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Commonly Used Mortgage Terms | Balloon Mortgage& Payment | All Western Mortgage

A type of mortgage that allows the borrower to make lower monthly payments for a certain amount of time. After that period gets over, the borrower has to pay the remaining amount as lump-sum. The lump-sum payment on the balloon mortgage.

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Commonly Used Mortgage Terms | Balloon Mortgage& Payment | All Western Mortgage

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  1. All Western Mortgage Mortgage Glossary: Commonly Used Mortgage Terms

  2. If you are planning to take a mortgage loan, the application form’s cryptic vocabulary consisting of typical mortgage terminologycan make the process a little difficult for you. Therefore, here are some commonly used mortgage terms that you should be aware of:

  3. Adjustable Rate Mortgage: ARM is a type of home loan in which the interest rate changes periodically on the basis of the standard financial index.

  4. Annual Percentage Rate: An APR is the standardized way of estimating or calculating the cost of a mortgage. It includes interest, mortgage insurance and certain credit costs.

  5. Appraisal: A report estimating the value of a property. It is written by a qualified appraiser.

  6. Balloon Mortgage: A type of mortgage that allows the borrower to make lower monthly payments for a certain amount of time. After that period gets over, the borrower has to pay the remaining amount as lump-sum.

  7. Balloon Payment: The lump-sum payment on the balloon mortgage.

  8. Closing costs: Closing costs are expenses incurred by both the buyer and the seller for transferring the ownership of a home. It generally includes origination fee, attorney's fee, taxes, escrow payments, title insurance and sometimes discount points.

  9. Collateral: Property pledged as security to the mortgage.

  10. Down-payment: The portion of cost of the home that you pay upfront.

  11. Escrow: An account controlled by a neutral third party, which holds the documents and money involved in a real estate transfer. The funds remain in the escrow until all the conditions of the sale are fulfilled.

  12. Foreclosure: The legal procedure by which the lender can acquire the property if the homeowner defaults on mortgage payments.

  13. Good Faith Estimate: A GFE is the written estimate of closing costs. It is provided by the lender to the homeowner.

  14. Pre-payment penalty: A fee charged to borrowers who pay their loan early.

  15. Title Insurance: A legal document that guarantees the title of the property to the homeowner.

  16. These were some commonly used mortgage terms. To access the complete mortgage glossary, visit All Western Mortgage webpage, http://www.awmlending.com/mortgage-glossary.php. In case of any further questions, feel free to call us on 702-850-2790.

  17. Contact Us Address:8345 W Sunset Rd, Suite 380 Las Vegas, NV  89113 Telephone: 702-850-2790 Fax: 702-906-0153 Email: info@awmlending.com Web: www.awmlending.com All Western Mortgage - Serving Its Customers Since 1981.

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