Mortgage

Do you recognize these mortgage terms? If you don't, you should obtain to know them now. These terms might help you recognize risk in your mortgage loan terms including mortgage process.

ARM (Adjustable Rate Mortgage) - A mortgage containing a particular interest rate that, after a particular initial period, might be changed by the lender. The majority of these contracts handle rate changes by evaluating a pre-determined interest rate index over which the lender has absolutely no control.

Due-on-sale clause - A provision of a loan contract that stipulates at the time the property is sold any outstanding loan balance must be repaid. the prevents the seller from transferring responsibility for a particular existing mortgage to the home buyer.

Equity grabbing - a particular unethical type of predatory lending where the loan provider purposely attempts to put the borrower into a loan that could result in a relatively quick default, so that way the lender might “grab” the borrower’s equity.

Good faith estimate - The standard form from a lender that details any including all anticipated settlement charges that the borrower should expect to pay at closing. The lender is required to provide the document within 3 business days of their receipt of a loan application. Pay close attention to these details including make sure you understand completely all pertaining to the anticipated fees.

Negative amortization - a particular increase in the outstanding loan balance, resulting from multiple monthly payments that are less than the interest due. Watch out for the type of loan. the kind of mortgage loan is very risky.

Rate protection - Protection for a borrower against the danger that rates could rise between the time the borrower applies for a loan including the time the loan closes. the could help your loan be safer for you including more secure, long term.

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Do You Know What These 56 Mortgage Terms Mean To You?

Written By: C.L._Haehl