Looking for a home equity loan?  Compare home equity rates and loans to find the right one for you.  Use this simple online service to learn about current mortgage rates that can help finance your goals.  Get mortgage home equity quotes from a loan company that will work for you.  I can help!  Equity home loans provide you the flexibility you need.  Take control and find out what will work for you.  Contact me or use this site to help you navigate through the home equity mortgage and loan process.

What is a home equity credit line?

Home equity lines of credit require homeowners to use their home as collateral for the loan.  These lines of credit may provide you with large amounts of cash at comparatively low interest rates. Today, home equity credit lines have become a popular source of consumer credit.  A home equity credit line might be able to give you the extra cushion you need to get through a tight spot or a boost toward a dream vacation or a home improvement that you deserve.

Your creditworthiness and outstanding debts are the factors used to determine how much you can borrow for a home equity credit line.  In many cases, lenders will allow as much as 85% of the appraised value of a home, minus the amount you still owe on your first mortgage.  Access to this credit line is done through credit cards, checks or both.

Facts About Home Equity Credit Lines

• Often home equity credit lines provide you with certain tax advantages that are many times unavailable to most kinds of lines.  However, you should check with your tax advisor for exact details referring to your home equity credit line.

• There are two types of rates for home equity credit lines.  Fixed rates and variable rate are the two main types.  Variable rates offer low monthly payments at the start of the credit line, then over time rise to much higher rates.  Fixed rates are sometimes available.  These rates may initially be higher than the beginning portion of the variable rate plan.  However, fixed rates do provide constant stable monthly payments over the duration of the credit line.

• Many times there are minimum and maximum withdrawal requirements.

• Home equity credit line lenders must disclose information on any variable rates, annual percentage rate (APR), payment terms, and opening/use charges of an account.  This is a requirement of the Federal Truth in Lending Act that protects and informs borrowers.  Be sure to look into all your options before moving forward.

• Repayment terms need to be acknowledged.  It is important to find out the guidelines for paying back the home equity credit line.  Sometimes there are penalties, default consequences, and late fees that you should be aware of before taking on the line of credit.

• Fees and expenses are part of the acquisition process of a home credit line, such as application fees, title search, appraisal, points, and discounted interest rates.  Sometimes there are “continuing costs” that are paid throughout the life of the loan or credit line.  It is important to read the plan before signing.

Home Equity Credit Line – Interest Rate Terms

• Periodic Cap – limit on interest rate which change at different time intervals

• Lifetime Cap – limit on interest rate which change throughout the loan period

• Index – prime rate used by lenders to decide how much to raise or lower interest rates

• Margin – amount added to the index that establishes the interest charged

• Discounted Interest Rate – unusually low rate lasting for a short period at the start of the loan

• True Market Level – index plus margin

There are many banking institutions in the town of Scottsdale. You will to call around to choose the best one to meet your needs. The following is a list of banks and their phone numbers.

The Global Currency Corporation can help you with your foreign currency needs. The Corporation is located at 4166 North Scottsdale Road, 602-990-3363.
Global Currency Corporation
4166 N. Scottsdale Road, Scottsdale, AZ 85251-5953, Tel:(602) 990-3363/Fax:(602)
990-3373

Bank of America
TEL: (602) 257-0001

Bank of Arizona
TEL: (602) 951-9600

Bank One Arizona
TEL: (602) 248-0608

Bank One Express
TEL: (602) 949-0333

Biltmore Investors Bank - Pinnacle Peak
TEL: (602) 585-5222

First Interstate Bank of .Arizonan.A.
TEL: (602) 528-6000, TDD: 800-695-4984

First National Bank of Arizona
TEL: (602) 990-3151 / FAX: (602) 252-0256

Founders Bank of Arizona
TEL: (602) 998-8000

Great Western Bank
TEL: (602) 244-9085

Harris Trust Bank of Arizona
TEL: (602) 951-4900

M & I Thunderbird Bank
TEL: (602) 336-3950

National Bank of Arizona
TEL: (602) 998-7373

Northern Trust Bank of Arizona
TEL: (602) 468-2600

Norwest Bank of .Arizonan. A.
TEL: (602) 504-1234

Western Security Bank
TEL: (602) 947-9888

Credit Reports

Get a credit report today! Are you a first time home buyer interested in your credit standing Maybe you are curious about your personal finances Is a debt consolidation in your future Looking for a mortgage or loan Its important to take time and get your credit in order, before looking for a home loan. Every consumer should check his/her credit to make sure it is correct. Start with an online credit report. Learn how your credit report can help you get on track.

