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The right of the mortgagee (lender) in Dubai to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Dubai Due-on-Sale Clause.

Is a Dubai mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the re-negotiable rate mortgage in Dubai, the variable rate mortgage.

On an adjustable rate mortgage, the time between changes in the Dubai interest rate and/or monthly payment, typically one, three or five years, depending on the index.

Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

Is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit cost in Phuket. The Dubai APR allows home buyers in Dubai to compare different types of Dubai mortgages based on the annual cost for each loan.

An estimate of the value of property, made by a qualified professional called an "appraiser".

A local tax in Dubai levied against a property for a specific purpose, such as a sewer or street lights.

The agreement between buyer and seller in Dubai where the buyer takes over the payments on an existing mortgage from the seller in Dubai. Assuming a loan in Dubai can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges in Dubai will apply.

Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

A mortgage covering at least two pieces of Dubai Real Estate as security for the same mortgage in Dubai.

One who applies for and receives a loan in the form of a mortgage in Dubai with the intention of repaying the loan in full.

An individual in the business of assisting in arranging funding or negotiating contracts for a client buy who does not loan the money himself. Dubai Brokers usually charge a fee or receive a commission for their services in Phuket.

When the Dubai lender and/or the home builder in Dubai subsidized the mortgage by lowering the interest rate during the first few years of the loan in Dubai. While the payments are initially low, they will increase when the subsidy expires.

The amount of cash derived over a certain period of time from an income-producing Dubai property. The cash flow should be large enough to pay the expenses of the income producing property (mortgage payment, maintenance, utilities, etc).

Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan.

Consumer safeguards which limit the amount monthly payments on an adjustable rate mortgage may change.

The meeting between the buyer, seller and lender or their agents in Dubai where the Dubai property and funds legally change hands. Also called settlement. Closing costs usually include an origination fee, discount points, a Dubai appraisal fee, Dubai title search and insurance, survey, local Dubai taxes, Dubai deed recording fee, credit report charge and other costs assessed at settlement. The cost of closing usually are about 1.5 percent to 6 percent in Dubai of the mortgage amount.

A promise by a lender in Dubai to make a loan on specific terms or conditions to a borrower or builder in Dubai. A promise by an investor in Dubai to purchase mortgages from a lender with specific terms or conditions. An agreement, often in writing, between a lender in Dubai and a borrower in Dubai to loan money at a future date subject to the completion of paper work or compliance with stated conditions.

A short term interim loan to pay for the construction of buildings or homes in Dubai. These are usually designed to provide periodic disbursements to the builder as he progresses the property development in Dubai.

A contract between purchaser and a seller in Dubai of real estate in Dubai to convey title after certain conditions have been met. It is a form of installment sale.

A report documenting the credit history and current status of a borrower's credit standing in Dubai.

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income in Dubai. See housing expenses-to-income ratio in Dubai.

In Dubai, this document can be used in place of a mortgage to secure the payment of a note.

Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage in Dubai.

When a mortgage in Dubai is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See Negative Amortization in Dubai.

Failure to make payments in Dubai on time. This can lead to foreclosure.

See point.

Money paid to make up the difference between the purchase price and the mortgage amount in Dubai.

A provision in a Dubai mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home in Dubai.

Money given by a buyer in Dubai to a seller in Dubai as part of the purchase price to bind a transaction or assure payment.

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

An account held by the lender in Dubai into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending loan closing.

A promise by a lender to insure a mortgage loan in Dubai for a specified property and borrower in Dubai . A promise from a lender to make a mortgage loan in Dubai .

The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage in Dubai for the original borrower.

A legal process in Dubai by which the lender or the seller in Dubai forces a sale of a mortgaged property n Dubai because the borrower has not met the terms of the mortgage. Also known as a repossession of property in Dubai.

A promise by one party in Dubai to pay a debt or perform an obligation contracted by another if the original party in Dubai fails to pay or perform according to a contract.

A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.

The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.

That portion of a borrower's monthly payments held by the lender or servicer to pay for Dubai taxes, hazard insurance, Dubai mortgage insurance, lease payments, and other items as they become due. Also known as reserves.

A published interest rate against which lenders in Dubai measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year Dubai Banks, the monthly average interest rate on loans closed by savings and loan institutions in Dubai , and the monthly average costs-of-funds incurred by savings and loans in Dubai ), which is then used to adjust the Dubai interest rate on an adjustable mortgage up or down.

A construction loan in Dubai made during completion of a building or a project in Dubai. A permanent loan usually replaces this loan after completion.

A money source for a lender in Dubai.

A claim upon a piece of property in Dubai for the payment or satisfaction of a debt or obligation in Dubai.

The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.

