First Time Home Buyers
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"Mortgage Glossary"
A 100% mortgage is a mortgage loan that requires no borrower downpayment; the loan amount covers the full purchase price of the property. The borrower may be required to provide another source of collateral, in addition to the property itself, to secure the mortgage loan.
Continue Reading →A 10/1 ARM (adjustable-rate mortgage) has an initial interest rate that remains in effect for 10 years, after which time the rate is adjusted once annually. The “10″ of “10/1″ refers to the number of years the initial rate will apply; the “1″ refers to the time interval between subsequent rate adjustments.
Continue Reading →A 10-year fixed mortgage is a mortgage loan that keeps the same rate of interest throughout the loan’s 10-year life. In most cases, fixed-rate mortgages are fully amortizing, so that the debt will be paid off at the end of the 10-year term.
Continue Reading →A 1/1 ARM (adjustable-rate mortgage) has an initial interest rate that remains in effect for one year, after which time the rate is adjusted once annually. The first “1″ of “1/1″ refers to the number of years the initial rate will apply; the second “1″ refers to the time interval between subsequent rate [...]
Continue Reading →The 11th District Cost of Funds Index (COFI) is a weighted average of interest rates paid on checking and savings accounts in Arizona, California, and Nevada. The index, published at the end of each month, reflects the cost of deposit funds for the financial institutions in these states. COFI is [...]
Continue Reading →A 125% loan is a mortgage loan that allows the homeowner to borrow up to 125 percent of a property‘s value. If a home is valued at $300,000, a 125% loan would allow the homeowner to borrow up to $375,000.
Continue Reading →The 12-month moving Treasury average (MTA) is a financial index that’s used as a base rate, or benchmark, for adjustable-rate mortgages. The MTA is a monthly average, based on the most recent 12 months, of the one-year constant maturity Treasury (CMT) index.
Continue Reading →A 15-year fixed mortgage is a mortgage loan that keeps the same rate of interest throughout the loan’s 15-year life. In most cases, fixed-rate mortgages are fully amortizing, so that the debt will be paid off at the end of the 15-year term.
Continue Reading →A 15-year fixed mortgage is a mortgage loan that keeps the same rate of interest throughout the loan’s 15-year life. In most cases, fixed-rate mortgages are fully amortizing, so that the debt will be paid off at the end of the 15-year term.
Continue Reading →A 15-year fixed mortgage refinance is a type of mortgage loan that replaces an existing mortgage loan; the new debt is structured with a 15-year maturity and an interest rate that stays the same throughout those 15 years.
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