S&L - Top

Savings and Loan Association.

Safe Harbor - Top

A set of rules and regulations that will guarantee compliance with the law, if followed.

Safe Rate - Top

An interest rate provided by low-risk investments such as high grade bonds or secured first mortgages.

Sale-leaseback - Top

A technique in which a seller deeds property to a buyer, who simultaneously leases the property back to the seller.

Sales Contract - Top

An agreement between a buyer and seller to purchase real estate.  A sales contract, also known as a purchase and sale agreement, secures the right to purchase real estate upon agreed terms for a limited period of time.

Second Mortgage - Top

A loan that has a lien position subordinate to the first mortgage.

Secondary Mortgage Market - Top

The market where lenders and investors buy and sell existing mortgages or mortgage backed securities, providing greater availability of funds for additional mortgage lending.

Secured Loan - Top

A loan that is backed by collateral.

Security - Top

The collateral offered to a lender in exchange for a loan.  When a lender provides a mortgage, you provide your home as the security.  This means that if payments are in default, the lender has the right to take title to the property.

Security Interest - Top

The lender's right to take property that has been offered as security.

Seller take-Back - Top

An arrangement in which the owner of a property provides financing.

Servicer - Top

A company that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer may or may not be the original lender.

Settlement - Top

The settlement will take place at the office of an escrow company, title company or attorney in your area. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you, but in some states, these two events actually happen separately.

During the settlement you will be reviewing and signing several loan papers. The escrow agent or attorney conducting the closing should be able to answer any questions you have or you can feel free to contact your Loan Officer if you prefer.

Settlement or Closing Fee - Top

A fee charged by a title company, closing agent or attorney to perform the closing of a real estate transaction.

Settlement Statement - Top

Also referred to as the HUD-1 or the closing statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.

Standard Payment Calculation - Top

The process used to determine the monthly payment required to repay the remaining principal balance of a loan in fairly equal installments, over the remaining term of the loan at the current interest rate.

Step Mortgage - Top

A type of adjustable-rate mortgage (ARM) that allows for the interest rate to increase according to a specified schedule. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan. Sometimes called a step-rate mortgage.

Subdivision - Top

A housing development that is created by dividing a large parcel of land into many individual lots for sale.

Subordinate Financing - Top

Any mortgage or other lien that has a lower priority than that of the first mortgage.

Survey - Top

A precise measurement of a piece of property by a licensed surveyor.  The survey is typically a written map of the property showing locations of buildings and boundaries.

Sweat Equity - Top

Contribution to the construction of a property in the form of labor or services, instead of cash.

Swing Loan - Top

Sometimes called a bridge loan or gap loan, a swing loan is generally a loan that is secured by a borrower's current residence to obtain the funds needed to purchase a new home if the current residence will not be sold prior to the purchase of a new home.