List Headline Image
Updated by Fusion 360 on Nov 13, 2014
 REPORT
9 items   1 followers   0 votes   480 views

Must-Know Mortgage Terms

Mortgage companies use a vocabulary all their own. It can be hard to follow along with some of their lingo. Bring this list along as a cheat sheet when speaking about mortgages with the experts.

ARM Loan

An adjustable rate mortgage is a rate that is paid for a set year. It is often lower than other rates, but after the year is up, it goes up by a predetermined amount for the remainder of the mortgage.

2

APR

APR

This type of loan, annual percentage rate, is a rate that is paid yearly. It is a higher rate because it is all paid at once, and includes a few other factors that companies will go over with clients.

Closing Cost

The closing costs are the costs that originate from the mortgage companies and agencies. They can be loan origination fees, escrow payments, title insurance, attorney fees or other rates.

4

Escrow

Escrow

An Escrow is essentially a third party. During the mortgage process they are the person who holds the documents and other money. They also hold the money that is paid each month for the mortgage payments.

5

FRM

FRM

A fixed mortgage rate is the most common type of payment. It is a fixed number that stays constant throughout the life of the loan.

Loan to Value

This is the term that refers to the relationship between the value of the home and the loan. The percentage of the loan to the value of the home will determine if a private mortgage will need to be covered by the companies as well.

Private Mortgage Insurance

This policy protects the mortgage companies from loss when a home is financed with more than 80 percent of the home’s value. Once a homeowner has purchased 20 percent equity in their house, they can cancel their PMI.

Title Insurance

Title insurance protects both the buyer and the lender from any title issues or legal defects. This policy allows for the property owner to transfer titles.

9

Writer

Writer

Ciera Putnam is a finance and mortgage writer. Information provided by Castle & Cooke Mortgage (NMLS# 1251). She writes for Fusion 360, an advertising agency in Utah. Find her on Google +

  • Listly By

    Modern marketing is pure chaos. Consumers are revolting against stagnate companies and abandoning traditional media in droves. Only those who adapt will succeed. The revolution is in full-swing.
    Consumers are dictating how they want to do business and it’s not the way you’ve probably done business before. It might not even be the way you want to do business in the future. But, digging in your heels and refusing to adapt and change will make your brand irrelevant to the new digital consumer. You may survive, but only for a while.
    Today’s businesses and organizations are at a tipping point. Will you adapt to change and succeed?
    We’re here to help. We are Fusion 360. We are the Agency for the Digital Revolution.

  • Tagged With

  • Tools