|Adjustable Rate Mortgage|
Also referred to as “Time Saver” documentation, whereby lenders use certified copies of documents from the borrower in lieu of mailing our written verifications, i.e. copies of three months bank statements instead of a verification of deposit.
Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments.
A schedule showing each payment of a loan to be amortized and breaking down the payment into the amount applied to principal and the amount applied to interest.
|Annual Percentage Rate||
(APR) This is the cost of your credit expressed in terms of an annual rate. Because you may be paying “points” and other closing costs, the APR disclosed is often higher than the interest rate on your loan. The APR can be compared to the APR for other loans for which you may have applied to give you a fair method of comparing price.
Estimation of the current market value of the property by a certified appraiser. The appraiser determines the value by comparing at least three different properties which are similar in regards to location, construction type, and price that are located within a one mile radius and have been sold within the last 12 months.
(Annual Percentage Rate) This is the cost of your credit expressed in terms of an annual rate. Because you may be paying “points” and other closing costs, the APR disclosed is often higher than the interest rate on your loan. The APR can be compared to the APR for other loans for which you may have applied to give you a fair method of comparing price.
Lender’s charge for paperwork involved in processing records for a new buyer assuming an existing loan.
|Assumption of Mortgage|
Direct debit is an automatic payment which is directly withdrawn from a personal checking account.
|Balloon (Call) Mortgage|
When the final installment payment on a note is greater than the preceding installment payments and it pays the note in full.
Interim Financing where a lender may offer a loan on a current property and new property together in which they require the current property to be sold within a certain amount of time and the equity is used to pay off the loan.
|Cash to close||
Equity/Funds required for the closing.
A bank-guaranteed check which is drawn directly from the issuing personal account at a financial institution.
This is the final step in executing a real estate transaction and precedes the entry in the land register as we know it. On the closing date the seller is paid, the loan amount is paid out and the ownership is officially transferred.