Mortgage Broker

MB.802919.000

Equal Housing

Opportunity

Mortgage Bankers

Association of America

Fixed Rates Conforming - the mortgage interest rate will remain the same throughout the term of the mortgage.

Non-conforming  - geared toward people with less than desirable credit (BCD), these loans have different underwriting criteria and each Lender's guidelines should be studied. for instance, a loan may require two appraisals by two different appraisers.

Adjustable Rate Mortgage (ARM) - the interest rate is adjusted periodically (1yr, 3yr, 5yr, 7yr, and 10yr) based on a pre-selected index. Some can be convertible into fixed rate loans. Also known as Renegotiable Rate Mortgage, Variable Rate Mortgage or the Canadian Rollover Mortgage.

Balloon Mortgage - is amortized for a longer period than the term of the loan.  Usually a 30 year amortization schedule on a 5 year term.  At the end of the term, the remaining outstanding principal is due.  This final payment is called a balloon payment.

Investor - is the source of money.

Construction Loan - is a short term loan to pay for construction of buildings or homes.  Usually used to provide periodic disbursements to the builder as construction progresses. Can be fixed or adjustable, convertible or non-convertible. Can also be turned into a long term loan.

No Income Verification Loan (NIV) - available on fixed rate loans where borrowers average bank deposits over the last three to six months are reviewed to match what is stated as income.  Usually requires excellent credit and heavy reserves.

No-Doc Loan - No verification of: income, assets, or employment. No stated income, IRS forms, or qualification ratios.

First Time Home Buyers - you can put as little as 3% down and get a conventional or FHA loan.

FHA Loan - is insured by the Federal Housing Administration and open to all qualified home buyers.  Loan amount limits vary depending on region and type of home.

VA Loan - is a long-term, low- or no-down payment loan guaranteed by the Department of Veteran Affairs.  Restricted to individuals qualified by military service or other entitlements.

Foreign Nationals - non US residents who are resident aliens can obtain mortgage loans.

COFIs (Cost of Funds Index) - the average cost of deposits and borrowings for savings institutions in the Federal Home Loan Bank's 11th District, as made available by the Federal reserve.

LIBORs (London Interbank Offered Rate) - the rate at which deposits of US dollars are traded in London is used as a common international interest rate index.

Convertible - you can switch from an ARM to a Fixed Rate Mortgage.

Non-Convertible - you cannot switch.