Articles About Finance And Refinancing

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. Add to that a whole language unique to the mortgage loan process and you have the makings of an experience unlike any other.

Agreeing to the terms of your home loan is no small matter. It is important to understand every word of the contract and terms to which you are agreeing. Although it may be easy to ignore terms you don't understand now, you may be haunted by what you did not know when you are ready to sell or refinance.

Eliminate the mystery by taking the time to familiarize yourself with the terms that are common among lenders. Following are explanations of some of the most common terms used in the home loan process. Also, don't be afraid to call on the expertise of your credit union representative. They are happy to answer any questions that you have.

Adjustable Rate Mortgage: The amount of interest the lender charges on your principal varies. ARM's generally carry provisions for minimum and maximum interest rates. If you choose an adjustable rate mortgage, you can expect to make higher payments when interest rates move closer to the maximum and lower payments when rates hover nearer the minimum.

Annual Percentage Rate: The extension of credit is a privilege, but it is not free. The annual percentage rate of your loan gives you a picture of the annual cost of the credit that had been extended to you. You will find your annual percentage rate outlined in your initial contract, and on your monthly statements.

Appraisal: A trained professional will evaluate your home to determine its value. The estimated figure is derived from a combination of factors including market conditions and the property itself.

Closing Costs: These are costs, such as points, taxes and title insurance that must be paid at closing. These costs are not included in the cost of the home and are paid separately. Depending on your situation, there are a few lenders that may be able to extend you a loan that includes the amount of purchase and the closing costs.

Default: Failure to repay your mortgage loan according to the terms set forth in the loan contract.

Equity: This term is used in reference to the value in your home above the total amount of liens against your home.

Escrow: Your lender may hold money from each payment. This money is collected to satisfy expenses of home ownership such as taxes and insurance. If you have an escrow account your mortgage company will pay tax and insurance payments as they come due.

Fixed Rate Mortgage: Unlike an adjustable rate mortgage, a fixed rate mortgage maintains constant interest rates throughout the life of the loan.

Good Faith Estimate: Potential lenders may provide written documentation of anticipated costs and fees for your mortgage. This document is called a good faith estimate. It will give you an idea of how much you can expect to spend to secure a mortgage.

Mortgage: Your mortgage is the amount of the loan you secured to purchase your home, minus the down payment. Your home serves as collateral and is considered a guarantee for the loan.

Points: Each point represents one percent of the amount of your mortgage loan. Two points on a $100,000.00 mortgage loan equals $2,000.00.

Of course, there are a number of other terms that you will encounter during the loan process. Make sure you fully understand every word of your contract before you sign on the dotted line.

Nicole Soltau
President and Founder
http://CreditUnionRate.com/
The Leading Online Credit Union Directory

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Outskirts Press Announces How to Build Wealth, the Latest Highly-Anticipated Personal Finance - General Book from Brentwood, PA, Author Peter Suchy
Outskirts Press, Inc. has published How to Build Wealth by Peter Suchy, which is the author's most recent book to date. The 6 x 9 Paperback in the Personal Finance - General category is available worldwide on book retailer websites such as Amazon and Barnes & Noble for a suggested retail price of $16.95. The webpage at www.outskirtspress.com/howtobuildwealth was launched simultaneously with the book's publication.

Debt Consolidation Loan ? Any takers for Cheaper Loans?
Finding a wrong debt consolidation loan could land you in deeper debt woes instead of offering you relief. Every cent counts when you are struggling with debt. For many folks, looking for a debt consolidation loan for the first time can be a daunting task. I will share with you some quick tips on what to do when selecting a loan to consolidate your debts.

