Bona fide in good faith. Borrower (mortgagor) an individual who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan. Broker an individual who brings buyers and sellers together and assists in negotiating contracts for a client. Buy-down mortgage a mortgage loan with a below-market rate for a period of time. Buyer's market market conditions that favor buyers. With more sellers than buyers in the market, sellers may be forced to make substantial price concessions. C call option a provision of a note which allows the lender to require repayment of the loan in full before the end of the loan term. The option may be exercised due to breach of the terms of the loan or at the discretion of the lender. Caps (interest) consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage can change in an adjustment interval and/or over the life of the loan. For example, if your per-period cap is 1% and your current rate is 7%, then your newly adjusted rate must fall between 6% and 8% regardless of actual changes in the index.

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