AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Download home front mortgage8/14/2023 ![]() ![]() Subject to other conditions (i.e., property appraisal) and is not binding on the lender.ĭiscount Point: One percentage point of the principal of a mortgage loan that some lenders require borrowers to pay immediately as a condition of making the loan. In the context of project financing, refers to a one-time payment out of liquidated damages to reflect cash flow losses from sustained underperformance.Ĭonstruction Loan: A short-term loan to finance the building phase of a real-estate project.Ĭredit approval: The lender has verified a borrower’s credit, bank references and employment, and approved a target mortgage loan amount and sales price prior to the borrower buying a home. Not all lenders calculate APR the same way.īuydown: A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer’s periodic payments, to repay the indebtedness. ![]() APR allows homebuyers to compare different mortgages based on the annual cost for each loan. ![]() Adjustable Rate Mortgage (ARM): A mortgage having an interest rate which is usually initially lower than that of a mortgage with a fixed rate but is adjusted periodically according to the cost of funds to the lender.Īppraisal: A professional opinion of the market value of a property.Īmortization: The act of paying off (as a mortgage) gradually, usually by periodic payments of principal and interest or by payments to a sinking fundĪnnual Percentage Rate (APR): The annual equivalent of a rate of interest when the rate is quoted more frequently than annually, usually monthly. ![]()
0 Comments
Read More
Leave a Reply. |