The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts agai [..]

Provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed or some other default occurs.

A way to reduce the remaining balance on the loan by paying more than the scheduled principal amount due.

A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

The date that the interest rate changes on an adjustable-rate mortgage (ARM).

The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).

An analysis of a buyers ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of mortgage you plan to use, the area where you want to purch [..]

The gradual repayment of a mortgage loan, both principle and interest, by installments.

The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.