Amortization - The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest. 

Appraisal / Appraised Value - A written estimate of a property's current market value based on factors such as: (1) rental income, expenses, capitalization rate, (2) recent sales information for similar properties, (3) cash equivalency value, (4) the condition of a property and (5) the neighborhoods impact on marketability. Lindie Mae reviews all appraisals for quality control for a final determination of value.

Bid Request - Quote Request - The Seller of a note Requests a Bid from Lindie Mae to see how much they will pay a seller for the note. Email us at easyoffer@lindiemaeinc.com

Cash-Out - A refinance for funds in excess of the balance of the current mortgage. The excess money taken out goes back to the borrower. 

Combined Loan-to-Value (CLTV) - The percentage of the property purchase price borrowed through a combination of more than one loan. (For example, first mortgage and seller take back 2nd mortgage or line-of-credit). Mathematically, the combined loan amounts divided by property purchase price equals Combined Loan-To-Value Ratio.

Conduit - An entity that serves as intermediary between the lender(s) originating loans and the ultimate investor. 

Corporation - A business entity owned by stockholders; considered an artificial person under law. 

Debt-to-Income Ratio (DTI) - A mathematical representation of the comparison between the recurring (more than 12 payments remaining) debt payments borrowers are obligated to make and their income. It is derived by dividing a borrower's monthly financial obligations by his/her gross monthly income. Also know as (Expense-To-Income Ratio or Back-End Ratio). 

Down payment - A down payment is a sum of money that borrower pays in the early stages of purchasing the property. The down payment represents a portion of the total purchase price, and a borrower will often take out a mortgage loan to finance the remainder.

Expense Reimbursements - Operating expenses paid by the landlord, but reimbursed by the borrower. Also called recoveries, reimbursement billables or pass throughs. 

FICO or Credit SCORE - A credit evaluation score developed by Fair Issac and Co, TransUnion or Experian, used by lenders as one factor in making a loan decision. Some methods of improving a score are to establish and maintain a payment history on credit accounts; keep public records (bankruptcies, judgements, etc) and collection accounts to a minimum; pay down loans; keep credit cards well below their limits; avoid late payments and limit applying for new credit. 

Forced Place Insurance (FPI) -  Protection insurance which is an insurance policy placed by a lender, bank or loan servicer on a home when the property owner's insurance is cancelled, has lapsed or is deemed insufficient, and the borrower does not secure a replacement. 

Gross Lease - A lease in which the lessor (owner) is responsible for all costs and expenses of the property. 

Homeowners Insurance Declaration Page (HIDP): A homeowners insurance declaration page is a document provided by your insurance company that summarizes the coverage provided by your home owners insurance policy. 

Industrial Property - This building classification includes facilities used for light manufacturing businesses, and auto-related businesses. Funeral homes, rooming houses, and marinas are included as well by Lindie Mae. 

Lender's Title Policy and Owner's Title Policy (LTP / OTP) - Lender's title insurance protects the lender and their successors against problems with the title to the property. For example,- someone with a legal claim against the home. Lender's title insurance only protects the lender against problems with the title. Borrower's purchase Owner's title insurance if they wish to protect themselves against problems with the title. 

Limited Liability Company (LLC)- A type of company authorized only in certain states, whose owners and managers receive the limited and (usually tax benefits of an S Corporation without having to conform to the S Corporation restrictions).  

Limited Partnership - A form of business ownership that consists of one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only for the amount of their investment. Limited partners also enjoy rights to the partnership's cash flow, but are not liable for company obligations. 

Loan-To-Value (LTV) Ratio - The percentage of the property value borrowed (loan amount divided by property value = loan-to-value ratio). 

Mortgage Note or Loan: Is a promise by one party (Borrower) to pay another party (Lender) that is secured by Real Estate (Collateral). 

Mixed Use - Property Type with two or more harmonious uses, such as a building with retail shops on lower floors and apartments on upper floors. 

Mobile Home Park - A contiguous parcel of privately owned land which is used for the accomodation of ten or more mobile homes occupied for year-round living. 

Multifamily - Apartment properties with five or more units. 

Net Operating Income (NOI) - The amount remaining after total operating expenses (excluding interest payments) are deducted from effective gross income. 

Occupancy: Owner Occupant, 2nd home, or property with rents. 

Prime Rate - Interest rate commercial banks charge their most creditworthy customers for short-term loans. Prime is a yardstick for trends in interest rates, and it is often a baseline for establishing interest rates (i.e prime + x%).

Refinance - The payoff of one loan with proceeds from another, using the same property as collateral. Primarily used to lower the interest rate or receive "cash out" (The difference between a new mortgage amount and payoff balance).

Retail  Shops - Property types such as grocery stores, strip centers, outlet centers, and small stores. 

Seasoning- Number of monthly payments made on the mortgage loan. 

Self-Storage - Buildings in which consumers may lease personal storage space. 

Strip Center - (Unanchored) - A property type occupied by multiple tenants of which none are well-known commercial retail businesses such as a national chain store or regional department store. Typical gross building area ranges from 50,000 to 100,000 square feet. 

Trust - A fiduciary relationship whereby legal title to a property is transfered to a trustee with the intention that such property be administered by the trustee for the benefit of another, the beneficiary, who holds equitable title to such property. 

Variable Rate Mortgage (VRM) or Adjustable Rate Mortgage (ARM) - A mortgage loan or deed of trust that allows the lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the inception of the loan.