Facts About Pulling Credit Checks

As long as you are looking for a mortgage to purchase a home, a mortgage to refinance a home, a home equity loan, a line of credit or an auto loan will only count as one inquiry. These inquiries asking for your credit report need to be made within a 14-day period and will be shown as one inquiry. However, if you are looking for a personal loan or credit card, each inquiry is looked at as a separate inquiry.

Before Looking for a Home Loan Take Advantage of Credit Check

In many cases it is to your advantage to review your credit report/file, prior to looking for a home loan. Check your report/file for accuracy and completeness. You may find discrepancies which can be resolved, prior to locating a home and starting the loan process. Find out how to get your credit check and prevent future problems. Read more

Debit Consolidation

Attain home equity rates for debt consolidation now. Prior loans and a large home mortgage can take you over. Get on the right path for positive personal finance. Discover how your mortgage and other loans can be consolidated. Take the first step toward debt consolidation. Identify the right loan company for you. Personal finance doesnt have to be a headache. There are options. Online loan rates and a payment calculator can be your guide. Contact me to learn more or explore this site for additional information.

Options Available - Debt Consolidation

Gain control of your money today! Debit consolidation is one of the best ways to take charge of your personal finances. There are options out there. It is time to begin your search for debit consolidation loan.

Merging your loans, credit card bills, and large monthly mortgage payments can help many people. By focusing your resources into reducing your debt can get you on the right path. Having more money in your pocket could be one of the benefits from debit consolidation.

Options are out there. You need to explore what loan will work for you. You might own a home and using the equity could be the right answer. Or maybe you need to take out one loan to reduce the number of monthly bills being paid. It is time begin your search. Use this site to get you started today.

It is time to identify the best loan company for you. There are many loan options out there. It is important to ask questions. Discover online loan rates and use payment calculators. These are great tools and resources to utilize during your quest for a debit consolidation loan. Knowing what you want to achieve will help guide the lender in selecting the best debit consolidation loan.

In many peoples mind, debit consolidation combines all the financial problems and rolls them into one manageable payment. It could be the right choice for you.

Truth in Lending Act Protects You

The Truth in Lending Act was created in 1968. Congress passed the act to protect United States consumers. The federal act is part of the Consumer Protection Act. The Truth in Lending Act (TILA) created laws that protect consumers, who are involved in credit transactions. These laws require lenders to disclose (reveal) clearly to the consumer the terms and costs of the lending agreement. Furthermore, TILA requires lenders to provide in writing, an accurate cost of credit. This includes the finance charges added to the loan, along with the annual percentage rate (APR) charge.

The TILA allows the consumer to take control of their finances. Consumers are able to compare loan schedules, rates, and finance charges. With this information at a consumers fingertips, it is not difficult to make the right decision. When consumers have the knowledge to understand their options, it is easier to move forward in a transaction.

When refinancing a home or taking out equity, consumers have rescission rights. This means under the TILA, a consumer has the right to rescind (back out/stop) a consumer credit transaction involving a non-purchase-money transaction on a consumers primary residence. A consumer many rescind within three business days of the transaction.

Knowing your consumer rights and understanding TILA are two ways you can benefit. Whenever you are involved in a credit transaction make sure you ask questions. The more you know, the more confident you will feel about the process. The TILA was created to help protect you the consumer.

Relief Through Debt Consolidation

When you get yourself off track it is difficult to get back on. Debt consolidation could be the right answer for you. Life can throw you lemons. There are many reasons people find themselves in financial trouble. By consolidating debt you might be able to get back on the path to success.

Debt consolidation could provide:

Opportunity to clean up credit and reorganize finances

Chance to combine all bills into one low, manageable monthly payment

Relief from consistent harassing bill collector phone calls and mail

Worry free living without thinking of how each penny is being spent

Extra cash needed to avoid bankruptcy, late payments, back child support

Just because your life and credit hasnt been the best, that doesnt mean you should miss out on all the options available to everyone else. Get relief today by finding out if debt consolidation works best for you.

Arizona Mortgage

Locating a mortgage, debt consolidation or a loan Visit the mortgage site! Use mortgage refinancing to cash out for todays needs. Uncover more information on debt consolidation and mortgages. Discover todays interest rates and a payment calculator to finance your next move.

Is it time for you to refinance for the future Learn about current mortgage rates to help finance your goals. Get mortgage quotes from a loan company that will work for you. Help is available.

Looking for a way to move up Are you confused with terms such as interest rates, home equity, reverse mortgage, mortgage refinancing, mortgage rates, and fixed mortgage Dont be. Take control and find out what will work for you. Contact me directly or use this site to help you navigate through the mortgage and loan process.

