The initial interest rate on an ARM before the adjustment periods.
A reduction in the mortgage payment in the early years of the loan in exchange for an upfront cash payment.
Ownership of a property. A clear title is one without any outstanding liens or encumbrances. A cloud on title refers to any outstanding liens or encumbrances which could impair the title.
A policy designed to protect the buyer or lender after closing from financial losses arising from any defects in the title that may have occurred prior to purchase.
TRUTH IN LENDING ACT
The Federal law that specifies the information that must be provided to borrowers on different types of loans. Also, it is the name of the form used to disclose this required information. It is often issued by the lender with the Good Faith Estimate.