|Adjustable-Rate Mortgage (ARM)||
|Annual Percentage Rate (APR)||
The annual cost of a mortgage loan, stated as a percentage of the loan amount. It
A professional opinion of the market value of a property.
An item of value that you own.
A computer-based method that lenders use to process loan applications and to recommend whether to approve the loan (Tied to Fannie Mae and Freddie Mac).
Fees and expenses paid by you and the seller for the purchase, sale, or financing of the property.
A document required by the Regulating Governing Bodies that itemizes all charges relating to loan. It also shows the annual percentage rate and finance charges with other important facts about your loan.
A legally binding clause added to a purchase agreement that states specific conditions must be met within a set amount of time. These conditions if unmet can void the contract.
Any mortgage that is not government insured or guaranteed. These loans have more favorable terms but also carry more stringent requirements (such as higher FICO requirements)
|Debt-to-Income Ratio (DTI)||
The maximum percentage of your gross monthly income that can be spent on the mortgage payment and all other debts.
A legal document that formally transfers ownership of property from the seller to you.
The amount you pay for your home which is not financed with the mortgage loan (20% or more to avoid PMI)
|Earnest Money Deposit||
A deposit made at the time of the purchase agreement to demonstrate to the seller that you
The amount of ownership you have in your home. It
A special account used to hold monthly payments toward annual property taxes, homeowner insurance, and, if applicable, mortgage insurance.
|FHA Loan (Federal Housing Administration)||