Dominion Residential Mortgage - DRM offers a full range of loan programs to help make your homeownership dream a reality.

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Acceleration Clause

A commonly used clause in a deed of trust/mortgage that permits the payee to declare the entire balance immediately due and payable in the event of default.

Additional Living Expense Insurance

Coverage under a Homeowners, Condominium and Renters policy that reimburses costs of residing in a temporary location until the insureds home can be made whole again. It usually provides living expenses from 10-20% of the structural coverage on the home.

Additional Property

Address of real estate that a person owns that is not being financed.

Adjustable Rate Mortgage (ARM)

A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.

Adjusted Income

Your Gross Receipts Income minus business expenses, which equals total qualifying income.

Adjustment Period

On an ARM, the time between scheduled changes to the loan payment and interest rate, usually one, three or five years, depending on the terms of the specific ARM loan program.

Affidavit

A written statement sworn to before an authorized official.

Agent

One that acts for or represents another.

Agreement of Sale

A written document in which a purchaser agrees to buy property under certain given conditions, and the seller agrees to sell under certain given conditions. Also known as a 'Sales Contract'.

Alimony

Monthly payments received by an ex-spouse. Payments must be received continuously for three years to be counted toward qualifying income for a loan.

Amortization

The repayment of a loan in a specified number of equal periodic payments that includes principal and accrued interest.

Amortization Schedule

A timetable for repayment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and also the remaining balance after each payment is made.

Amortization Term

The period of time used in an amortization schedule to determine the dollar amount of scheduled loan payments, usually expressed as a number of months. For example, a fully amortizing 30-year fixed-rate mortgage has an amortization term of 360 months (30 years 12 months) with scheduled loan payments sufficient to repay all outstanding principal by the end of the amortization term with substantially equal installment payments. When the amortization term is longer than the actual loan term, the final payment required to be made (sometimes called a "balloon" payment) is larger than the preceding installment payments. For example, a 7-year balloon mortgage may have schedule loan payments determined based on an amortization term of 180 months (15 years x 12 months) even though the final loan payment is due at the end of 7 years.

Amortized Loan

A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.

Amount Financed

The loan amount minus the prepaid finance charges.

Annual Percentage Rate (APR)

The annual cost of a loan, including interest, loan fees, and other costs.

Application

A form commonly referred to as a 1003 form, used to apply for a mortgage and to provide information regarding a prospective mortgagor and the proposed security.

Application Deposit

A deposit that is charged upon submission of a property application in all states but New Jersey and North Carolina. The cost to submit is $295 for a single family residence or condominium, and $450 for a two or more unit property. The Application Deposit will be used to pay the fees and costs of an appraisal and, if funds are sufficient, may be applied to other costs of the loan transaction such as the credit report and title cancellation fees.

Application Fee

A fee that is charged upon submission of a property application in New Jersey and North Carolina. A loan consultant will contact you with details about the amount of your specific application fee.

Application Fee/Deposit

An application deposit is charged upon submission of all property applications on the internet. In all states but New Jersey and North Carolina, the cost is $295 for a single family residence or condominium, and $450 for a two or more unit property. The Application Deposit will be used to pay the fees and costs of an appraisal and, if funds are sufficient, may be applied to other costs of the loan transaction such as the credit report and title cancellation fees.
The application fee varies in New Jersey and North Carolina. A loan consultant will contact you with details about the amount of your specific application fee in these states.

Appraisal

An estimate of the market value of a piece of real estate made by a competent professional who knows local real estate prices and markets.

Appraised Value

The estimated value of a home established by a professional who has a knowledge of real estate prices and markets.

Appraiser

A person qualified by education, training, and experience to estimate the value of real property and personal property.

Appreciation

The increase in value or price of a property over time.

Approval

An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.

Assessed Value

The value of a property for tax purposes set by a tax assessor according to a formula.

Assessments

A charge placed by a government agency (for example, city or county) for property improvements such as lighting, sewers, and flood control.

Asset

Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.

Assignment

The transfer of a mortgage from one person to another.

Assignment of Lease

The transfer of all rights, title, and interest under a lease that a lessee or tenant possesses in certain real property. The document used to convey leasehold is called an Assignment of Lease, rather than a Grant Deed or Special Warranty Deed.

Assumability

The ability of a mortgage to be taken over by a new borrower.

Assumable

A loan or obligation that can be taken over by a new borrower.

Assumable Mortgage

A mortgage that can be taken over or 'assumed' by the buyer when a home is sold.

Assumption

A transaction where a new applicant takes over an existing loan. The original borrwer's liability may or may not be released. The lender typically must approve the new buyer who agrees to assume liability. Not all loans are assumable.

Assumption Clause

A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property. See Assumable Mortgage.

Assumption Fee

The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

Auto Pay

A way to set up a monthly payment to be automatically paid from a bank account.

Automobile Expense/Allowance

Payment to our borrower by their employer for using their personal vehicle for business purposes.