Home Loan Process Three Key Points: Lenders, Property, Financial Situation

Be confident when applying for a home loan. Home mortgage approval usually hinges on three significant points. These three points are the lender, the property, and the financial situation of the applicant. Knowing what will be examined by loan officers can give you insight into the application process of a home mortgage.

Lenders

There are two groups of lenders. It can be beneficial to have an understanding of these two groups when applying for a home loan. Both the conventional lender and the portfolio lender evaluate loan applications.

A conventional lender provides loans with the intent of selling them at a later date. These loans must meet certain risk standards that predict the likelihood of a loan being repaid. Many times loans must meet the conservative policies of underwriters (the person evaluating loan applications). The term saleable loans refers to loans that a conventional lender issue. Fannie Mae and Freddie Mac are two major investors that buy saleable loans.

Portfolio lenders provide loans with the intent of holding onto a majority of the loans. Since portfolio lenders plan on keeping the loans, these lenders can be more flexible. Underwriters evaluate loans individually and adhere to the standards that the portfolio lender has established. Many times exceptions can be made, when deciding on whether a loan will be issued. Portfolio lenders usually use more flexible income-to-debt ratios compared to conventional lenders.

Property

The second point is the property or collateral. All loan applications require an appraisal of the property. A property appraisal is done to protect both the buyer and the lender. Since the property serves as collateral in trade for the money loaned, it is crucial that it is worth the purchase price.

A property appraiser inspects and compares the property to others in the neighborhood. Once the inspection is complete the appraiser determines the propertys value. If a home appraises for less than its price, the buyer will have to make a decision. The lender may require the buyer to make a larger down payment. A down payment is a specified percentage of a homes value paid at closing. Most often a down payment is 5%, 10%, 20% or 25% of the house price. This additional money, combined with the down payment will increase the equity of property. Another option is to ask the seller to reduce the sales price to make up for the difference in the current sales price and the appraised price of the property.

Financial Situation

The financial situation of the applicant (buyer) is probably the most important point in the loan application process. When applying for a home mortgage, the history of finances of both the past and present are key indicators as to how a new obligation will be handled. All lenders make a judgment when deciding to grant a loan.

Underwriters take into account three factors: down payment, ability to repay the loan, and credit-worthiness. The down payment is evaluated by the underwriter. This is done by a review of bank accounts. Last minute funds added to the account are also evaluated.

The ability to repay the loan or capacity is documented by the underwriter through a comparison of current income and debts and future earning potential. There needs to be enough money to support a mortgage house payment in addition to existing and future expenses. Usually the new monthly mortgage payment cannot be more than 28% of the buyers total monthly income and all of the buyers monthly debt cannot total more than 33% to 36% of the month income. However, exceptions can be made if the buyer has good credit history. Most lenders ask buyers to provide a current pay stub and a W2 earnings form or if self-employed, two years of personal and business tax returns. Credit worthiness is the third factor. It is essential that buyers notify lenders of any changes during the loan process. For example: change of jobs, reduction in salary, change in marital status, large purchases (cars, boats, etc.). These changes could cause delays in the loan funding, if they are not revealed in advance.

Underwriters look into debt repayment history by running a credit check. Some buyers must provide a letter explaining why credit cards, car loans or taxes were late, in order to qualify for a mortgage. If first time home buyers dont have enough credit history, underwriters look for other payment histories such as utility bills. There are several tools that help lenders decide whether or not to issue a loan. These tools include automated credit or risk scores. In some cases, these scores have taken the place of human decision making. Thus, it is possible for one lender to decline a loan and another to accept. Lenders can look at the same loan and view the same credit risk differently. It is important to keep searching, even if you have been denied. There might be another lender that could see things differently.

Tip: It is often a good idea to review your credit report for accuracy and completeness before you apply for a home loan.

When you have an understanding of the process of securing a home loan, you will be better prepared to provide your lender with the necessary information and documentation needed to acquire a mortgage. Having the knowledge of the steps needed to obtain home loan approval will allow you to ask the right questions. Being an informed buyer will get you into the exact home for your goals.

Know Your Options When Financing or Refinancing

There are some basic terms that you need to know when it comes time to either finance (secure a loan) or refinance a property. A fixed rate mortgage (FRM) will provide steady monthly payments over the length of the mortgage/loan. An adjustable rate mortgage (ARM) has an initial fixed rate, which is lower than a FRM, but then is followed by adjustment intervals, based on index. Having knowledge of these two financing options will allow you to make the right decision.

However, some buyers have found that a hybrid of the two mortgage rates is the best choice. These buyers represent the average homebuyer in Arizona, who lives in their home less than five years. This option is a blend of the ARM and the FRM. It is a 5/1 ARM, which is a fixed rate for five years and then turns into an adjustable rate. This hybrid works well for those, who want to live in the property for less than five years.

