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RefiAdvisor. Mortgage Tutorial 2007 Edition

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Table of Contents

Five Things You Need To Know Before Refinancing a Mortgage

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First: Should You Refinance?

I. Introduction………..3

II. Should You Refinance?...4

Second: What Does Your Credit Look Like? III. Your Credit Rating………6

IV. What is a Credit Score?...7

Third: What Will Refinancing Cost? V. Costs & Fees..………..………….…………7

VI. Fee Chart………8

VII. 30 Year vs. 15 Year………9

VIII. Rates & Points……….11

Fourth: Shop Around for the Best Deal IX. Lenders & Brokers….………13

X. Shop Compare & Negotiate………..………15

XI. Make The Lenders Compete………..………..15

XII. Mortgage Shopping Worksheet………..………17

Fifth: Common Pitfalls to Avoid XIII. Fair Lending Laws………...19

XIV. Protect Yourself From Predatory Lending……….…....…19

XV. What Tactics do Predatory Lenders Use?………20

XVI. Options If Your Loan is Not Approved……….……..…..….21

Online Resources……….………23

Glossary of Terms………25

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Number One: Should you Refinance?

If you are a mortgage holder who was fortunate enough to finance with a low interest rate, you may not want to refinance your present mortgage. Maybe you financed your home when mortgage rates were higher. Or perhaps you have an adjustable rate mortgage and would like to refinance under better terms. Consider also that if you lower your interest rate by refinancing you would also lower your monthly mortgage payment. By refinancing you could potentially shorten the term of your loan and pay less interest for your home. You could also borrow money against your home to pay off other higher interest debt. Should you refinance your mortgage? This book will answer some questions that may help you decide. If you do refinance your mortgage, the process will remind you of what you went through financing the original mortgage. That is because refinancing is simply taking out a new mortgage. You will have many of the same procedures, as well as the same expenses, during the refinance.

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hand to pay an additional amount each month, you can pay down the principal on the loan faster by making additional payments.

If you are considering borrowing against the equity in your home to pay off other bills or make a purchase, the interest rate may not be the most significant factor for you to consider. If you are planning on paying off high interest rate credit cards it may be worth your while to refinance even if the rate is slightly higher than your current mortgage rate.

Consider the Loan to Value of your home when making your decision to refinance. The Loan to Value is the ratio of the mortgage loan amount to the value of your home. For instance, if your home is worth $200,000 and the loan amount is $150,000, then your Loan to Value is 75%. ($150,000 divided by $200,000 multiplied by 100 = the percentage) Your lender will consider this value when approving your loan as there is a maximum Loan to Value ratio they will loan to. Keep in mind that the interest rate you receive can be tied to the Loan to Value amount of your property. Generally, the higher the Loan to Value, the higher your interest rate will be. Your credit score may also be tied to the Loan to Value ratio that you are able to qualify for when the lender approves your loan. We will discuss how credit scores affect your mortgage in a later section of this book. To Summarize, refinancing a mortgage can be a good idea for any homeowner who:

• Wants to get out of a high interest rate loan to take advantage of lower mortgage rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile.

• May have originally purchased their home on a Real Estate contract and want to have the property and the mortgage in their own name.

• Have an adjustable rate mortgage and want a fixed rate mortgage to have the certainty of a fixed mortgage payment for the duration of the loan.

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• Wants to build up the equity in their home more quickly by converting to a loan with a shorter term.

• Wants to draw on the equity remodel their home or to get cash for a major purchase or for their children's college expenses.

If you decide that refinancing is not worth the expense, ask your mortgage lender whether you may be able to obtain all or some of the new terms you want by agreeing to a modification of your existing mortgage.

Number Two: What does your credit look like?

Your credit rating is one of the main considerations lenders use when deciding whether or not to approve your loan. This will also help determine your interest rate. Credit ratings have become much less restrictive when applying for loans today; however, excellent credit will guarantee a better interest rate. The first thing you must do is ensure your credit reports are accurate. To do this you’ll need

to request a copy of your credit report from each of the three

credit reporting agencies: Equifax, Experian, and TransUnion. Be careful when obtaining your credit reports as many companies

providing these reports will almost always try and sell you services that you do not want or need. Recent legislation requires reporting agencies to provide one free

copy of their credit history per year. You can sign up for this at

AnnualCreditReport.com (click the link to visit

the website). This site will allow you to receive one report for each of the reporting agencies every twelve months. If you are unable to use this service or need additional reports you will need to pay for them.

An excellent resource for additional credit reports is “Online Credit Info”:

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will need to carefully review each of these reports for errors. If you discover errors you can dispute items on your credit report by contacting the individual credit agency. Contact information for each credit agency is listed below:

Equifax http://www.equifax.com (800) 685-1111

Experian http://www.experian.com (888) 397-3742

TransUnion http://www.transunion.com (800) 916-8800

The credit agencies use the information on your credit history to calculate your credit score. A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –– specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents. The free credit reports you receive online typically do not show your credit score. An excellent resource to view your credit score online is “Free Credit Score”: http://CreditScore.Refiadvisor.com (click the link to visit the website). If you are concerned about a poor credit rating remember this: It is much easier to secure financing today with poor credit than it was ten years ago. You may pay a higher interest rate for your financing; however, you should not have a problem locating lenders that will work with you.

Number Three: What Will Refinancing Cost?

There are many costs associated with refinancing your mortgage. Some can be avoided. The fees described below are the charges that you are most likely to encounter in a refinancing.

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• Title Search & Title Insurance. This charge will cover the cost of examining the public records to confirm ownership of the property. It also covers the cost of a policy, usually issued by a title insurance company, which insures the policy holder in a specific amount for any loss caused by discrepancies in the title to the property. Be sure to ask the company carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy.

