A long term mortgage, usually ten years or more. Also called an end loan.
Principal, interest, taxes and insurance, which comprise your monthly mortgage payment.
Power of Attorney
A legal document authorizing one person to act on behalf of another.
Necessary to create an escrow account or to adjust the seller's
existing escrow account. Can include taxes, hazard insurance, private
mortgage insurance and special assessments.
A privilege in a mortgage permitting the borrower to make payments in advance of their due date.
Money charged for an early repayment of debt. Prepayment
penalties are allowed in some form (but not necessarily imposed) in
Primary Mortgage Market
Lenders making mortgage loans directly to borrower's such as
savings and loan associations, commercial banks, and mortgage
companies. These lenders sometimes sell their mortgages into the
secondary mortgage markets such as to FNMA or GNMA, etc.
The amount of debt, not counting interest, left on a loan.
Private Mortgage Insurance (PMI)
In the event that you do not have a 20 percent down payment,
lenders will allow a smaller down payment - as low as 5 percent in some
cases. With the smaller down payment loans, however, borrowers are
usually required to carry private mortgage insurance. Private mortgage
insurance will usually require an initial premium payment and may
require an additional monthly fee depending on you loan's structure.