What is a mortgage?angel_keyl
A Mortgage (also called a home loan) is a legal contract made between a lender and a borrower that uses the lender’s property as collateral to secure the loan. If the borrower fails to pay the prearranged loan payments, the lender can take possession of the property.

What is a mortgage refinance?
A homeowner may acquire a new loan to pay off an existing loan. The main reasons that homeowners refinance is to lower their interest rates and/or to access cash from their home equity.

What is a home loan?
A home loan is a loan provided by a lender to the homeowner secured by a “lien” on the real estate.

What is a second mortgage?
A Second Mortgage is a loan taken out after the first mortgage and it is secured against the same asset as the first mortgage loan. The amount of a mortgage loan is based on the equity or ownership interest you have in your home.

What is a mortgage lender?
A mortgage Lender is a financial institution that provides prospective homeowners with the funds to pay off their home loan mortgage over a long-term period. Borrowers are required to pay monthly installments to their lender which includes principle, interest, and additional lender fees.

What is the difference between a mortgage broker and a mortgage banker?
A mortgage broker is the representative who matches borrowers with lenders based on corresponding needs and standards. Mortgage brokers arrange more than 80% of all transactions between borrowers and lenders, yet mortgage bankers actually finance and distribute the largest portion of home loans compared to all other lenders.

What is a mortgage principle?
The mortgage principle is the amount of money that a homeowner borrows excluding interest.

What does APR mean?
The Annual Percentage Rate ( APR ) is the percentage used to calculate the total cost of your cash advance loan by taking into account all fees charged by your lender in addition to your loan principle and interest.

What is a fixed rate mortgage?
A fixed rate mortgage is a home loan with interest rates and monthly payments that do not change throughout the life of the loan.

What is the adjustable rate mortgage?
An adjustable rate mortgage is a mortgage loan whose interest rate is adjusted based on an index. The monthly payments you make may change during the term of your mortgage loan with the changing interest rate. The fluctuating rates pass on part of the interest rate risk from the mortgage lender to you.

What is an interest-only mortgage?
Interest-only mortgages are loans that require the borrower to pay only interest on the principle in monthly installments for a fixed period. You can use one of our mortgage calculators to calculate exact payments.

What is an amortized mortgage?
Amortized Mortgages refers to loans that are paid in installments made of both principle and interest, and which is paid off (or amortized) over a fixed period of time.

How do you calculate LTV or loan-to-value ratio?
The loan-to-value (LTV) ratio of your home is calculated by dividing the fair market value of your home by the amount of your home loan.

What are lender fees?
Lender fees usually range anywhere from 2 to 5 percent and may include, but are not limited to, things such as appraisal costs, application costs, and document preparation.

What is the Truth in Lending Act?
The Truth in Lending Act is a federal law that was enacted as part of the Consumer Protection Act. This law requires lenders to reveal all information to the borrower and detail all costs associated with the transaction.