Currently viewing the tag: "Mortgage Glossary"

Simple Real Estate Definitions : APR

On November 17, 2009 By

is an acronym for Annual Percentage Rate. It’s a government-mandated calculation meant to simplify the comparison of mortgage options.

A loan’s APR can always be found in the top-left corner of the Federal Truth-In-Lending Disclosure.

Because APR is expressed as a percentage, many people confuse it [...]

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Simple Real Estate Definitions : What is a Quitclaim Deed?

On September 9, 2009 By

What is a Quitclaim Deed?

By its most common definition, a quitclaim deed is a document by which one person passes legal and financial ownership of a home to another person.

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100% mortgage

On September 23, 2008 By

A 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 [...]

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10/1 ARM

On September 23, 2008 By

A (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 [...]

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10-year fixed mortgage

On September 23, 2008 By

A 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.

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1/1 ARM

On September 23, 2008 By

A (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 [...]

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11th District Cost of Funds Index – COFI

On September 23, 2008 By

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 [...]

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125% Loan

On September 23, 2008 By

A 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.

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12-month moving Treasury average (MTA)

On September 23, 2008 By

The 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 [...]

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15 year fixed mortgage

On September 23, 2008 By

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.

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