Dont be tricked. There are financing options that offer low interest rates with a pay option ARM which can result in owing more in the long run, after paying for the low interest period. Make sure you look at all your choices before making a final decision.

Learn more about your options. It is a simple and easy online service. Find out what loan meets your needs and offers you the best possible terms.

Still Shop and Compare Home Mortgages With Credit Problems

Many individuals believe that once they have poor credit, they will never be able to negotiate a good financial transaction. They also feel that the only way they will receive a home loan is if they pay high lending costs.

Dont assume that minor credit setbacks or a personal crisis, such as an illness or loss of income, will reduce your chances of a lender working with you. There are home mortgages out there that can benefit you.

In some cases, lenders may require you to explain your credit problems before they issue you a loan. Find out how your past credit history affects the current quoted price of the loan and see what steps are needed to take to get a better price. Take time to shop and compare. Dont let one lenders denial determine you future. Look around.

Terms: Home Mortgages

Adjustable-rate loans sometimes referred to as variable-rate loans, these loans offer a lower initial interest rate compared to fixed-rate loans, interest rates change over the life of the loan with established maximum and minimum rates, generally when interest rates fall then monthly payments will also be reduced.

Annual percentage rate (APR) cost of credit shown as a yearly rate, the rate includes the interest rate, points, broker fees, and other charges paid by the borrower.

Conventional loan mortgage loans other than those insured or guaranteed by a government agency.

Escrow holding of money or documents by a neutral third party prior to closing.

Looking for a mortgage payment calculator Access to a mortgage loan calculator, online mortgage rates, payment calculators, and interest rates can be found here. Use the mortgage and loans tools as a guide to navigate you through your mortgage and loan options. Utilize helpful mortgage tools for debt consolidation, loans, refinancing, and mortgage loans. Loans and mortgage rates available online! Also, find online loan applications. Bookmark this site to assist you in tracking down the right mortgage for you. Visit my home mortgage site today!

Mortgage
Calculators
Current Interest Rates
Mortgage Glossary

Searching for the right mortgage or home loan Find mortgage rates and a home mortgage perfect for you. Mortgages online can be easy. Access mortgage quotes, interest rates, and home loans. What are the best online loan rates Get your personal finance quote on a home mortgage today. It is a fast and simple online service. Move forward on your real estate loans by finding mortgage rates. Mortgage approval gives you the edge. A real estate mortgage lender can get you on the way to locating the right property. Interest rates and online loan applications are available. Check it out!

Early Mortgage Pre-Approval Buyers Advantage

Getting approved for a mortgage early on can save you money. Discover why those who know their buying power, before starting the home search, are in the drivers seat throughout the process.

Here are five reasons why you should get your mortgage pre-approved, before you begin your hunt for the right home.

1. Having the peace of mind of knowing that the money is ready and available when you locate the perfect home.

2. Knowing you wont lose your earnest money deposit, after a due diligence period, because you werent able to secure a mortgage.

3. Eliminate last minute delays that can occur, when securing a mortgage after locating a home, which can be costly and frustrating.

4. Available options such as closing your loan early and locking in an interest rate, both of which could save you money and provide leverage when negotiating with the seller.

5. Allowing you to focus on home shopping - comparing features/amenities when selecting a suitable property to meet your needs.

Take the right first step in buying your new home. Begin today by getting fully approved for a mortgage. It is a simple and easy process. House hunting should be an exciting time to plan for the future without worrying about qualifying for the loan. Find out how you can get fully approved for a home mortgage now.

Shop for Best Loan

When looking for a home loan, it is important to remember you are in the drivers seat. You are under no obligation to accept the first loan offer. Take advantage of the situation and locate another lender and compare offers. If you receive a better offer from another lender, you have the right to negotiate a better deal, if one is possible.

There are mortgages available for everyone from perfect credit to not-so-perfect credit. Take some time before house hunting to identify the loan that works best for you. This is a simple way to find a lender and view rate comparisons. Identify the perfect loan that fits your needs with the best terms possible. Take control and find out today what is out there for you.

Shopping, comparing, and negotiating can save you money. Many people have found that using a mortgage broker is advantageous. Mortgage brokers arrange lending transactions. They do not lend money directly. Instead, they match you up with a lender. Mortgage brokers have access to a variety of lenders. You can benefit from this access. With a wide selection of loan products and terms, mortgage brokers can offer you a greater choice as a one stop shop for loans. However, it is important to note that they are not obligated to find the best deal for you unless you have contracted with you to act as your agent.

Guidelines for Comparing Home Loans

It is important to shop around for the best home loan. In order to get the perfect loan, you must compare. Begin asking potential lenders and mortgage brokers the same questions. Then, you will have common facts to help you make a valid decision as to which loan offers you the most advantages.