Because costs may vary significantly from area to area and from lender to lender, the following are estimates only. You may be able to avoid many of these fees by using documents from your previous closing. The appraisal, survey, and title search from your previous closing may still be valid for your second closing. Make sure you have all of your closing papers in a safe place. Your actual closing costs may be higher or lower than the ranges indicated below:

Application Fee $75 to $300 Appraisal Fee $150 to $400 Survey Costs $125 to $300 Homeowner’s Hazard Insurance $300 to $600 Lender’s Attorney’s Review Fees $75 to $200 Title Search and Title Insurance $450 to $600 Home Inspection Fees $175 to $350 Loan Origination Fees 1% of loan Mortgage Insurance 0.5% to 1.0%

Points 1% to 3%

• Lender’s Attorney’s Review Fees. The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender. Settlements are conducted by lending institutions, title insurance companies, escrow companies, real estate brokers, and attorneys for the buyer and seller. In most situations, the person conducting the settlement is providing a service to the lender. You may also be required to pay for other legal services relating to your loan which are provided to the lender. You may want to retain your own attorney to represent you at all stages of the transaction including settlement.

• Loan Origination Fees and Points. The origination fee is charged for the lenders work in evaluating and preparing your mortgage loan. Points are prepaid finance charges imposed by the lender at closing to increase the lender’s yield beyond the stated interest rate on the mortgage note. One point equals one percent of the loan amount. For example, one point on a $75,000 loan would be $750. In some cases, the points you pay can be financed by adding them to the loan amount. The total number of points a lender charges will depend on market conditions and the interest rate to be charged.

• Appraisal Fee. This fee pays for an appraisal which is a supportable and defensible estimate or opinion of the value of the property. An excellent online resource for an appraisal is: Electronic Appraiser at http://eappraiser.refiadvisor.com (click to visit)

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mortgage loan varies by state, type of lender, and type of loan. Prepayment penalties are forbidden on various loans including loans from federally chartered credit unions, FHA and VA loans, and some other home-purchase loans. The mortgage documents for your existing loan will state if there is a penalty for prepayment. In some loans, you may be charged interest for the full month in which you prepay your loan.

• Miscellaneous. Depending on the type of loan you have and other factors, another major expense you might face is the fee for a VA loan guarantee, FHA mortgage insurance, or private mortgage insurance. There are a few other closing costs in addition to these.

To summarize costs: A homeowner should plan on paying an average of 3 to 6 percent of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second

mortgages that may exist.

One way of saving on these costs is to check first with the lender who holds your current mortgage. The lender may be willing to waive some of them, especially if the work relating to the mortgage closing is still current. This could include the fees for the title search, surveys, inspections, and so on.

30 Year vs. 15 Year Mortgage Terms

Another thing to consider is the term of your loan.

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Advantages Considerations

15 Year

Lower Overall Mortgage Cost Higher Monthly Payment

Builds Equity Faster Must Qualify for Higher Monthly Payment

You have Debt for Only 15 Years You have Less Cash for Other Expenses

Lower Interest Rate Less Money goes toward Tax Deductions

30 Year

Lower Monthly Payment Higher Overall Mortgage Cost

Qualifying is Easier You Pay More in Overall Interest

You have More Cash for Other Expenses You have Debt for 30 Years

More Money goes toward Tax Deductions Higher Interest Rate

In addition to considering a 15 year vs. 30 year mortgage you should decide on fixed rate vs. adjustable rate mortgages. The decision to finance with a fixed or adjustable interest rate comes down of several questions. First, how long do you plan to keep your home? If you know that you will be selling the house within 3 to 5 years then the clear choice is an adjustable rate mortgage. The most common adjustable rate loans have fixed rates for the first 3 to 5 years of the loan. These 3 and 5 year adjustable rate mortgages will offer better interest rates than a 30 year fixed mortgage. The same principal holds if you know you will be refinancing your mortgage in 3 to 5 years, for example to buy a vacation home.

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mortgage. You might pay a slightly higher interest rate but your payments will not go up due to interest rate hikes.

Rates and Points

There are a number of factors that determine the mortgage interest rates for any given borrower. These factors include: the type of loan you are applying for, (fixed vs. adjustable) your credit score, the Loan to Value ratio of your home, your documentation, the type of property, and the points you pay. If you opt for a fixed rate mortgage your interest rate will be higher than an adjustable rate mortgage. Fifteen-year mortgage interest rates are also typically lower than 30 year interest rates. As mentioned earlier, generally speaking, the higher your Loan to Value ratio, the higher your interest rate will be. Your documentation can also affect the interest rate of your mortgage. Some programs require very little documentation of your assets or income; these programs serve a purpose, but typically charge much higher interest rates. The more documentation of your pay stubs, tax returns, and bank statements you can provide, the easier it will be for you to quality for a low interest rate mortgage. The type of property you are refinancing can also affect your mortgage interest rate. Interest rates are typically lower for your primary residence vs. second homes or investment properties.

Points act to lower the interest rate you qualify for by pre-paying a portion of the interest before the loan. A "point" or "discount point" is equivalent to 1% of the loan and usually reduces or "discounts" the loan rate by an eighth of a percentage point. For example: You want to get a loan for $100,000 to buy a home. Each "point" would cost you 1% of $100,000 or $1,000 but would reduce your loan's interest rate by .125%. The lender might offer you an 8.0% loan with zero points, a 7.875% loan with one point, or a 7.75% loan with 2 points.

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use points to make their interest rates appear lower. Be aware that lower interest rate offered by a lender may translate into higher points requirements.

Will You Have to Pay a Penalty?

Be sure and check if your current mortgage has a pre-payment penalty. Many mortgage lenders do include payment penalties in their offerings. Most pre-payment penalties only last for the first three years of the loan, so if you have one and have been in your house for a while you may not have to pay it. There are two types of pre-payment penalties: hard and soft. The hard pre-payment penalty goes into effect whether you sell your house or refinance the mortgage. A soft penalty only applies if you refinance the mortgage; not when you sell the house. If you think you might have to move within the first three years of owning the home, make sure you let the broker know you require a soft pre-payment penalty only.

Obtain All Important Cost Information

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You will often be able to roll your closing costs and pre-paid items into the loan amount of your mortgage, so you won’t have to come up with all the cash at closing. Be sure to get information about mortgages from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate is not enough. Ask for information about the same loan amount, loan term, and type of loan so that you can compare the information.

Number Four: Shop Around

For the Best Deal

Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage—whether it’s a home purchase, a refinancing, or a home equity loan—is a product, just

like a car, so the price and terms may be negotiable. You’ll want

to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.

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should consider contacting more than one broker, just as you should with banks or thrift institutions.

