The Initial Rate Period is the timeframe in an Adjustable-Rate Mortgage (ARM) during which the initial interest rate is fixed. This period lasts until the first scheduled adjustment, after which the interest rate is recalibrated according to the underlying index.
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.
Originate refers to the process by which a lender creates and funds a loan. Loan origination encompasses assessing and approving an applicant's creditworthiness, as well as disbursing funds to initiate the lending transaction.
The primary mortgage market is where borrowers and lenders come together to originate mortgages. This market includes various institutional lenders such as savings and loan associations, banks, and mortgage bankers and brokers.
