A provision in a loan document stating that the entire loan may become immediately due if a certain, predetermined event occurs, such as if the loan goes into default.

A mortgage in which the interest rate changes periodically to coincide with fluctuations in a corresponding index. Virgin Money ARMs are tied to the prime rate as reported in the Wall Street Journal.

A payment schedule where each payment includes both principal and interest; typically the payment due is the same amount from payment to payment.

A repayment schedule where the payment occurs once a year.

This is the rate that the Internal Revenue Service (IRS) requires as a minimum for private loans so that they will not be considered a gift. The rate changes monthly; the current rate can be found here.

This is a highly reliable and efficient nationwide electronic funds transfer system to provide for the inter-bank transfer of electronic payments. Virgin Money uses ACH to transfer funds between borrowers' and lenders' bank accounts.

A type of payment schedule where the entire remaining principal is paid in a lump sum balloon payment.

The bank account details of the borrower and the lender required for Virgin Money to set up automatic payment processing.

Occurring every two years.

Just as for individuals, credit reporting agencies collect and report on a business's credit history. Virgin Money reports to Dun and Bradstreet for business clients who opt for this free service.

A mortgage refinancing where the loan amount is greater than the debt owed to the original lender, allowing the homeowner to turn some of the home's equity into cash and use it for other purposes.

The sequence of actions required to properly transfer ownership of a property. In some states a real estate transaction is not consider "closed" until the documents are recorded at the local recorders office. In other states, the "closing" is a meeting where all of the documents are signed and money changes hands.

Services provided by Virgin Money to assist private borrowers and lenders in organizing and managing a closing.

The assets used to secure a loan. In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust. Also known as security.

The record of a person's borrowing and repayment history.

A debit date is the date a payment is withdrawn from the borrower's bank account. If the due date is a weekend or banking holiday, the debit will take place on the following banking day.

A legal document which serves the same purpose as a mortgage, required in some states.

A period of time when no payments come due though the loan start date has passed. Deferments are common in business loans, allowing the borrower a number of months to get the business running before the repayment obligation begins.

The automatic electronic deposit of the agreed upon payment amount into the designated bank account of the lender.

A due date is the date a payment is due as agreed upon in the promissory note.

An electronically based rather than paper-based system of transferring money. One of the most widely used EFT methods is to transfer funds using the Automated Clearing House network (ACH), a computer network that connects all US financial institutions. Virgin Money uses ACH to debit and credit loan repayments.

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

Once each year your lender or escrow servicing agent will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.

The review of the chain of title as revealed by an abstract of the title or public records.

A federal law whose purpose is to ensure that agencies that prepare credit reports act fairly, accurately and with respect to privacy rights. The FCRA also gives individuals the right to get a copy of their credit report.

The Federal National Mortgage Association, commonly known as Fannie Mae, is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.

The mortgage which creates a lien that has precedence over all other lenders in the event of default.

A type of payment schedule where the borrower determines an amount he or she can afford to pay then adjusts other loan terms, such as the length of the loan, to achieve a payment schedule which results in that fixed amount.

A lender may decide to make a gift of a payment by letting the borrower and Virgin Money know in writing 3 business days before the due date.

An agreed-upon number of days after a payment's due date before it is considered late. When the period has passed, a late fee, if specified, will be assessed.

The months that the business borrower designates as the period in which revenue is significantly higher due to the seasonal nature of the business. In a seasonal loan, the payment schedule shows a higher amount that is due during high season, and a lower amount due in the off, or low season months.

A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions; loan fees, points, and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet."

A monetary benefit paid by a borrower for the right to use a lender's funds.

The date interest will begin to accumulate on a loan, as decided by the parties to the loan. Typically, the interest start date is set as the date the loan closes.

A type of repayment schedule where initially each payment repays only the interest obligation up until a predetermined date; after that date, both the principal and remaining interest are paid according to an amortized schedule.

A common type of ownership allowing two or more parties to share equal rights to a property, and allowing the survivor to hold all these rights if one party dies (known as the “right of survivorship.”)

The penalty a borrower must pay when a payment is made after the stated grace period.

The party that makes funds available to the borrower in exchange for a promissory note promising repayment, usually with interest.

Money lent for temporary use, usually in exchange for interest payments.

A tool which asks the user to supply certain key loan terms and generates a payment schedule. You can find a loan calculator here.

The total amount of money needed to meet a borrower's outstanding obligation on a loan.

Collecting principal, interest, and sometimes property taxes from the borrower; accounting for the amount received; and remitting the payment to the lender.

Key facts about a loan, including loan amount, loan term, interest rate and repayment schedule.

A single payment with no further payments due, often a balloon payment.

A legal agreement which pledges real property to a lender as security for repayment of a debt, usually the debt incurred to purchase the property in question. In some states, a different legal instrument called a deed of trust fulfills a similar function even though it is not legally the same.

The promissory note and the mortgage.

A written document informing the borrower that default has occurred; the notice may include a description of what can be done to “cure” or fix the default.

A document setting forth the terms at which a buyer is prepared to purchase a property.

A document showing a property's legal owner, legal description and any outstanding liens.

A cash amount reflecting the remaining principal balance, any outstanding late fees, and interest owed up to the date of the payoff. Virgin Money customers may request a payoff quote to determine the exact amount due to payoff the loan in one lump sum on a specified date.  The figure also includes a per diem interest rate so if the payoff does not occur when expected, clients can calculate the additional interest owed to lender.

How often payments will be made on the loan.

The date of the first loan payment, typically one month after the loan's start date.

A loan used for a purpose considered personal, such as to buy a car, to pay for education, to refinance or consolidate credit card debt, or for emergency expenses.

A fee that may be charged to a borrower who pays off a loan in part or in full before it is due. It is not in the borrower's interest to agree to a clause containing a prepayment penalty.

The original loan amount.

A loan between two private parties.

A legally binding document acknowledging the lending of a sum of money and stating that the borrower will repay the lender a specified amount over a specified period of time. Technically it's the borrower's “promise to repay” the lender. The borrower signs the document, and the lender holds the original until the loan is repaid.

Payments occurring 4 times a year, once every three months.

Land and any buildings on it.

Fee charged by the County Clerk 's office for recordation of Deed, Mortgage or Deed of Trust. This is a fee paid at closing for exact charges.

The recording in the registrar's office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.

The unpaid amount of a loan.

The list of due dates and payment amounts generated from the terms of a loan.

A real estate transaction in which the buyer leases back the property to the seller for a specific period of time.

The multiple by which payments in the high season are greater than those in the low, or off, season. For example, two times, three times or four times.

A market of lenders that buy existing loans, usually in groups, or pools, providing originating lenders with the capital to make new loans.

An agreement between a borrower and lender in which the borrower grants the lender an interest in some piece of the borrower's personal property as collateral for the loan.

Occurring twice a year.

A simultaneous closing is when a seller finances the sale of his or her property and then sells the note and mortgage they receive to a note buyer or other third party.

Any mortgage or other lien that has a priority that is lower than that of the first mortgage.

An account required by a mortgage lender to fund annual property tax assessments and hazard insurance premiums for the mortgaged property.

A legal document which provides evidence of a person's right to or ownership of a property.

Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.

Any means by which the title to a property changes hands.

One who holds property in trust for another to secure the performance of an obligation.

A loan which is not secured by collateral.

A closing where a Notary Public is used to document the authenticity of the signatures of the parties and who might also be called upon to record the mortgage.

An end-of-year report Virgin Money generates for every loan documenting the payment history for the year, also called an account history.