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Confused in the Home Loan jargon? Our glossary
will help you in understanding the basic loan related terms.
Browse through the glossary or serach for a term through the
menu to resolve any doubts.
Glossary of Home insurance
terms
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Second mortgage
A mortgage that has a lien position subordinate to the first
mortgage.
Secondary mortgage market
The buying and selling of existing mortgages.
Secured loan
A loan that is backed by collateral.
Security
The property that will be pledged as collateral for a loan.
Solvency
Solvency is the ability of an insurance company to pay future
claims. In order to remain solvent, insurance companies
must always keep an adequate surplus of funds in case an
unforeseen increase in claims occurs.
Special deposit account
An account that is established for rehabilitation mortgages
to hold the funds needed for the rehabilitation work so
they can be disbursed from time to time as particular portions
of the work are completed.
Step-rate mortgage
A mortgage that allows for the interest rate to increase
according to a specified schedule (i.e., seven years), resulting
in increased payments as well. At the end of the specified
period, the rate and payments will remain constant for the
remainder of the loan.
Subordinate financing
Any mortgage or other lien that has a priority that is lower
than that of the first mortgage.
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