Mortgage Loan Terms And Definitions

The Loan Estimate is not an approval or denial of a loan application, but shows a borrower the terms the lender expects to offer if the borrower decides to move forward with the loan. Loan to Value Ratio The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

The process for application is similar to other credit products and the terms of the loan are determined by a borrower’s credit score and credit profile. In some cases, co-borrowers may have a higher.

A cash-out refinance is a mortgage refinancing option in which the new mortgage is for a larger amount than the existing loan in order to convert home equity into cash. The most basic option in.

Loan terminology glossary . The terms and definitions that follow are meant to give simple, informal meaning for words and phrases you may see on our Web site that may not be familiar to you.

Definitions of Common Mortgage Terms Mortage Terms. One of the. schedule for a 15 year loan will include the amount borrowed, interest rate paid and term.

ADJUSTABLE rate mortgage (arm) – A loan that allows the lender to adjust the borrower’s interest rate and payments at specified times and within specified limits. Below-market starting interest rates are typical. AMORTIZED LOAN – A loan which is paid off in equal installments during its term.

Mortgage loan in which the interest rate remains the same for the life of the loan. fixed rate period The period of time in an Adjustable Rate Mortgage where the interest rate is fixed.

A wraparound mortgage is a type of junior loan which wraps or includes, the current note due on the property. The wraparound loan will consist of the balance of the original loan plus an amount to.

Mortgage Glossary of terms The good news is you actually don’t need a large down payment or great credit in order to purchase a home with competitive market terms. on conventional loans, no matter the down payment. Why You.

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A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Who Uses a Mortgage?.