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There’s no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than those you have found elsewhere. Once you are satisfied with the terms you have negotiated, you may want to obtain a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, and the number of points to be paid. A fee may be charged for locking in the loan rate. This fee may be refundable at closing. Lock-ins can protect you from rate increases while your loan is being processed; if rates fall, however, you could end up with a less favorable rate. Should that happen, try to negotiate a compromise with the lender or broker. Remember: Shop, Compare, and Negotiate. When searching for a loan, it is important to shop around, compare costs and terms, and to negotiate for the best deal. Your local newspaper and the Internet are good places to start shopping for a loan. You can usually find information both on interest rates and on points for several lenders. Since rates and points can change daily, you’ll want to check your newspaper often when shopping for a home loan. But the newspaper does not list the fees, so be sure to ask the lenders about them.

Use the Internet to get lenders to compete for your business. There are several sites on the web you can use to do this. RefiAdvisor has an excellent mortgage tool for comparing loan offers. (See the link below) Be careful using sites that ask for your Social Security Number. Make sure the sites use Secure Socket Layer (SSL) when entering your information. The Mortgage Tool only asks for your contact information and does not require a Social Security Number. Fill out one short form to receive multiple competitive quotes from a vast network of screened lenders and mortgage brokers. It’s a simple, one page, no-obligation request form requires no sensitive information.

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Other resources include:

http://LowCostLending.Refiadvisor.com http://LendersBlock.Refiadvisor.com

http://LowRateSource.Refiadvisor.com http://ALP.Refiadvisor.com

http://Ameriquest.Refiadvisor.com http://PlanetLoan.Refiadvisor.com

There is a complete list of direct lenders and brokers available in the Resources

Section. You should fill out the contact forms located on each of these sites to

receive as much information and as many offers for your loan as possible.

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Mortgage Shopping Worksheet

2 Name of Lender: . . . Name of Contact: . . . Date of Contact: . . . Mortgage Amount: . . . mortgage 1 mortgage 2 mortgage 1 mortgage 2

Basic Information on the Loans

Type of Mortgage: fixed rate, adjustable rate, conventional, FHA, other? If adjustable, see below . . . Minimum down payment required . . . Loan term (length of loan) . . . Contract interest rate . . . Annual percentage rate (APR) . . . Points (may be called loan discount points) . . . Monthly Private Mortgage Insurance (PMI) premiums . . . . How long must you keep PMI? . . . Estimated monthly escrow for taxes and hazard insurance Estimated monthly payment (Principal, Interest, Taxes, Insurance, PMI) . . .

Fees

Different institutions may have different names for some fees and may charge different fees. We have listed some typical fees you may see on loan documents.

Application fee or Loan processing fee . . . Origination fee or Underwriting fee . . . Lender fee or Funding fee . . . Appraisal fee . . . Attorney fees . . . Document preparation and recording fees . . . Broker fees (may be quoted as points, origination fees, or interest rate add-on) . . . Credit report fee . . . Other fees . . .

Other Costs at Closing/Settlement

Title search/Title insurance

For lender . . . For you . . . Estimated prepaid amounts for interest, taxes, hazard insurance, payments to escrow . . . State and local taxes, stamp taxes, transfer taxes . . . Flood determination . . . Prepaid Private Mortgage Insurance (PMI) . . . Surveys and home inspections . . .

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Mortgage Shopping Worksheet—Page 2

Lender 1 Lender 2 Name of Lender: . . . mortgage 1 mortgage 2 mortgage 1 mortgage 2

Other Questions and Considerations about the Loan

Are any of the fees or costs waivable? . . .

Prepayment penalties

Is there a prepayment penalty? . . . If so, how much is it? . . . How long does the penalty period last? (for example, 3 years? 5 years?) . . . Are extra principal payments allowed? . . .

Lock-ins

Is the lock-in agreement in writing? . . . Is there a fee to lock-in? . . . When does the lock-in occur—at application,

approval, or another time? . . . How long will the lock-in last? . . . If the rate drops before closing, can you lock-in at a lower rate? . . .

If the loan is an adjustable rate mortgage:

What is the initial rate? . . . What is the maximum the rate could be next year? . . . What are the rate and payment caps each year and over the life of the loan? . . . What is the frequency of rate change and of any changes to the monthly payment? . . . What is the index that the lender will use? . . . What margin will the lender add to the index? . . .

Credit life insurance

Does the monthly amount quoted to you include a charge for credit life insurance? . . . If so, does the lender require credit life insurance as a condition of the loan? . . . How much does the credit life insurance cost? . . . How much lower would your monthly payment be without the credit life insurance? . . . If the lender does not require credit life insurance, and you still want to buy it, what rates can you get

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Number Five: Common Pitfalls to Avoid

Fair Lending Is Required by Law. The Equal Credit Opportunity Act prohibits lenders from discriminating against credit applicants in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status, age, whether all or part of the applicant’s income comes from a public assistance program, or whether the applicant has in good faith exercised a right under the Consumer Credit Protection Act. The Fair Housing Act prohibits discrimination in residential real estate transactions on the basis of race, color, religion, sex, handicap, familial status, or national origin. Under these laws, a consumer cannot be refused a loan based on these characteristics nor be

charged more for a loan or offered less favorable terms based on such characteristics.

Protect Yourself from Predatory Lenders

Buying or refinancing your home may be one of the most

important and complex financial decisions you'll ever make.

Many lenders, appraisers, and real estate professionals stand ready to help you get a nice home and a great loan. However, you need to understand the home buying process to be a smart consumer. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud.

What is Predatory Lending?

In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:

• Sell properties for much more than they are worth using false appraisals.

• Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan.

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• Charge high interest rates to borrowers based on their race or national origin and not on their credit history.

• Charge fees for unnecessary or nonexistent products and services.

• Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.

• Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.

• "Strip" homeowners' equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.

• Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.

What Tactics Do Predatory Lenders Use?

• A lender or investor tells you that they are your only chance of getting a loan or owning a home. You should be able to take your time to shop around and compare prices and houses. • The house you are buying costs a lot more than other homes in the neighborhood, but isn't

any bigger or better.

• You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.

• You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud - it does not.

• The cost or loan terms at closing are not what you agreed to.

• You are told that refinancing can solve your credit or money problems.

• You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.

Remember:

If a deal to buy, repair or refinance a house sounds too good to be true, it usually is!

Reasons a Loan May Not Be Approved

There are several common reasons why lenders deny a loan application.

