- U -
UNDERWRITING The
process of evaluating a loan application to determine the risk
involved for the lender. Underwriting involves an analysis of
the borrower's credit-worthiness and the quality of the property
itself.
UNSECURED LOAN A
loan that is not backed by collateral.
- V -
VA MORTGAGE A mortgage
that is guaranteed by the Department of Veterans Affairs (VA).
Also known as a government mortgage.
VESTED Having the
right to use a portion of a fund such as an individual retirement
fund. For example, individuals who are 100 percent vested can
withdraw all of the funds that are set aside for them in a retirement
fund. However, taxes may be due on any funds that are actually
withdrawn.
DEPARTMENT OF VETERAN AFFAIRS
(VA) An agency of the federal government that guarantees
residential mortgages made to eligible veterans of the military
services. The guarantee protects the lender against loss and
thus encourages lenders to make mortgages to veterans.
- W -
WHAT-IF-ANALYSIS
An affordability analysis that is based on a what-if scenario.
A what-if analysis is useful if you do not have complete data
or if you want to explore the effect of various changes to your
income, liabilities, or available funds or to the qualifying
ratios or down payment expenses that are used in the analysis.
WHAT-IF-SCENARIO A change in the amounts that
is used as the basis of an affordability analysis. A what-if
scenario can include changes to monthly income, debts, or down
payment funds or to the qualifying ratios or down payment expenses
that are used in the analysis. You can use a what-if scenario
to explore different ways to improve your ability to afford
a house.
WRAPAROUND MORTGAGE
A mortgage that includes the remaining balance on an existing
first mortgage plus an additional amount requested by the mortgagor.
Full payments on both mortgages are made to the wraparound mortgagee,
who then forwards the payments on the first mortgage to the
first mortgagee.
- X -
- Y -
YARDSTICK A standard
used for purposes of comparison. Also called a benchmark.
YIELD The annual
rate of return on an investment, expressed as a percentage.
- Z -
ZOMBIE A bankrupt
company that continues to operate while it awaits closure.
ZONE A division
of different areas.
ZONING Classification
of allowable land use by the government
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