Use the following information to start your comparison home loan shopping today:

Get a rate quote Find out what the current mortgage interest rates, discover if the quote is the lowest for that particular day or the week.

Learn the rate Discover if the rate offered is fixed or adjustable, remember adjustable rates reflect the interest rate when rates go up, general loan payments do too.

Find out the payment When an adjustable rate is used, find out how much of a variation will be reflected in the payment and whether the payment will drop if the interest rate falls.

Obtain APR Get a quote on the APR (annual percentage rate) which includes the interest rate, points, broker fees, and other charges that are part of the loan.

Get an estimate of points Acquire a dollar amount reflecting the points that you will pay. Points are fees paid to either the lender or mortgage broker for issuing the loan and are usually hinged to the interest rate. In most cases, the more points you pay, the lower the interest rate.

Uncover all fee amounts Whenever you go through the process of securing a home loan, there are fees that are attached. Fees such as: loan obligation/underwriting fees, broker fees, transaction fees, settlement fees, application fees, appraisal fees, and closing costs. Find out when fees are due. Some fees are paid when you apply for the loan and others are due at closing. Many times borrowers can roll these fees into the total loan amount. However, this will cause an increase in the loan amount and total cost of the loan.

Ask questions Get a hold of the loan document and be sure to ask questions. If you do not understand a fee or terms, ask the lender or broker to explain.

Find out if PMI is needed Many lenders insist on 20% of the homes purchase price as a down payment. However, there are lenders who do not. These lenders ask for less than 20%, but usually require the home buyer to purchase private mortgage insurance (PMI). PMI gives the lender protection, in case the borrower fails to make the monthly mortgage payment. Obtain information on how long you will have to carry a PMI, if you are required to have it for your loan.

Verify down payment and monthly payments Figure out how much you will need for a down payment and how much monthly payments will be if you that particular loan. See if there are any special programs that could be a benefit to you.

There is no harm in asking lenders or brokers if they can offer better terms, even if they have given you an offer. Sometimes the original offer quoted can be improved, if you ask.

Tip: When you are satisfied with the terms of a loan, it could be to your advantage to obtain a written lock-in from the lender or broker. This could protect you from any rate increases during the loan process. However, if rates do drop you could be bound to a higher rate. A lock-in should include the agreed upon rate, points being paid, and duration of validity of the lock-in.

Home Refinance

Refinance and reduce stress. Reorganize your personal finances mortgage, loans, and a second mortgage. Refinancing could work for you. Learn more about mortgage rates and steps to refinancing. Get a lender, who works for you today. Consolidate your home mortgage and loans to move forward. Find helpful mortgage tools - a payment calculator, interest rates and a mortgage loan calculator. Visit the home mortgage site and find out if refinancing is right for you!

Mortgage Refinancing Benefits

Refinancing is one way for you to get where you want to go. There are many reasons homeowners choose to refinance their mortgage. Whether the reason is to gather extra money or reduce a mortgage payment or pay off credit cards, refinancing could work for you. Find out how to refinance today!

Credit card bills keep rolling in each month. Growing high interest payments never seem to end. Exorbitant payments keep mounting. It might be the right time to gain control and begin putting money back into your pocket. By refinancing, you could use the extra money to pay off credit cards. Or use the additional money to help consolidate the bills into one single payment per month. Is it time for you to reconsolidate your personal finances and get on the road to recovery

Many homeowners have discovered that they have accumulated equity in their home. This additional cash allows homeowners an opportunity to turn dreams into reality. It could be time to take that once in the lifetime trip. Your child might be ready to head off to college and youd like to contribute to his/hers tuition. Your home could be in desperate need of repairs and a remodel would be the perfect solution. It might be time to climb into that car or boat that you have always wished for. Refinancing could work for you. Put more money into your pocket today. Find out how!

Taking advantage of lower interest rates can allow homeowners a chance to reduce their monthly mortgage payments. Some homeowners decide to switch from an adjustable mortgage to a fixed mortgage. Knowing your personal finance options is important.

Tools Support Financing Choices

There are tools available to you today. Use a payment calculator to calculate your mortgage loan. Discover the current interest rates. Utilize all the tools and resources to land you the right mortgage refinancing. Get the best lender to provide the right loan for your future. Use this website to locate the best rates to refinance your home loan.

Understanding The Truth in Lending Act

the federal Truth in Lending Act (TILA) was created in Congress in 1968. The act was part of the Consumer Protection Act. The law was passed so that consumers would be protected in credit transactions. Lenders are required to disclose clearly to the consumer the terms and costs of lending agreements. TILA also requires that lenders provide in writing the accurate cost of credit, including finance charges added to the loan, and the annual percentage rate charge. This disclosure allows the consumer to compare different loan schedules, rates, and finance charges.

