Calyx Point 7 User Manual page 508

fixed rate
A loan that has a "fixed," or level, payments over the life of the loan (normally 15 to 30
years). Each payment contributes toward reducing principal until the loan is fully
amortized. Payments can be monthly or bi-weekly.
flood zone
The zones that apply to a building or mobile home. If any portion of a property lies within
the Special Flood Hazard Area (SFHA), the entire property is considered to be in that
area.
GPM (Graduated Payment Mortgage)
A type of flexible-payment mortgage where the payments increase for a specific period of
time and level off. This type of mortgage has negative amortization built into it.
HMDA (Home Mortgage Disclosure Act)
Requires lenders to disclose annually all home loans made or purchased and all
applications taken by census tract by the race, gender and income of the applicants and
borrowers.
hybrid option ARM
A newer composite of a hybrid ARM and an option ARM. They offer the payment flexibility
of the option ARM (including the potential for negative amortization), but also provide the
rate stability of the hybrid ARM. They manage this successful merging of features by
letting borrowers choose to fix an interest rate for the first three, five or seven years
following the note date.
index
A published interest rate against which lenders measure the difference between the
current interest rate on an adjustable rate mortgage and that earned by other investments
(such as one- three- and five-year U.S. Treasury security yields, the monthly average
interest rate on loans closed by savings and loan institutions, and the monthly average
costs-of-funds incurred by savings and loans), which is used to adjust the interest rate on
an adjustable mortgage up or down.
life of loan (LOL)
A certification that provides lifetime tracking for the lender on a property's flood zone
status.
LTV (Loan-to-Value)
The percentage of the appraised value (or the sales price, whichever is less) to the loan
amount of the property. Determines if an impound account is required, the term of
mortgage insurance, the down payment and qualifying debt ratios.
MSA/MD Number
Metropolitan Statistical Area/Metropolitan Division. This term is used in HMDA
registration, and is interchangeable with Metropolitan Area.
margin
The amount a lender adds to the index on an adjustable rate mortgage to establish the
adjusted interest rate and determine the interest rate actually paid. The margin added to
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