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• Not enough income - Your ability to pay off a loan is reflected in your current earnings and your future income potential. Lenders may decline a loan if the homebuyer does not meet the income requirements or cannot show proof of stable income. It is to your advantage to establish a consistent and stable income.

• Too much debt - If your existing debts (credit cards, car loans, student loans) exceed the debt-to-income ratio for the loan, determine if you can pay off some of your debts before you apply for a mortgage. If you have credit cards you don't use, cancel them. Inactive credit cards are still considered potential debt. For more assistance with debt consolidation or other credit needs, contact a HUD Housing counseling agency.

Options If Your Loan Is Not Approved

A lender is required by law to explain in writing the reasons why your loan was not approved. An important thing to remember is that if the lender declines your loan application it does not necessarily mean that the purchase of a home is not in your future.

You still have some options available:

• Consider another lender - You may want to research other lenders in your area. Fees and loan options vary by lender. You may be able to find another lender that offers more suitable loan packages or charges lower fees.

• Increase your equity - If you can increase the equity in your home, you will reduce the amount of money you have to borrow. This might help you qualify for the loan.

• Contact local HUD Office - Check with your local HUD office about additional programs and resources available to you, or Click here for a list of HUD programs available nationwide.

• Consumer Credit Protection Act (1960) - Guarantees confidentiality of credit reports and allows consumers to correct inaccurate information in their reports.

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• Equal Housing Opportunity - Prohibits housing discrimination based on race, sex, marital status, color, religion, age, handicap, family status or national origin.

• Fair Housing Act - Prohibits the discrimination based on race, sex, marital status, handicap, or national origin in any real estate transaction.

• Federal Consumer Credit Protection Act (commonly known as the Truth in Lending Act) (1969) - Requires that lenders disclose the actual terms and conditions of a loan before an applicant commits to the loan.

• Home Mortgage Disclosure Act (1975) - Provides information to help determine whether public institutions are assisting the housing needs of their communities and neighborhoods.

• Real Estate Settlement Procedures Act of 1974 (RESPA) - Encouraging homeownership through consumer protection, this act regulates certain lending actions related to closing/settlement. Some of its provisions are:

- RESPA requires lenders to provide buyers a good faith estimate of the cost of the loan, including disclosure of the Annual Percentage Rate (APR).

- RESPA requires lenders to provide buyers with general information about settlement costs.

- Lenders must provide buyers a copy of the Mortgage Servicing Disclosure Statement, regarding loan servicing and transfer.

- Within three days after receiving the loan application, lenders must provide the buyer with an estimate of closing costs and monthly payments.

- RESPA provides the borrower the opportunity to see the HUD-1 Settlement Statement one day before the actual settlement.

- Prohibits kickbacks between Real Estate professionals for referrals and prohibits fee-splitting and receiving unearned fees for services not rendered.

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Online Resources

Fill out the contact forms at each of the links below to receive information and offers from the maximum number of lenders and brokers.

Credit Resources

Annual Credit Report Request a free copy of your credit history from each reporting agency. Available once every 12 months. Does not provide your credit score.

http://www.AnnualCreditReport.com

Online Credit Info

œœœœ (Top Rated)

Receive a free copy of your credit history and a free 30-day trial membership in the Credit Monitoring Program. This service provides important information about understanding and maintaining your credit history.

http://OnlineCreditInfo.Refiadvisor.com

Free Credit Score Get your credit score free and receive a free

trial of the “Privacy Matters” service. http://CreditScore.Refiadvisor.com

Make The Lenders Compete

America’s Lending Partners

œœœœ (Top Rated)

Whether your Credit is Perfect or Less than Perfect, you can find the best deal on your home loan. It's personal, convenient, and secure. The Service is free and there is no obligation. Complete one form and lending partners will call you directly. You compare the loan offers and decide which offer is best for you.

http://ALP.Refiadvisor.com

Planet Loan Country-Wide Lender - Regardless of credit issues, Full Spectrum Lending will work with you to find the best loan for your situation.

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Online Resources

(Page Two)

RefiAdvisor Mortgage Tool

œœœœ (Top Rated)

Fill out one short form to receive multiple competitive quotes from a vast network of screened lenders and mortgage brokers. It’s a simple, one-page, no-obligation form that requires no sensitive information.

http://www.refiadvisor.com/refinance.php

Lender’s Block Get up to four free quotes in minutes. Fast and easy application. Requires no sensitive information. No obligation.

http://LendersBlock.Refiadvisor.com

Low Cost Lending Free rate checks. No obligation, No Credit Check.

http://LowCostLending.Refiadvisor.com

Low Rate Source Search rates for a variety of different lenders.

http://LowRateSource.Refiadvisor.com

National Lenders

ING Direct

œœœœ (Top Rated)

Great Rates, No Points, Guaranteed low closing costs. Save thousands with ING’s Orange Mortgage.

http://ING.Refiadvisoro.com

Ameriquest Mortgage Ameriquest is the nation’s leader in sub-prime mortgages with over 250 branches nationwide.

http://ameriquest.refiadvisor.com

Miscellaneous Resources

Electronic Appraiser With Electronic Appraiser anyone can instantly determine the value of any home. It’s quick & easy.

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An amortizatio or the entire ter

(26)

ARM See assessment Cha cur assignment The per assumption An pay the wha the - B - balloon mor Mo biweekly mo A lo fast wou bond A c and bridge loan A lo whe kno broker An cha buy-down A ty pay 3-2 rate e: adjustable ra t arges levied ag bs, sewers, or t e transfer of a c rson. n agreement bet yments for a mo re are no closin at is in the mor mortgage, or n rtgage rtgage with a fi ortgage oan requiring p ter than month uld be. certificate servin d sold in the se oan to "bridge" en a borrower own as a swing intermediary b arges a fee or c ype of mortgag yment in return -1 interest pay es buy-downs m ate mortgage. gainst a proper grounds maint contract or a rig tween a buyer ortgage and ac ng costs and th rtgage or deed

not permit the b

inal lump sum

payments of pri ly payment loa

ng as security f

econdary marke

the gap betwe purchases a ne g loan. etween the bo commission for ge which requir for a below ma ment plans or may induce buy

rty for tax purpo tenance.