The highest price that a buyer would pay in Dubai and the lowest price a seller would accept on a property in Dubai. Market value in Dubai may be different from the price a Dubai property could actually be sold for at a given time.

Money paid to insure the mortgage in Dubai when the down payment is less than 20 percent. See private mortgage insurance, Dubai mortgage insurance.

The Dubai lender.

The borrower or homeowner in Dubai .

Occurs when your monthly payments are not large enough to pay all the interest due on the loan from the bank in Dubai. This unpaid interest is added to the unpaid balance of the Dubai loan. The danger of negative amortization is that the home buyer in Dubaiends up owing more than the original amount of the loan.

The borrower's gross income minus Dubai income tax.

A statement in a mortgage contract forbidding the assumption of the mortgage in Dubai without the prior approval of the Dubai lender. Note: The signed obligation to pay a debt, as a mortgage note.

The fee charged by a lender in Dubai to prepare loan documents, make credit checks, inspect and sometimes appraise a property in Dubai ; usually computed as a percentage of the face value of the loan.

A long term Dubai mortgage, usually ten years or more. Also called an "end loan."

Principal, Interest, Dubai Taxes and Insurance. Also called monthly housing expense.

Money is placed in a pledged savings account with a bank in Dubai and this fund plus earned interest is gradually used to reduce mortgage payments.

Prepaid interest assessed at closing by the Dubai lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).

A legal document accepted in Dubai authorizing one person to act on behalf of another in Dubai.

Necessary to create an escrow account in Dubai or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.

A privilege in a mortgage permitting the borrower in Dubai to make payments in advance of their due date.

Money charged for an early repayment of debt in Dubai. Prepayment penalties are allowed in some form (but not necessarily imposed) in Dubai.

The amount of debt, not counting interest, left on a loan.

In the event that you do not have a 20 percent down payment, lenders in Dubai will allow a smaller down payment - as low as 5 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on you loan's structure.

A real estate broker in Dubai or an associate holding active membership in a Dubai real estate board affiliated with the Dubai Association of Realtors.

The cancellation of a contract. With respect to mortgage refinancing in Dubai, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the Dubai home as security.

Money paid to the lender in Dubai for recording a home sale with the Dubai authorities, thereby making it part of the Dubai public records.

Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.

A loan in which the interest rate is adjusted periodically. See adjustable rate mortgage.

A form of mortgage in which the lender in Dubai makes periodic payments to the borrower in Dubai using the borrower's equity in the home as Satisfaction of the Dubai Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a "release of mortgage."

A mortgage made subsequent to another mortgage in Dubai and subordinate to the first one.

The place where primary mortgage lenders in Dubai sell the mortgages they make to obtain more funds to originate more new loans in Dubai. It provides liquidity for the lenders. Security.

All the steps and operations a lender performs in Dubai to keep a loan in good standing, such as collection of payments, payment of Dubai taxes, Dubai insurance, property inspections in Dubai and the like.

See Dubai closing/closing costs.

A mortgage in which a borrower in Dubai receives a below-market interest rate in return for which the lender (or another investor in Dubai such as a family member or other partner) receives a portion of the future appreciation in the value of the Dubai property. May also apply to mortgage where the borrowers in Dubai shares the monthly principal and interest payments with another party in exchange for part of the appreciation.

Interest which is computed only on the principle balance.

A measurement of land in Dubai, prepared by a registered land surveyor, showing the location of the land in Dubai with reference to known points in Dubai, its dimensions, and the location and dimensions of any buildings in Dubai.

Equity created by a Dubai purchaser performing work on a property being purchased in Dubai.

A document that gives evidence of an individual's ownership of a property in Dubai.

A policy, usually issued by a title insurance company in Dubai, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the Dubai property, and is often borne by the purchaser and/or seller in Dubai. Policies are also available to protect the lender's interests.

An examination of municipal records in Dubai to determine the legal ownership of the Dubai property. Usually is performed by a title company based in Dubai.

A Dubai mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time in Dubai. The lender sometimes has the option to call the loan due with 30 days notice at the end of seven or 10 years. Also called "Super Seven" or "Premier" mortgage.

The decision whether to make a loan to a potential home buyer in Dubai based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount.

Interest charged in excess of the legal rate established by law.

See Dubai adjustable rate mortgage.

A document signed by the borrower's financial institution in Dubai verifying the status and balance of his/her financial accounts.

A document signed by the borrower's employer verifying his/her position and salary.

Many mortgage firms in Dubai must borrow funds on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market in Dubai (or to Dubai investors). When the prime rate of interest in Dubai is higher on short term loans than on mortgage loans, the mortgage firm in Dubai has an economic loss which is offset by charging a warehouse fee.

Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner in Dubai, who then forwards the payments to the first lender in Dubai after taking the additional amount off the top.