DU Refi Plus

Desktop Underwriting Refi Plus is a loan program under the Home Affordable Refinance Program through Fannie Mae. The loan guidelines are under Fannie Mae and serviced by lenders. Fannie Mae allows homeowners to refinance over 100% percent of the value of their existing home depending on qualified borrowers and will sometimes accept borrowers with credit scores lower than 640 – case by case. The guidelines are more relaxed regarding income documentation and some scenarios may waive a new...

Due-on-Demand Clause

A provision of a mortgage or deed of trust that allows a lender to demand immediate payment of the balance of the loan if very specific criteria relating to fraud and misrepresentation are met.

Equity

The difference between the fair market value and current indebtedness referred to as the owner's equity. The value an owner has in real estate over and above the obligation against the property.

Escrow

The escrow accounts are special accounts that a lender uses to hold a borrower’s monthly payments towards property taxes, homeowner's insurance andmortgage insurance if applicable. By distributing these annual fees as components of monthly mortgage payments paid by the borrower, you don’t have to worry about getting an exorbitant bill in the mail that you can’t afford. Instead, you pay a portion of the expected fee into an escrow account throughout the year and the lender disburses payment for these fees when they become...

Escrow Account

An account held by the lender into which the home buyer deposits money for taxes and/or insurance payments. Escrow accounts may also hold other funds related to a real estate purchase such as earnest money.

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