U V W
Mortgage Terms
U
Underwriting: the process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower's credit history and a judgment of the property value.
Usury: interest charged in excess of the legal rate established by law.
V
VA: Department of Veterans Affairs: a federal agency which guarantees loans made to veterans; similar to mortgage insurance, a loan guarantee protects lenders against loss that may result from a borrower default.
Variable Rate Mortgage: see adjustable rate mortgage.
Verification of Employment (VOE): a document signed by the borrower’s employer verifying his/her position and salary.
W
Wraparound mortgage: 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.
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