An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. The rate is initially fixed for a specific period, after which it resets periodically, typically annually, based on an index that reflects the cost to the lender of borrowing on the credit markets.
An Adjustable-Rate Mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. The rate initially remains fixed for a period before adjusting at preset intervals.
A Conventional loan is a type of mortgage that is not guaranteed or insured by any government agency. They typically require higher credit scores and a higher down payment than government-backed loans.
A deferred-interest mortgage is a type of home financing loan that offers the borrower an option to pay less than the interest due on its outstanding balance. Any shortfall in the interest payment is then added to the loan's principal, leading to negative amortization.
An Escalator Mortgage, commonly referred to as an Adjustable-Rate Mortgage (ARM), is a type of home loan where the interest rate fluctuates based on a specific financial index, causing periodic payment adjustments over the life of the loan.
Fannie Mae (FNMA) is a government-sponsored enterprise (GSE) that backs and increases liquidity in the United States residential mortgage market by buying and guaranteeing mortgage loans.
A fifteen-year mortgage is a fixed-rate, level-payment mortgage loan with a maturity of 15 years, often chosen for its interest savings and quicker equity buildup compared to longer-term loans.
A nominal fee charged by the Department of Veterans Affairs to those receiving a mortgage guaranteed by the VA, which helps to fund the VA loan program.
GI Loan, often referred to as VA Loan, is a U.S. Department of Veterans Affairs program that provides home loan benefits to eligible veterans, service members, and their families, helping them buy, build, repair, retain, or adapt a home for personal occupancy.
A graduated-payment mortgage is a home loan characterized by low initial monthly payments that gradually increase over time according to a predetermined schedule.
A home improvement loan, usually secured by a mortgage on the home, is used to pay for major remodeling, reconstruction, or additions to a residential property. It provides homeowners with the necessary funds to enhance and upgrade their living space.
Mortgage Insurance Premium (MIP) is a fee paid by a borrower to obtain mortgage insurance on a mortgage loan, which protects lenders against losses if the borrower defaults. This fee can be paid as a lump sum at the time of loan closing or as a periodic amount included in the monthly payments, or both.
A mortgage lien is an encumbrance on a property that is used to secure a loan. The holder of the lien has a claim to the property in case of loan default, making it a critical aspect of real estate financing.
Mortgage origination refers to the process by which a borrower applies for a new home loan, and a lender processes that loan. This process includes assessment, documentation, approval, and the issuance of the mortgage.
The principal amount owed on a mortgage at the time of its origination or closing.
A package mortgage is a type of mortgage arrangement where the principal amount loaned is increased by including both personalty (e.g., appliances) and realty (real estate) as collateral.
The Rural Housing Service (RHS) is a department within the U.S. Department of Agriculture that administers loans, loan guarantees, and grants to help provide housing in rural areas and small towns to those who need assistance. Many of the programs operated by the RHS previously fell under the Farmers Home Administration.