ght to buy prop

and a seller, re ccepts the liabi he loan's intere of trust, the len buyer to assum

payment that is

ncipal and inte ans. The payme

for payment of

et.

een the termina ew home befor

rrower and the r services. es the buyer to arket interest ra pays closing co yers to purchas oses or to pay perty at given ra equiring lender lity. Assuming est rate may be nder may raise me the loan at a

Go to Top

s greater than

erest at two-wee ent for a biwee

a debt. Bonds ation of one mo re receiving cas e lender. The br o pay additiona ate. Another fo osts such as th se property the for municipal o

ates and terms

r approval, whe a loan can be e lower than cu e the interest ra all. preceding paym ek intervals. Th kly mortgage is s backed by mo

ortgage and the sh proceeds fro

roker may repr

al discount poin orm of a buy-do he origination fe ey might otherw or association im s from a mortga

ere the buyer ta advantageous rrent market ra ate, require the

ments and pay

his type of loan s half what a m ortgage loans a e beginning of a om the sale of resent several l nts or make a s own is one in w ee. During time wise not have p

mprovements s

agee to anothe

akes over the for a buyer be ates. Dependin buyer to qualif ys the loan in fu n amortizes mu monthly paymen

are pooled toge

another, such a a prior home. A

lending source

substantial dow which the seller

(27)

- C - cap A li mea cap amo term certificate o A V pro certificate o A d closed-end A m end closing cos Cos The follo Fe Ori Dis Cre Ap As ass cloud A c collateral Som for commitmen A fe and

mit in how muc ant to protect t p or an annual c

ount of the inte m of the loan. A of reasonable Veterans Admin perty. of title ocument rende mortgage mortgage princi d mortgage. sts sts payable by ese costs can b owing:

es Paid to the

igination fee scount points edit report fee ppraisal fee

sumption fee if sumed

claim to the title

mething of valu a mortgage loa nt fee ee charged wh d points and b) ch an adjustabl he borrower fro cap. A paymen erest rate. A life An annual cap

value (CRV)

nistration appra

ering an opinio

pal amount tha

both seller and be up to ten pe e Lender f loan is e of a property t ue pledged as s an. en a) an agree the lender gua

le rate mortgag om large increa

nt cap is a limi e-of-loan cap p limits the amo

aisal that estab

n on the status at is fixed and c d buyer at the t ercent of the mo Fees Paid in Interest from the beginning payment Hazard insura Mortgage ins that, if valid, wo security for a lo ement is reache arantees to lock Go to Top ge's monthly pa ases and may it on the month restricts the am ount the interes

blishes the max

s of a property's

cannot be incre

time of settlem ortgage amoun

n Advance

the closing dat g of the 1st ance premium urance premiu ould prevent a oan. In mortgag ed between a le k in that rate. ayment or inter be a payment hly payment. An

mount the inter st rate can incre

ximum VA mort

s title based on

eased during th

ent, when the p nt and usually i Other Ch te to m Title sear Sales com Legal and Inspectio Property adjustme Processin preparati purchaser from ge lending the ender and a bo

rest rate can in cap, an interes n interest cap rest rate can inc

ease over a tw

tgage loan amo

n public record

he life of the loa

purchase of a p nclude but are

harges

rch and title ins mmissions d recording fee

n and survey fe taxes and othe ents ng and docume on fees m obtaining a c property itself s orrower for a lo crease. A cap st cap, a life-of-is a limit on the crease over the welve-month pe

ount for a spec

s.

an. See also: o

(28)

co-mortgag One with condominiu An sha conforming A lo Cor See constructio A s adv the consumer h A d mo conventiona A m Hou Adm convertible An poin co-signer A p own covenants Rul CRV See curtailments The befo or e who is individ h one or more um individually ow are ownership o g loan

oan that confor rporation (FHL e also: non-con n loan hort-term loan vances funds to borrower mus handbook on a isclosure requi rtgage (ARM). al loan mortgage loan t using Administ ministration). mortgage adjustable rate nt in the loan te person who is o nership in the p es and restrict e: certificate of s e borrower's pr ore it is due ma

dually and joint borrowers. See

wned unit within of common are rms to Federal MC) guidelines nforming loan. financing impr o the borrower t obtain perma adjustable rate

ired by the fede

that is not insur ration (FHA) or e mortgage (AR erm. obligated to rep property. See a ions governing reasonable va rivilege to make ay incur a pena tly obligated to e also: co-signe n a multi-unit bu eas such as gro

National Mortg s. rovements to re as needed wh nent financing e mortgages ( eral governme red, guarantee r Rural Econom RM) that allows pay a mortgage also: co-mortga

g the use of pro

alue. e payments on alty if so specif repay a mortg er. uilding where o ounds, parking gage Associatio

eal estate, such ile construction or repay the co (C.H.A.R.M.) nt to be given t ed or funded by mic Community s a borrower to e loan should th agor. operty. a loan's princi fied in the mort

Go to Top

age loan and s

others or the Co facilities and te on (FNMA) or F h as the buildin n progresses. U onstruction loa to any borrowe y the Veterans A y Development o switch to a fix he borrower de

pal before they gage's prepaym shares ownersh ondominium O ennis courts. Federal Home ng of a new hom Upon completio an in full. er applying for a Administration t (RECD) (form ed-rate mortga

efault but who d

y are due. Payi ment clause.

hip of the prope

Owners Associa

Loan Mortgage

me. The lender on of the const

an adjustable r

(VA), the Fede erly Farmers H

age at a specifi

does not share

(29)

- D - debt Mo debt-to-inco The VA deed The deed of trus A d adv the Department The discount po A p the down paym The equ amo due-on-sale A c loan duplex A d - E - earnest mon A d inte easement ney owed to re ome ratio e ratio between loans) or gross e legal docume st ocument, used vantage of a de borrower defa t of Housing a e U.S. governm oints percentage of th loan amount; f ent e difference be uity. Typically it ount secured b e clause in a mort n if the propert welling divided ney eposit in the fo ends to go throu epay someone. n a borrower's m s monthly inco

ent that transfer

d in many state eed of trust is th

ult on the loan

and Urban Dev

ment agency th

he loan amoun for example, tw

tween the purc t comes from c by assets.

tgage or deed y is sold (subje

d into two units

orm of cash or ugh with the pu

monthly payme me (convention

rs the ownersh

es in place of a hat the trustee

.

