S – First Colony
Request a quote

mortgage glossary

A B C D E F G H I J L M N O P R S T U V

Settlement costs

Costs that the borrower must pay at the time of closing, in addition to the down payment. These costs are associated with setting up the mortgage and are often called “closing costs”.

Short sale

An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house for less than is owed and remit the proceeds to the lender. It is an alternative to foreclosure, or a deed in lieu of foreclosure.

Streamlined refinance

Refinancing that omits some of the standard risk control measures (appraisals, verifying debt to income ratios, etc) and is therefore quicker and less costly. FHA offers a streamlined refinance to borrowers who currently have an FHA mortgage that would like to take advantage of lower rates.

Subordinate financing

A second mortgage on the property which is not paid off when a new loan is taken out. The second mortgage lender must agree to subordination of their second loan to the new first mortgage. They are allowing the new loan to remain in first position.