURRING FEES.

FORECLOSURE:
THE LEGAL COURT ACTION TAKEN BY THE LENDER WHEN DEFAULT OCCURS ON A MORTGAGE. TO TAKE OVER THE EQUITY OF A MORTGAGE.