velopment (HU

at administers

nt paid to the le wo points on a

chase price and cash savings, b

of trust allowin ect to the terms

.

a note given to urchase of a pr

ent obligations nal loans).

hip of real prope

mortgage, hel does not have

UD)

FHA, GNMA a

nder to buy do $100,000 mort

d mortgage am but it can also b

g a lender to re s of the security Go to Top o a seller by a b roperty. divided by his

erty from one p

d by a trustee e to go to court

and other housi

own the interest tgage is $2,000

mount. The dow be a gift that is

equire immedia y instrument).

buyer as good

or her net effe

party to anothe pending repay to proceed wit ing programs. t rate. Each po 0. wn payment bec not to be repai ate payment of faith assurance ctive income (F r.

ment of the loa h foreclosure s

oint is one perce

comes the prop d or a borrowe

f the balance o

(30)

The line Equal Credi A fe nat righ equity The escape clau A p as t escrow Mo insu - F - fair market v The sam Fannie Mae Nic Federal Hom A q sell Federal Hou An insu mo they paid Federal Nat A p ma org

e right one part es.

it Opportunity

ederal law proh ional origin, ag hts under the C e value of a pro use provision allowin the ability of th

ney placed wit urance through

value

e price a prope me area.

kname for Fed

me Loan Mortg uasi-governme mortgage loan using Adminis agency within ures residentia rtgages availab y are limited by d at closing, as ional Mortgag private corporat ny of the guide anization is to ty has in regard y Act hibiting lenders ge, marital statu Consumer Cred

operty beyond

ng one party o e buyer to obta

h a third party f hout the year.

erty can realistic

deral National M gage Corpora ental, federally-ns. FHLMC set stration (FHA) the Departmen l mortgage loa ble to homeow y loan amount. s well as an an ge Association

tion that acts a elines for conve

make mortgag

d to the propert

s and other cred us, receipt of p dit Protection A

any liens again r more to canc ain financing w

for safekeeping

cally sell for, ba

Mortgage Asso ation (FHLMC o -sponsored org ts many of the nt of Housing a ns made by pr ners with low o FHA mortgage nual fee of 0.5 n (FNMA or Fa s a secondary entional mortga ge money more ty of another, s

ditors from disc ublic assistanc Act.

nst it. Also refe

el all or part of within a specifie

g either for fina

Go to Top

ased upon com

ciation (FNMA

or Freddie Ma

ganization that guidelines for c

and Urban Deve rivate lenders. O or moderate inc e insurance req percent of the annie Mae) market investo age loans, as d e affordable and

such as the righ

crimination bas ce or because a rred to as own f the contract if d period. al closing on a mparable selling ). ac) acts as a seco conventional m elopment that s One of FHA's o come. FHA loa

quires a fee of loan amount a or to buy and s does FHLMC. T d more availab ht of a public u sed on race, co an applicant ha er's interest. certain events property or for g prices of othe ondary market mortgage loans sets underwriti objectives is to ns may be high 1.5 percent of added to each ell mortgage lo The major purp ble.

tility company

olor, sex, religio as exercised hi s fail to happen payment of tax er properties in investor to buy , as does FNM ng standards a help make affo h loan-to-value

(31)

The dea FHA See fifteen-year A lo 30-fixed-rate m A m flood insura A fo dam if re loca age FNMA See Freddie Mac Nic - G - gift A s pro Ginnie Mae Nic good faith e The day Governmen A g loan graduated p A fi gra rem e maximum for ath of the owne

e: Federal Hou

mortgage

oan with a term year mortgage

mortgage

mortgage whos

ance

orm of insuranc mage. The Fed eal estate to be ated in a SFHA ents can assist

e: Federal Nati

c

kname for Fed

um of money, fit religious org

kname for Gov

estimate e estimate on c ys of applying f nt National Mo government org ns. payment mortg xed-interest loa dually increase maining amortiz m of ownership er, the property

sing Administr

m of 15 years. A e, the amount o

e rate remains

ce that protects deral Flood Disa e used to secur A area, the borr in obtaining flo

onal Mortgage deral Home Loa

including amou ganization, or n vernment Natio closing costs an for a loan. ortgage Assoc ganization that gage (GPM) an with lower p es over a perio zation period.

p, with the righ y goes to the ow ation. Although the m of interest paid constant throu s the owner of aster Protectio re a loan is loca rower must obt ood insurance.

Association.

an Mortgage C

unts from a rela non-profit comm onal Mortgage A nd monthly mo iation (GNMA participates in payments in the d of time and t Go to Top t to occupy a p wner's designa onthly paymen over the life of

ughout the life o

the insured pro n Act of 1973 r ated in a Speci tain and mainta

orporation (FH Go to Top ative or a grant munity organiza Association (G ortgage paymen A or Ginnie Ma the secondary e early years th hen levels off a

property and se ted heirs. Also

nt on a 15-year f the loan is sub

of the mortgag

operty against requires that fe ially Flood Haz ain flood insura

HLMC).

t from the borro ation that does

NMA). nts provided by

e)

y market, secur han in the later at a payment s ell it to a buyer known as fee mortgage is h bstantially less e. losses stemmi ederally-regulat zard Area (SFH ance on the pro

ower's employe not have to be y a lender to th ritizing pools of r years. The am ufficient to pay at any time. Up absolute.

igher than that .

ng from flood ted lenders det HA). If the prope

operty. Most ins

er, a municipal e repaid.

e homebuyer w

f FHA, VA, and

mount of the pa y off the loan ov

(32)

- H - hazard insu A fo as f the home equity A m deb home inspe A th insp tran homeowner A fo com Housing an The housing affo An are housing exp See HUD See - I - income app urance orm of insuranc fire and tornad

property that i y loan mortgage on the bt consolidation ection horough review pection should nsfer of the hom

rs insurance orm of insuranc mmon disasters d Urban Deve e U.S. governm ordability inde

index that indic as. The most w

penses-to-inc e: debt-to-incom e: Housing and proach to valu ce that protects oes. Mortgage s equal at leas e borrower's pr n. w of the physica be completed me is complete ce that protects s. elopment (HUD ment agency th ex

cates what pro well known hou

ome ratio me ratio. d Urban Develo e s the owner of lenders often st to the amoun rincipal residen al aspects and prior to closing ed. s the owner of D) at administers portion of hom using affordabil opment.

