Common Mortgage Terms

Memorize the most important mortgage terminology with this handy mortgage glossary. Common mortgage terminology to master 1. Adjustable-rate mortgage (ARM) On some home loans, the interest rate you pay is subject to change. If your mortgage rates are adjusted based on changing market conditions, you have an adjustable-rate mortgage.

A mortgage interest that are fixed throughout the entire term of the loan. 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.

Welcome to the mortgage terms glossary, featuring 47 frequently-used words and phrases you need to know as a home buyer or a homeowner.

The amount the borrower is obliged to pay each period, including interest, principal, and mortgage insurance, under the terms of the mortgage contract. paying less than the scheduled amount results in delinquency. On most mortgages, the scheduled payment is the fully amortizing payment throughout the life of the loan.

How A Mortgage Works How amortization works paying down a balance over time .. you’ll pay off a 30-year mortgage. Your monthly loan payments don’t change; the math simply works out the ratios of debt and principal payments each month until the total debt is eliminated.

Common equity holders and likely management as well. Prepayment risk is somewhat unique to U.S. mortgage loans because of their structure and terms. In other countries, such as Canada, mortgage.

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A formal or informal arrangement between a lender and a borrower where the lender agrees to offer special terms (such as a reduction in the rate or closing costs) for a future refinancing as an inducement for the borrower to enter into the original mortgage transaction.

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One of the common misconceptions is the belief that all loans. by looking at their original promissory note. Under no uncertain terms should you apply to assume your mortgage unless you have.