If an institution violates TILA, action may be brought forth in any Untied States district court or any other competent court. Action needs to be done one year from the date on which the violation took place. However, the limitation does not apply when TILA violations are declared as a defense or counterclaim, except as otherwise provided by state law.

Consumers who refinance their homes or take out home equity loans have rescission rights. Meaning, under TILA, a consumer may rescind within three business days from a consumer credit transaction involving a non-purchase-money transaction in the consumer’s primary residence.

As a consumer, you need to protect yourself and understand the TILA disclosure. If you have questions make sure to ask. The more you know as a consumer, the more protected you will be.

A

adjustable-rate mortgage (ARM)
A mortgage whose interest rate changes periodically based on the changes in a specified index. View a list of common indices.
adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
adjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
amortization
The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.
amortization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.
annual percentage rate (APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).
application
A form, commonly referred to as a 1003 form, used to apply for a mortgage and to provide information regarding a prospective mortgagor and the proposed security.
appraisal
A written analysis of the estimated value of a property prepared by a qualified appraiser.
appraiser
A person qualified by education, training, and experience to estimate the value of real property and personal property.
appreciation
An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.
asset
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
assignment
The transfer of a mortgage from one person to another.
assumable mortgage
A mortgage that can be taken over (”assumed”) by the buyer when a home is sold.
assumption
The transfer of the seller’s existing mortgage to the buyer.
assumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.
assumption fee
The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

B

balance sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.
balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.
balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.
bankrupt
A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.
bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.
basis point
A basis point is 1/100th of a percentage point. For example, a fee calculated as 50 basis points of a loan amount of $100,000 would be 0.50% or $500.
before-tax income
Income before taxes are deducted.
beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust.
binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.
biweekly payment mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of the st andard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a st andard 30-year fixed-rate mortgage, and they are usually drafted from the borrower’s bank account. The result for the borrower is a substantial savings in interest by reducing the principle by one full payment year.
blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.
bond
An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.
breach
A violation of any legal obligation.
bridge loan
A form of second trust that is collateralized by the borrower’s present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as “swing loan.” L&G does not make bridge loans at this time.
broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.
buydown mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower’s monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.

C

call option
A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason.
cap
A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or mortgage payments may increase or decrease.
capital improvement
Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.
cash-out refinance
A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outst anding subordinate mortgage liens. In other words, a refinance transaction in which the borrower receives additional cash that can be used for any purpose.
Certificate of Eligibility
A document issued by the federal government certifying a veteran’s eligibility for a Department of Veterans Affairs (VA) mortgage.
Certificate of Reasonable Value (CRV)
A document issued by the Department of Veterans Affairs (VA) that establishes the maximum value and loan amount for a VA mortgage.
certificate of title
A statement provided by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.
chain of title
The history of all of the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent.
change frequency
The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).
clear title
A title that is free of liens or legal questions as to ownership of the property.
closing
A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called “settlement.”
closing cost item
A fee or amount that a home buyer must pay at closing for a single service, tax, or product. Closing costs are made up of individual closing cost items such as origination fees and attorney’s fees. Many closing cost items are included as numbered items on the HUD-1 statement. Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney’s fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey. Closing costs percentage will vary according to the area of the country.
closing statement
Also referred to as the HUD-1. The final statement of costs incurred to close on a loan or to purchase a home.
cloud on title
Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by a quitclaim deed, release, or court action.
collateral
An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.
collection
The efforts used to bring a delinquent mortgage current and to file the necessary notices to proceed with foreclosure when necessary.
combination loan
With this type of loan, you receive a first mortgage for 80 percent of the loan amount, and a second mortgage at the same time for the remainder of the balance. If avoiding PMI (mortgage insurance) is important to you, consider combination loans–known as 80/10/10 loans or 80/20’s .
combined loan-to-value (CLTV)
The relationship between the unpaid principal balances of all the mortgages on a property (first and second usually) and the property’s appraised value (or sales price, if it is lower.)
co-maker
A person who signs a promissory note along with the borrower. A co-maker’s signature guarantees that the loan will be repaid, because the borrower and the co-maker are equally responsible for the repayment. See endorser.
commission
The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is generally a percentage of the price of the property or loan.
commitment letter
A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. Also known as a “loan commitment.”
common areas
Those portions of a building, l and, and amenities owned (or managed) by a planned unit development (PUD) or condominium project’s homeowners’ association (or a cooperative project’s cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
Community Home Improvement Mortgage Loan
An alternative financing option that allows low- and moderate-income home buyers to obtain 95 percent financing for the purchase and improvement of a home in need of modest repairs. The repair work can account for as much as 30 percent of the appraised value.
community property
In some western and southwestern states, a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
comparables
An abbreviation for “comparable properties”; used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration; they have reasonably the same size, location , and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property.
condominium
A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.
condominium conversion
Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.
conforming loan
The current conforming loan limit is $322,700 and below. Conforming loan limits change annually.
construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
consumer reporting agency (or bureau)
An organization that prepares reports that are used by lenders to determine a potential borrower’s credit history. The agency obtains data for these reports from a credit repository as well as from other sources.
contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
contract
An oral or written agreement to do or not to do a certain thing.
conventional mortgage
A mortgage that is not insured or guaranteed by the federal government.
convertibility clause
A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a fixed-rate mortgage at specified timeframes after loan origination.
convertible ARM
An adjustable-rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified conditions.
cooperative (co-op)
A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.
corporate relocation
Arrangements under which an employer moves an employee to another area as part of the employer’s normal course of business or under which it transfers a substantial part or all of its operations and employees to another area because it is relocating its headquarters or exp anding its office capacity.
cost of funds index (COFI)
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It represents the weighted-average cost of savings, borrowings, and advances of the 11th District members of the Federal Home Loan Bank of San Francisco.
covenant
A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in foreclosure.
credit
An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
credit history
A record of an individual’s open and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner.
credit report
A report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness.
credit repository
An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