the insured pro require a borro nt of the mortga

nce, usually for

condition of a g so that any re

the insured pro

FHA, GNMA a

mebuyers can a ity index is pub

Go to Top operty against ower to maintai age loan. r the purpose o home by a pro epairs or chang operty against

and other housi

fford to buy an blished by the N losses from ph in an amount o of making home ofessional home ges can be com

loss from theft,

(33)

incl income-to-d See index A p inte esta insurance As taxe Also interest The amo interest cap See interest rate The mo - J - joint tenanc See jumbo loan A n Fed udes shopping debt ratio e: debt-to-incom published intere erest rate on loa

ablish rates on a part of PITI, es. o see: homeow e amount of the ount of the mo p e: cap e e simple interes ney. See also:

cy

e: tenancy. onconforming deral Home Loa

g centers, hotel

me ratio. est rate compile

ans closed by adjustable rat the amount of wners insuranc e entire mortga nthly mortgage st rate, stated a Annual Percen

loan that is larg an Mortgage C ls, motels, rest ed from other in savings and lo e mortgages (A the monthly mo ce.

age loan which e payment whic

as a percentag

ntage Rate.

ger than the lim Corporation (FH taurants, apartm ndicators such an organizatio ARMs). ortgage payme

does not inclu ch does not inc

ge, charged by

Go to Top

mits set by the HLMC) guidelin Go to Top ment buildings as U.S. Treas ns. Mortgage le

ent that does n

de the principa clude the princi

a lender on the

Federal Nation nes.

, office space,

ury bills or the enders use the

ot include the p

al. Also, as a p pal, taxes, and

e principal amo nal Mortgage A etc. monthly avera e index figure to principal, intere

(34)

- K - key lot Rea - L - lien A c hav life-of-loan See liquidity The loan discou See loan origina See loan-to-valu The app lock-in The fee al estate deem claim against a ve include a tax cap e: cap. e ease with wh unt e: points. ation fee e: origination fe ue ratio (LTV) e relationship, e praised value. F e guaranty of a for locking in a ed highly valua property for th x lien for overd

ich an asset ca ee. expressed as a For example, a a specific intere an interest rate able because o e payment of a ue taxes or a m an be converte a percentage, b a $75,000 loan

est rate and/or p e. of its location. Go to Top a debt. A mortg mechanic's lien d into cash. between the am on a property a

points for a spe

Go to Top

gage is a lien; o n for unpaid deb

mount of the pr appraised at $ ecific period of other types of li bt to a subcont roposed loan a 100,000 is a 75 time. Some le iens a property tractor. nd a property's 5% loan-to-valu

nders will char y might

s ue ratio.

(35)

- M -

maintenance costs

The cost of the upkeep of the house. These costs may be minor in cost and nature (replacing washers in the faucets) or major in cost and nature (new heating system or a new roof) and can apply to either the interior or exterior of the house.

margin

The amount a lender adds to the index of an adjustable rate mortgage to establish an adjusted interest rate. For example, a margin of 1.50 added to a 7 percent index establishes an adjusted interest rate of 8.50 percent.

market value

The price a property can realistically sell for, based upon comparable selling prices of other properties in the same geographical area.

modification

A change in the terms of the mortgage note, such as a reduction in the interest rate or a change in maturity date.

mortgage

A legal instrument in which property serves as security for the repayment of a loan. In some states, a deed of

trust is used rather than a mortgage.

mortgage banker

A lender that originates, closes, services and sells mortgage loans to the secondary market.

mortgage broker

An intermediary between a borrower and a lender. A mortgage broker's expertise lies in helping borrowers find financing that they might not otherwise find themselves.

mortgage insurance

Money paid to insure the lender against loss due to foreclosure or loan default. Mortgage insurance is required on conventional loans with less than a 20 percent down payment. FHA mortgage insurance requires a payment of 1.5 percent of the loan amount to be paid at closing, as well as an annual fee of 0.5 percent of the loan amount added to each monthly payment.

mortgage interest

The interest rate charge for borrowing the money for the mortgage. It is used to calculate the interest payment on the mortgage each month.

mortgage term

The length of time that a mortgage is scheduled to exist. Example: a 30-year mortgage term is for 30 years.

mortgagee

The lender.

mortgagor

The borrower.

(36)

- N - negative am A s The amo non-assump In a app non-conform A lo Mo See note A s - O - open-end m A m See origination The in p mortization ituation in whic e unpaid intere ount of the mo ption clause a mortgage con proval of the len

ming loan

oan that does n rtgage Corpora e also: conform igned docume mortgage mortgage allowi e also: closed-e fee e amount charg points. ch a borrower i st is added to t rtgage. ntract, a statem nder. not conform to ation (FHLMC) ming loan. nt that acknow

ing the borrowe

end mortgage. ged by a lende

s paying less in the loan's princ

ment that prohib

Federal Nation guidelines. Ju wledges a debt a er to receive ad r to originate a nterest than wh cipal. The borro

bits a new buye

nal Mortgage A mbo loans are

and shows the

Go to Top

dvances of prin

nd close a mor

Go to Top

hat is actually b ower may end

er from assumi

Association (FN nonconformin

e borrower is ob

ncipal from the

rtgage loan. Or being charged up owing more ng a mortgage NMA) or Federa g. bligated to pay lender during rigination fees for a mortgage e than the origin

e loan without t

al Home Loan

it.

the life of the lo

are usually exp e loan.

nal

he

oan.

