Welcome or Register

Mortgage Glossary

ARM's: Adjustable Rate Mortgages are those whose rates of interest adjust periodically to reflect the market conditions.

Bridge Loan: A sum of money lent by a bank to cover an interval between two transactions, typically the buying of one house and the selling of another.

Commercial Loan: A debt based funding arrangement that a business can set up with financial institution.

Construction Loan: A short term (often 3 year) real estate financing secured by a mortgage on the property being financed. The loan is meant to cover the cost of land development.

Conventional Loan: A mortgage loan not insured by any government program. This loan is the most common and different from the FHA and VA loans, that are insured by the government.

FHA Loan: (Federal Housing Administration)A Loan issued by a federally qualified lender.

Income Property Loans: A loan secured on a property  which already has a source of income, such as rent. The loan is used to cover the debt service payments on the loan.

Low-doc loans: A loan that does not require borrowers to provide documentation of their income to the lenders or do not require much documentation.

LTV: One of the key risk factors that lenders assess when qualifying borrowers for a mortgage.

MIP: MIP, or "Mortgage Insurance Premium"  is an insurance policy that protects a mortgage lender in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligation of the mortgage.

Origination Fee: A fee charged by a lender on entering into a loan agreement to cover the cost of processing a loan.

PMI: Private Mortgage Insurance, insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan.

Points: Points are additional mortgage company charges for making a loan.

Ratios: The ratios of a consumer's proposed monthly mortgage payment, and proposed overall monthly debt to his or her gross monthly income. These ratios must fall within specific ranges for specific types of mortgages.

VA Loan: A mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs. The loan is issued by qualified lenders.

Quick Search

view all



No Min.

No Max.

Contact Us

* fields are required

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu