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Read All Western Mortgage’s Mortgage Terminology

Read All Western Mortgage’s Mortgage Terminology to know market’s generally used mortgage terms. Please Visit our website for more info. http://www.awmlending.com/mortgage-glossary.php or for further questions, call us on 702-850-2790.

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Read All Western Mortgage’s Mortgage Terminology

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  1. All Western Mortgage Mortgage Glossary: Commonly Used Mortgage Terms

  2. Are planning to take a mortgage loan? • If you are planning to take a mortgage loan, the application form’s cryptic vocabulary consisting of typical mortgage terminology can make the process a little difficult for you. Therefore, here are some commonly used mortgage terms that you should be aware of:

  3. Adjustable Rate Mortgage, Annual Percentage Rate & Appraisal • Adjustable Rate Mortgage: ARM is a type of home loan in which the interest rate changes periodically on the basis of the standard financial index. • Annual Percentage Rate: An APR is the standardized way of estimating or calculating the cost of a mortgage. It includes interest, mortgage insurance and certain credit costs. • Appraisal: A report estimating the value of a property. It is written by a qualified appraiser.

  4. Balloon Mortgage & Balloon Payment • Balloon Mortgage: A type of mortgage that allows the borrower to make lower monthly payments for a certain amount of time. After that period gets over, the borrower has to pay the remaining amount as lump-sum. • Balloon Payment: The lump-sum payment on the balloon mortgage.

  5. Closing costs, Collateral & Down-payment • Closing costs: Closing costs are expenses incurred by both the buyer and the seller for transferring the ownership of a home. It generally includes origination fee, attorney's fee, taxes, escrow payments, title insurance and sometimes discount points. • Collateral: Property pledged as security to the mortgage. • Down-payment: The portion of cost of the home that you pay upfront.

  6. Escrow & Foreclosure • Escrow: An account controlled by a neutral third party, which holds the documents and money involved in a real estate transfer. The funds remain in the escrow until all the conditions of the sale are fulfilled. • Foreclosure: The legal procedure by which the lender can acquire the property if the homeowner defaults on mortgage payments.

  7. Good Faith Estimate, Pre-payment penalty & Title Insurance • Good Faith Estimate: A GFE is the written estimate of closing costs. It is provided by the lender to the homeowner. • Pre-payment penalty: A fee charged to borrowers who pay their loan early. • Title Insurance: A legal document that guarantees the title of the property to the homeowner.

  8. Visit All Western Mortgage’s mortgage glossary These were some commonly used mortgage terms. To access the complete mortgage glossary, visit All Western Mortgage’s webpage - http://www.awmlending.com/mortgage-glossary.php

  9. CONTACT US Phone: 702-850-2790 info@awmlending.com http://www.awmlending.com/ All Western Mortgage Address: 8345 W Sunset Rd, Suite 380 Las Vegas, NV  89113

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