Mortgage Glossary
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Mortgage Glossary
If you want best mortgage deals, you first need to learn the basic terminology. We will add more definitions to the list as time permits. Remember…the more you learn the better chance you have in negotiating cheap mortgages.
Adjustable Rate Loans—This is the type of interest loan that fluctuates
over a period of time. It should have a min and max rate set.
Fixed Rate Loans— Payments and Interest stays the same thought out the loan.
This type of loan usually comes with 30 years term.
Conventional Loans—Loans that are not guarantee by FHA. As opposed to PMI
loans (FHA Loans).
Escrow—Type of account used during the loan process to hold money or documents,
can also be used for holding reserves such as insurance and taxes.
Loan Origination Fees—These type of fees are usually charged by the lender to start
the loan process. Please not that you can and should negotiate these fees.
Overages—When the broker keeps the different between the actual loan amount
And the amount given to the customer. Basically the broker could have gave you a better
rate but kept the difference for himself.
Points—These are the fees based on the total amount of the mortgage. Each point
equates to 1 percent. Most loans will allow you to add the points fees to the total
balance of the home loan.
Private Mortgage Insurance—This type of insurance will protect the lender against
the borrower defaulting on the loan. Most of the time it’s referred as PMI insurance
We try to explain the terminology in English so you can have a better feel for the
Language used. Please do other research in order to get cheap mortgages online.
We state this in pretty much every post. Do your homework and prepare for a battle
The lenders and mortgage brokers are not on your side, they will try and get every
penny possible. If you haven’t noticed I’m not really fond of them.
Mortgage Glossary
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