D

debt
An amount owed to another.
deed
The legal document conveying title to a property.
deed-in-lieu
A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure.
deed of trust
The document used in some states instead of a mortgage; title is conveyed to a trustee.
default
Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.
delinquency
Failure to make mortgage payments when mortgage payments are due.
deposit
A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan.
depreciation
A decline in the value of property; the opposite of appreciation.
down payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
due-on-sale provision
A provision in a mortgage that allows the lender to dem and repayment in full if the borrower sells the property that serves as security for the mortgage.

E

earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.
easement
A right of way giving persons other than the owner access to or over a property.
effective age
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
effective gross income
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
eighty-ten-ten loan
See “combination loan”.
encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
endorser
A person who signs ownership interest over to another party. Contrast with co-maker.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
equity
A homeowner’s financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.
escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.
escrow account
The account in which a mortgage servicer holds the borrower’s escrow payments prior to paying property expenses.
escrow analysis
The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.
escrow collections
Funds collected by the servicer and set aside in an escrow account to pay the borrower’s property taxes, mortgage insurance, and hazard insurance.
escrow disbursements
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
escrow payment
The portion of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Known as “impounds” or “reserves” in some states.
estate
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
eviction
The lawful expulsion of an occupant from real property.
examination of title
The report on the title of a property from the public records or an abstract of the title.

F

Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one’s credit record.
fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
Fannie Mae
A congressionally chartered, shareholder-owned company that is the nation’s largest supplier of home mortgage funds.
Fannie Mae’s Community Home Buyer’s Program
An income-based community lending model, under which mortgage insurers and Fannie Mae offer flexible underwriting guidelines to increase a low- or moderate-income family’s buying power and to decrease the total amount of cash needed to purchase a home. Borrowers who participate in this model are required to attend pre-purchase home-buyer education sessions.
Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets st andards for construction and underwriting but does not lend money or plan or construct housing.
fee simple
The greatest possible interest a person can have in real estate.
FHA mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.
finder’s fee
A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower.
first adjustment
When you can expect the first rate adjustment in your ARM loan.
first mortgage
A mortgage that is the primary lien against a property.
fixed-rate mortgage (FRM)
A mortgage in which the interest rate does not change during the entire term of the loan.
fixed second mortgage
See home equity loan.
flood insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
foreclosure
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
fully amortized ARM
An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

G

good faith estimate
An estimate of charges which a borrower is likely to incur in connection with a settlement.

H

hazard insurance
Insurance protecting against loss to real estate caused by fire, some natural causes, v andalism, etc., depending upon the terms of the policy.
home equity line of credit
a credit line that is secured by a second deed of trust on a house. Equity lines of credit are revolving accounts that work like a credit card, which can be paid down or charged up for the term of the loan. The minimum payment due each month is interest only.
home equity loan
a loan secured by a second deed of trust on a house, typically used as a home improvement loan.
housing ratio
The ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio.
HUD
The U.S. Department of Housing and Urban Development.
index
A published interest rate to which the interest rate on an Adjustable Rate Mortgage (ARM) is tied. Some commonly used indices include the 1 Year Treasury Bill, 6 Month LIBOR, and the 11th District Cost of Funds (COFI).
jumbo mortgage
The current loan limit for a conforming loan is $322,700. Loan amounts of $322,701 and above are considered non-conforming or jumbo mortgages and are usually subject to higher pricing.

