Glossary

Amortization:
Repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period.

Cadastre:
A public register showing the details of ownership and value of land; made for the purpose of taxation.

Capital:
The nominal amount of the mortgage loan, excluding interest.

Creditor:
A party who is owed money such as mortgage lenders, credit card companies and bond holders.

Debtor:
Anyone who is required to satisfy a debt.

Deed:
A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to possess it

Fee:
Amount that the holder or holders of a loan undertake to pay regularly and that is intended to pay part of the capital and asked for their interests.

Financing:
Amount of borrowed money. To purchase a home it is usually between 70% and 80% of actual value of the property to be bought.

Interest rate:
A fixed charge for borrowing Money; usually a percentage of the amount borrowed.

Mortgage:
An instrument recognized as evidence by law by which property is hypothecated or pledged as security for the payment of a debt or obligation and by which a procedure for foreclosure is established by statute in event of default.

Mortgage loan:
A loan on real estate that is usually secured by a mortgage.

Notary:
Someone legally empowered to witness signatures and certify a document's validity and to take depositions.

Penalty:
An extra payment or charge required from a borrower for not complying with the terms of an original loan agreement that is usually charged for making a regular payment late.

Prepayment:
A loan payment that is greater than the amount due or in advance of the due date.

Property:
Everything that is capable of being lawfully owned and acquired with the rights of ownership and which is classified into one of two groups: personal property or real property. The rights to property are to possess, to use and enjoy, to encumber, to dispose of in any legal way and to exclude everyone else from interfering with these rights.

Tax:
An enforced charge demanded of persons, corporations and organizations by the government to be used to support government services and programs.