Glossary - V
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Mortgage Brokers Glossary - V
- Valid:
- Having legal force. This means that if a property title is valid then it is effective or binding by law.
- Valuable Consideration:
- An equivalent or compensation having value given for a thing purchased, as money, marriage, services, etc. It is the granting of some beneficial right, interest, or profit by one party in exchange for the performance of another.
- Valuation:
- The act or process of assessing value or price of a property through an appraisal.
- Variable Interest Mortgage:
- A mortgage product where the interest rate can change or vary during the loan term. The variance in the interest rate usually depends on a specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.
- Variable Interest Rate:
- Percentage paid by a borrower for the use of funds. This interest rate moves up or down periodically due to changes in other interest rates.
- Variable Rate Mortgage (VRM):
- The interest rate is usually compounded monthly and fluctuates with the prime rate at the chartered banks. In most, but not all cases, the VRM is fully open.
- Vendor:
- In real estate transactions it is the person selling the property.
- Vendor Take Back:
- In order to sell a property, the seller will provide all or some of the financing to ensure the transaction.
- Verification of Employment:
- The lender will sometimes contact an applicant's employer in order to verify information provided in a mortgage application or a job letter; your income structure, length of employment, position, and so on.
- Void:
- Something that is void has no validity or effect under the law meaning it is null. For example, a contract can be rendered void.