L

lien
An encumbrance against property for money due, either voluntary or involuntary.
lender
The bank, mortgage company, or mortgage broker offering the loan.
lifetime cap
A provision of an ARM that limits the highest rate that can occur over the life of the loan.
loan to value ratio (LTV)
The ratio of the amount of your loan to the appraised value. The LTV will affect programs available to the borrower and generally, the lower the LTV the more favorable the terms of the programs offered by lenders.
lock period
The amount of time that a lender will guarantee a loan’s interest rate. Once you’ve locked in the interest rate on a loan, the lender will guarantee that rate for a certain period of time, usually for 30, 45 or 60 days.
lock-in
A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.

M

margin
The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period. A representative margin would be 2.75%.
mortgage
A legal document that pledges a property to the lender as security for payment of a debt
mortgage disability insurance
A disability insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specified period of time.
mortgage insurance (MI)
Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default. Usually required for loans with an LTV of 80.01% or higher.
mortgagee
The person or company who receives the mortgage as a pledge for repayment of the loan. The mortgage lender.
mortgagor
The mortgage borrower who gives the mortgage as a pledge to repay.
no income verification
See “stated income”.

N

non-conforming loan
Also called a jumbo loan. Conventional home mortgages not eligible for sale and delivery to either Fannie Mae (FNMA) or Freddie Mac (FHLMC) because of various reasons, including loan amount, loan characteristics or underwriting guidelines. Non-conforming loans usually incur a rate and origination fee premium. The current non-conforming loan limit is $252,701 and above.
note
A written agreement containing a promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on dem and.

O

origination fee
A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
owner financing
A property purchase transaction in which the property seller provides all or part of the financing.
P

periodic cap
The maximum rate increase for a specific period for a specific loan (ARM) only.
PITI
Principal, interest, taxes and insurance–the components of a monthly mortgage payment.
Planned Unit Developments (PUD)
A subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels.
points
Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan.
prepaids
Those expenses of property which are paid in advance of their due date and will usually be prorated upon sale, such as taxes, insurance, rent, etc.
prepayment penalty
A charge imposed by a mortgage lender on a borrower who wants to pay off part or all of a mortgage loan in advance of schedule.
principal
Amount of debt, not including interest. The face value of a note or mortgage.
private mortgage insurance (PMI)
Insurance provided by nongovernment insurers that protects lenders against loss if a borrower defaults. Fannie Mae generally requires private mortgage insurance for loans with loan-to-value (LTV) percentages greater than 80%.

Q

qualifying ratios
The ratio of your fixed monthly expenses to your gross monthly income, used to determine how much you can afford to borrow. The fixed monthly expenses would include PITI along with other obligations such as student loans, car loans, or credit card payments.

R

rate
The annual rate of interest on a loan, expressed as a percentage of 100.
rate cap
A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.
rate lock-in
A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
rebate
Compensation received from a wholesale lender which can be used to cover closing costs or as a refund to the borrower. Loans with rebates often carry higher interest rates than loans with “points” (see above).
refinancing
The process of paying off one loan with the proceeds from a new loan using the same property as security.
residential mortgage credit report (RMCR)
A report requested by your lender that utilizes information from at least two of the three national credit bureaus and information provided on your loan application.

S

seller carry back
An agreement in which the owner of a property provides financing, often in combination with an assumed mortgage.
stated/documented income
Some loan products require only that applicants “state” the source of their income without providing supporting documentation such as tax returns.
survey
A print showing the measurements of the boundaries of a parcel of l and, together with the location of all improvements on the land and sometimes its area and topography.

T

tenants-in-common
An undivided interest in property taken by two or more persons. The interest need not be equal. Upon death of one or more persons, there is no right of survivorship.
term
The period of time which covers the life of the loan. For example, a 30 year fixed loan has a term of 30 years.
title
The evidence one has of right to possession of land.
title insurance
Insurance against loss resulting from defects of title to a specifically described parcel of real property.
title search
An investigation into the history of ownership of a property to check for liens, unpaid claims, restrictions or problems, to prove that the seller can transfer free and clear ownership.
total debt ratio
Monthly debt and housing payments divided by gross monthly income. Also known as Obligations-to-Income Ratio or Back-End Ratio.
Truth-in-Lending Act
A federal law requiring a disclosure of credit terms using a st andard format. This is intended to facilitate comparisons between the lending terms of different financial institutions.

V

Veterans Administration (VA)
A government agency guaranteeing mortgage loans with no down payment to qualified veterans.