Archive for March, 2009

Variable Rate loans mortgage terminology definition

Variable Rate: Also called an adjustable rate, this is an interest rate that changes. The changes in interest rates usually occur with fluctuation in the current market.

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Interest Only Loan loans mortgage terminology definition

Interest Only Loan: A mortgage loan that allows the borrower to pay only the interest on the mortgage for a set amount of time before they start paying towards the principal. People use this type of mortgage when they expect an increase in income in the f

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Variable Interest Rate loans mortgage terminology definition

Variable Interest Rate: This is the type of interest rate on a mortgage loan that usually starts out fixed, but can begin to increase and fluctuate with market trends after a set period of time, usually 3 -5 years.

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Interest loans mortgage terminology definition

Interest: The money paid to a lender for the use of their money. In the case of a mortgage, the interest is a percentage rate over a certain period of time paid to the mortgage company.

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Variable (v) loans mortgage terminology definition

Variable (v): The word variable is the same as a variable interest rate on your loan. The APR on your loan is your annual percentage rate. If it has the letter “V” next to it, then it means that your interest rate is subject to change in the future.

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Income loans mortgage terminology definition

Income: Any money that you receive in a given period of time. For the purposes of obtaining a mortgage, you should consider your steady monthly income when determining your affordable mortgage payment amounts. You may not want to include income such as ch

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Underwriter loans mortgage terminology definition

Underwriter: A person employed by a lending company who evaluates a borrower’s loan application and all of the paperwork involved to determine if the borrower can receive the loan or not.

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Hybrid Mortgage Loan loans mortgage terminology definition

Hybrid Mortgage Loan: A loan to purchase a home that combines an adjustable rate mortgage with a fixed rate mortgage. Most hybrid mortgages have a fixed interest rate for the first ten years after which time the interest rate becomes adjustable. This type

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Truth in Lending Act loans mortgage terminology definition

Truth in Lending Act: A government act that insures all lenders fully disclose the costs associated with the money being borrowed.

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HUD-1 Form loans mortgage terminology definition

HUD-1 Form: A list of the purchases and transactions involved when you buy a home through The Department of Housing and Urban Development and The Federal Housing Authority.

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