Download CryptoTab App FREE - CryptoTab is a free app for iOS and Android that pays you to browse the websites you normally would on your phone or your computer! Start earning your first Bitcoin today!

Do You Know These 6 Mortgage Terms? You Should

Posted by nick_niesen on October 29th, 2010

Do you recognize these mortgage terms? If you don't, you should get to know them now. These terms might help you recognize risk in your mortgage loan terms and mortgage process. They will also be beneficial in helping you decide if you are getting the right loan for your situation.

ARM (Adjustable Rate Mortgage) - A mortgage containing an interest rate that, after an initial period, can be changed by the lender. The majority of these contracts handle rate changes by evaluating a pre-determined interest rate index over which the lender has no control.

Due-on-sale clause - A provision of a loan contract that stipulates when the property is sold any outstanding loan balance must be repaid. This prevents the seller from transferring responsibility for an existing mortgage to the home buyer.

Equity grabbing - An unethical type of predatory lending where the loan provider purposely attempts to put the borrower into a loan that will result in a relatively quick default, so that way the lender can ?grab? the borrower?s equity.

Good faith estimate - The standard form from a lender that details any and all anticipated settlement charges that the borrower should expect to pay at closing. The lender is required to provide this document within three business days of their receipt of a loan application. Pay close attention to these details and make sure you understand completely all of the anticipated fees.

Negative amortization - An increase in the outstanding loan balance, resulting from multiple monthly payments that are less than the interest due. Watch out for this type of loan. This kind of mortgage loan is very risky.

Rate protection - Protection for a borrower against the danger that rates will rise between the time the borrower applies for a loan and the time the loan closes. This could help your loan be safer for you and more secure, long term.

Also See: Outstanding Loan, Mortgage Terms, Mortgage Loan, Loan Balance, Loan, Mortgage, Lender

Laserless Tattoo Removal Guide
Free Video Reveals Shocking Method To Remove Tattoos Naturally and Safely From Home And Without Laser!
CryptoTab Browser - Easy way for Bitcoin Mining | CryptoTab Browser
CryptoTab Browser is the world's first web browser with built-in mining features. Familiar Chrome user interface is perfectly combined with extremely fast mining speed. Mine and browse at the same time!

Quality Office Furniture USA Shipped Direct - Madison Liquidators
Nationwide vendor of quality office furnishings including Desks, Office Chairs, Conference Tables, Cubicles and more!

Lolli: Earn Free Bitcoin When You Shop Online!
Lolli is a rewards application that gives you bitcoin for shopping at your favorite online stores.

Advertise Here