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Underwater Mortgage |
| When a homeowner ends up owing more on their property than the current market value of said home. |
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Underwriting |
| Detailed process of evaluating a borrower's loan application to determine the risk involved for the lender. Underwriting usually involves an in-depth analysis of the borrower's credit history, as well as an examination of the value and quality of the subject property. |
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Underwriting Fee |
| A fee charged by some lenders to cover the cost of the lender's analysis of the risk associated with a loan. |
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Undivided Interest |
| An ownership right to use and occupy property that is shared among more than one owner. No single co-owner may have exclusive rights or possession to any part of the property. |
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United States Department of Housing and Urban Development (HUD) |
| A Cabinet department in the Executive branch of the United States federal government that has roots tracing back to 1965. The division was originally launched under the presidency of Lyndon Johnson. The current mission of the agency is to "... create strong, sustainable, inclusive communities and quality affordable homes for all" (Hud.gov) |
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Unsecured Loan |
| A loan that is not backed by collateral. |
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Upfront Mortgage Insurance Premium |
| FHA charges the borrower an Upfront Mortgage Insurance Premium (Upfront MIP) for most transactions to financially support the FHA program. This fee is a percentage of the principal loan amount and is due at closing. The full amount can be financed as part of the loan amount or paid in cash. |
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