Learn about the most common mortgage terms such as private. On a $200,000 loan that would mean paying an extra $4,000 to $10,000.
Refinancing: Replacing existing mortgage with a new loan. The purpose of refinancing is typically to improve the terms of a home loan by getting a lower interest rate, reducing the monthly mortgage payment, replacing an adjustable or variable rate loan with a fixed-rate loan or increasing the loan amount and taking the difference in cash.
Explore our glossary of common mortgage terms and definitions.. Home Mortgage Glossary. The packaging or mortgage loans secured by real property to be sold to a permanent investor with servicing retained for the life of the loan for a fee. The origination, sale, and servicing of mortgage.
The amount of a mortgage loan divided by the appraised value or sales price. Loan officer The person at a lending institution who solicits loans, acts as the representative for the lending institution, and represents the borrower at the lending institution.
A mortgage in which your interest rate and monthly payments may change periodically during the life of the loan, based on the fluctuation of an index. Lenders may charge a lower interest rate for the initial period of the loan.