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| Adjustable Rate Mortgage (ARM) |
| Balloon |
| Conventional Mortgage |
| FHA Mortgage |
| Fixed Rate/Fixed Payment Mortgages |
| VA Mortgage |
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Adjustable Rate Mortgage (ARM)
A mortgage instrument in which the interest rate is adjusted periodically according to a pre-selected index. The terms, adjustment schedule and index to be used are negotiated by the lender.
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Balloon
A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date in the future, usually at the end of the term.
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Conventional Mortgage
Any mortgage that is not insured by the Federal Housing Administration (FHA), or guaranteed by the Veterans Administration (VA).
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FHA Mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.
Federal Housing Administration (FHA): An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA set standards for construction and underwriting but does not lend money or plan or construct housing.
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Fixed Rate/Fixed Payment Mortgages
Fixed rate mortgages have an interest rate and monthly payment that remain the same over the life of the loan. Some characteristics of fixed rate mortgages are consistent payment, payment terms come in 10, 15, 20 or 30 year periods and it tends to be the loan with the least risk due to its payment stability.
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VA Mortgage
A mortgage loan that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage.
VA (Department of Veterans Affairs): An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss an thus encourages lenders to make mortgages to veterans.
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $333,700 with closing costs of $6,674. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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