Applying For Credit Card With A Bad Credit Rating
Have you found yourself in a downward spiral trying to get caught up on bills, yet only finding your debt climbing higher and higher? Unfortunately, that is a reality for many people in society today. The amount of debt per family in the United States is at an all time high. This type of spending behavior and financial planning will lead you to have bad credit. That will only add to your cycle, as you will find your interest rates for major purchases and credit cards with climb as your credit rating falls. Thus, you will struggle more and more financially.

eLearners.com Launches Comprehensive Loan Center
Detailed student loan and financial aid information now available in easy-to-access format: Paying for college is often the most intimidating and confusing part of returning to school. Approximately half of all adult learners surveyed are using or expect to use either cash savings or employer tuition assistance/reimbursement to finance their educational costs, according to Eduventures, the leading research and consulting firm for the education industry. But there are several other options available which are highlighted in eLearners.com's newly launched loan center.

HelloLender A Mortgage Leads Generation Company Teams Up With a Large VOIP Network To Deliver More Live Mortgage Leads To Their Clients
HelloLender.com A Mortgage Lead Generation Company that specializes in generating non-Internet generated mortgage leads; and uses a toll free network to deliver free mortgage quotes to borrowers and live mortgage leads to loan officers has teamed up with a powerful VOIP Network.

Need A Better Auto Loan Deal For Your New Car Purchase?
Ready to get a new car and wonder how to get the best financing for it? While others are simply getting their new cars and buying it with whatever deal the dealer gives them, you know you can get better deals but are not sure how to do it. Here are some tips for you on how to get your new car - and an auto loan deal that is too good to pass by.

Personal Coaching For Mortgage or Foreclosure Solutions Relief
Are you one of the many who have been hit hard by the housing crises? Is your mortgage in jeopardy? Do you feel that foreclosure is the only way out? Are you at odds as to what to do and how to save your home? Are you looking for a solution, but just do not know what do to or where to start? Please take a step back and know that any confusion and fear that you are experiencing is very normal. The crisis was unexpected and the chances are you did not foresee such drastic changes in your life. Many people are feeling exactly the same way as you are feeling right now, but there is something you can do about it.

Just What Is A Reverse Mortgage?
It's very common today to find many retired people having difficult financial times trying to live on a small pension, or on an even smaller Social Security Check. Trying to keep up with their bills can seem like a losing battle.

Credit Card Fraud Hurts Businesses, Too
When we think of credit card fraud, we often think of individuals who have had their wallets or purses stolen and their credit cards used to finance unauthorized purchases Or the victims of identity thieves who learn that they owe thousands of dollars in debts that they never incurred

Mortgage Forgiveness Relief Act of 2007
The US

Credit Card Or Secured Credit Card? Which One Is Best For My Lifestyle
Are you pondering on whether you should apply for a credit card? Well, the answer quite simply is ? ?Yes? - you should apply for a credit card (this is true for most people). The credit cards seem to have transformed our lives. In fact, one can term credit cards as a revolution. Today, you find ads in TV/newspapers/website/shops and almost anywhere and everywhere; all asking you to apply for a credit card. When you look around, you see that most people have credit cards. In fact, most people have multiple credit cards. Everyone seems to apply for a credit card. So, why should you apply for a credit card?

Mortgage Refinancing - The Facts
Mortgage refinancing is when a homeowner gets a new home loan to pay off their existing one. The benefits of doing this are that they may be able to save money by getting lower interest rates or special deals. Refinancing is not the best option for everyone, though. For a person who is facing financial problems refinancing could spell trouble.

The Secured Loan
A secured loan is a loan availed by any individual who is a home owner for acquiring money for personal uses such as home renovation, purchasing any asset, traveling expenses, medical fees, education fees or for consolidation of bad debts etc. A secured loan requires you to deposit any asset (usually your home) as collateral against the loan. A secured loan is easier to avail than an unsecured loan because of the security factor attached.

Mortgage Accountability Association (MAA) Helps Borrowers and Lenders
To help protect consumers and honest mortgage brokers, Mortgage Accountability Association (MAA) offers an objective review and explanation of the consumer's loan documents.

Credit Card Debt: Do You Need Credit Help?
If you have credit card debt it is important to take its measure from time-to-time to determine whether or not you have a problem with your debt. If you are carrying a balance on more than one card (or simply a sizable balance on one card) then you could have a problem.