(37)

- P - payment ca See P&I Abb PITI Abb PITIO Abb points Cha exa rate pre-qualifica Ten the prime rate The principal The mon private mor See property ap See property tax The prorate To ap e: cap. breviation for p breviation for p breviation for p arges levied by ample, two poin e. Points can a ation ntative establis borrower's ass e interest rate c e amount of the nthly mortgage rtgage insuran e: mortgage ins ppraisal e: appraisal. x e amount which proportionally d

principal and int

principal, intere principal, intere y the lender ba nts on a $100,0 lso include a lo hment of a bor sets, debts, inc

commercial ban

e entire mortga e payment whic

nce (PMI)

surance.

h the state and

divide amounts terest.

st, taxes and i

st, taxes, insur

sed on the loan 000 mortgage e oan origination

rrower's qualific come, employm

nks charge the

age loan, not co ch does not inc

d/or locality ass

s owed by the b

nsurance.

rance and othe

n amount. Eac equals $2,000.

fee, which is u

cation for a mo ment status and

eir most creditw

ounting interes clude the intere

sesses as a tax

buyer and the s

Go to Top

er monthly non

h point equals Discount point usually one poin

ortgage loan am d credit history. worthy custome t. Also, as a p est, insurance, x on a piece of seller at closing -housing costs one percent of ts are used to nt. mount of a spec . ers.

art of PITI, the and taxes.

property.

g.

s.

f the loan amou buy down the i

cific range, bas

amount of the unt; for

nterest

(38)

- Q - qualification As hist - R - rate cap See RESPA Abb cos reverse ann A ty the RHCDS Rur right of first The right of resc The tran day the esta the rollover The bor bor pro Rural Housi A fe n determined by tory, employme e: cap. breviation for th sts at applicatio nuity mortgage ype of mortgag home is used

ral Housing and

t refusal e right to purch cission e right to back o nsaction. When ys following sig borrower mus ate or to refina existing loan. e process by w rrower's file is d rrower and obta cess is called a

ing and Comm

ederal agency

a lender, the a ent status, asse

he Real Estate on and once ag e ge loan in which as security for d Community S ase a property out of a transa n a borrower's ning of the loa t be refunded u nce a loan und

which a construc delivered to Ba ains funds for t

a rollover.

munity Develo

that administer

ability of the bo ets, debts and

Settlement Pro gain prior to clo

h the lender ma the loan. Service y under conditio ction, given au principal dwelli n documents to upon rescission der the same te

ction loan beco nk One Mortga he tax and insu

opment Servic rs mortgage loa orrower to repa income. Go to Top ocedures Act. osing. akes periodic p

ons and terms

tomatically by ing is going to s o rescind or ca n. The right to erms and condi

omes a mortga age Loan Servi urance escrow

e

ans for buyers

y a mortgage l

This act allows

payments to the

made by anoth

law to the borr secure a loan, ancel the transa rescind does n itions where no

ge. At the end icing Dept. Prio s, a final title p

in rural areas.

oan based on t

s consumers to

e borrower. Th

her buyer and a

rower in a real e the borrower h action. Any and not apply to loa

o additional fun

of the construc or to delivery, C olicy and home

the borrower's

o review settlem

e borrower's e

accepted by the

estate purchas has three busin d all money pai ns to purchase nds will be adde

(39)

- S - second mor A lo secondary m A m prim servicing The and settlement c See survey A p any - T - tax deed A w tax savings The mo taxes As and rtgage

oan that is junio

market market compris mary lenders a e responsibility d insurance, as costs e: closing costs physical measu y buildings as w written documen e deduction a ta ney that the ho

a part of PITI, d insurance. or to a primary ing investors li nd resell them of collecting m s well as keepin s. rement of prop well as easeme nt conveying tit axpayer can ta omeowner is no the amount of or first mortga ke GNMA, FHL to other invest monthly mortga ng the borrowe perty done by a ents, rights of w tle to property

ake on their tax ot required to p the monthly mo ge and often h LMC and FNMA tors. ge payments a er informed of a a registered pro way, roads, etc

Go to Top

repossessed b

x form for intere pay the governm

ortgage payme

as a higher int

A, who buy larg

and properly cr any changes in ofessional show . by the governm est paid on a ho ment in taxes b

ent which does

erest rate and

ge numbers of

editing them to the status of th

wing the dimen

ment due to defa

ome mortgage

because he or

not include the

a shorter term

f mortgages fro

o the principal, he loan.

nsions and loca

ault on tax pay

(40)

tenancy title A fo title insuran A p the trust deed See Truth In Len The to h - U - underwriter A p hist Uniform Set A s clos utility costs Per joint ten tenancy can sell w death of tenancy survivors tenancy tenancy ormal documen nce policy issued by title search. Th e: deed of trust nding Act e Truth In Lend homebuyers wi r professional wh tory, employme ttlement State tandard docum sing which mus

s

riodic housing c

nancy - equal o by the entiret

without the con either party. in common - ship. in severalty -at will - a licen nt establishing y a title insuran he cost of title t.

ding Act require thin three work

ho approves or ent status, asse

ement

ment prescribed st be supplied t

costs for water

ownership of pr

ties - ownershi

nsent of the oth

equal ownersh ownership of p nse to use or o ownership of p nce company in insurance may es lenders to di king days of the

denies a loan ets, debts and

d by the Real E to both buyer a

r, electricity, na

roperty by two ip of property o her and the pro

hip of property

property by one occupy a prope

property.

nsuring the purc y be paid for by

isclose the Ann e loan applicat Go to Top to a potential h other factors s Estate Settleme and seller.

atural gas, heat

or more parties only between h operty is owned

by two or more

e legal entity o erty at the will o

chaser against y the buyer, the

nual Percentag ion.

homebuyer bas such as loan gu

ent Procedures

ting oil, etc.

s, each with the usband and wi d by the survivo

e parties withou

r a sole party. of the owner.

t any losses res e seller or both.

ge Rate and oth

sed on the hom uidelines.

s Act containing

e right of surviv ife in which nei or in the event

ut the right of

(41)

- V - VA loan See variable rate See Veterans Ad The In g the - W - walk-throug An warranty de A d - X - No e: Veterans Ad e mortgage (V e: adjustable ra dministration e federal agenc general, qualifie loan amount. gh inspection of a eed ocument prote entries for "X". ministration. VRM) ate mortgage. (VA) cy responsible ed veterans ca a property by th ecting a homeb .

for the VA loan n apply for hom

he prospective uyer against a n guaranty prog me loans with n Go to Top buyer prior to c

ny and all claim

Go to Top Go to Top gram as well a no down payme closing on a mo ms to the prope s other service ent and a fund

ortgage.

erty.

es for eligible ve ing fee of 1 per

(42)

- Y - yield The - Z - zoning The des use e rate of earnin e ability of loca signated areas e and others fo ngs from an inv l governments of land. For ex r commercial u vestment. to specify the xample, some a use such as sto

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use of private areas of a neig ores, gas statio

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