| Do you recognize these mortgage terms? If
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| | into a loan that will result in a
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| you don't, you should get to know them
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| | relatively quick default, so that way the
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| now. These terms might help you recognize
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| | lender can "grab" the borrower's equity.
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| risk in your mortgage loan terms and
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| | Good faith estimate - The standard form
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| mortgage process. They will also be
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| | from a lender that details any and all
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| beneficial in helping you decide if you
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| | anticipated settlement charges that the
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| are getting the right loan for your
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| | borrower should expect to pay at closing.
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| situation.
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| | The lender is required to provide this
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| ARM (Adjustable Rate Mortgage) - A
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| | document within three business days of
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| mortgage containing an interest rate
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| | their receipt of a loan application. Pay
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| that, after an initial period, can be
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| | close attention to these details and make
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| changed by the lender. The majority of
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| | sure you understand completely all of the
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| these contracts handle rate changes by
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| | anticipated fees.
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| evaluating a pre-determined interest rate
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| | Negative amortization - An increase in
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| index over which the lender has no
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| | the outstanding loan balance, resulting
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| control.
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| | from multiple monthly payments that are
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| Due-on-sale clause - A provision of a
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| | less than the interest due. Watch out for
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| loan contract that stipulates when the
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| | this type of loan. This kind of mortgage
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| property is sold any outstanding loan
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| | loan is very risky.
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| balance must be repaid. This prevents the
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| | Rate protection - Protection for a
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| seller from transferring responsibility
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| | borrower against the danger that rates
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| for an existing mortgage to the home
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| | will rise between the time the borrower
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| buyer.
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| | applies for a loan and the time the loan
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| Equity grabbing - An unethical type of
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| | closes. This could help your loan be
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| predatory lending where the loan provider
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| | safer for you and more secure, long term.
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| purposely attempts to put the borrower
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