Mortgage info
The mortgage consultant was always informative, stayed in touch and was very good. I chose the PA Mortgage Store because they were reviewed favorably.
-- Leslie
Philadelphia, PA
Email Newsletter
Sign up to receive articles, tips and other news from Pennsylvania Mortgage Store.
|
- APR - Annual percentage rate
- The full cost of credit including interest and loan fees expressed as a yearly rate. The APR provides consumers with a standard to compare the cost of different loans.
- closing costs
- Fees associated with the buying or selling of a home. Typically the buyer assumes closing costs associated with obtaining a loan while the seller will assume closing costs related to closing out their loan. If you're a buyer some closing costs may be negotiated with the seller.
- DTI - Debt To Income ratio
- Long-term debt divided by monthly gross income. Used by mortgage lenders to assess your ability to pay off debt based on your current income.
- escrow
- A legal arrangement where a thing (money, property, titles, deeds, etc.), is delivered to a third party agent to be held in trust until contractual arrangements are met.
- FHA loan
- A program from the Department of Housing and Urban Development (HUD) that allows first time homebuyers or people short on downpayment funds to secure a mortgage with as little as 3% down.
- FICO score
- The primary credit score used by lenders to assess a potential borrowers risk. FICO stands for Fair Isaac Company, the company that created the original scoring model.
- Good Faith Estimate
- A mortgage lender's estimate of the fees due at closing. Required by law within three days of applying for a loan. These mortgage fees, also called settlement costs, cover every expense associated with your home loan: inspections, title insurance, taxes and other charges.
- negative amortization
- A feature of interest only loans, negative amoritization occurs when the payments made do not cover the interest due. The remaining interest owed is added to the oustanding loan balance, making it larger than the original loan amount.
- points
- One-time cash payment made upfront or at settlement to reduce the interest rate on the loan. One point is equal to one percent of the mortgage amount.
- principal
- The amount still owed on a debt which has been partially paid, sometimes also called remaining principal or outstanding balance.
- Private Mortgage Insurance (PMI)
- Insurance required by lenders on loans with less than a 20% downpayment. Once you have paid down your mortgage by 20% your mortgage lender, under the Homeowners Protection Act of 1998, is required to cancel the PMI on most loans.
- rate lock
- A verbal or written guarantee of an interest rate and fees provided by a mortgage originator to a borrower.
- term
- A period of time.
|
