Mortgage Glossary

 

A mortgage with a variable interest rate that may change at certain intervals during the life of the loan.
A report of the value of your home. Most lenders require an appraisal to find out how large a loan you can be given.
The time scheduled for you to receive your money from the lender.
Costs charged when you close your loan.
Most first mortgages have escrows or impounds that may be for expenses like real estate taxes or homeowners insurance. Escrows are created so the lender can collect money from you each month and put it in an escrow account to pay your real estate taxes and homeowners insurance when they come due.
An agency of the federal government created to provide insurance on mortgages.
The Federal Home Loan Mortgage Corporation. A company sponsored by the federal government and created to help provide funds for home lending.
A mortgage that has first priority on a home. This means that in the unlikely event of a foreclosure, the company that holds a first mortgage will be paid off first.
A mortgage with a stable and unchanging interest rate throughout the life of the loan.
A certificate ordered by the lender from a company providing flood determinations. Flood certs are required on loans so that the lender can determine if a property is in a location susceptible to flooding.
The Federal National Mortgage Association. A company sponsored by the federal government and created to help provide funds for home lending.
A mortgage larger than the current FNMA and FHLMC limit (2011 limit is $417,000).
A common term used by lenders to determine the maximum mortgage you will qualify for. It is the loan amount divided by the value of your home.
A loan that uses your home as collateral
A mortgage that has second priority on a home. This means that in the unlikely event of a foreclosure, the company that holds a second mortgage will be paid off after the first mortgage holder is completely paid off.