Definition of "Conversion Option"

The option to convert an ARM to an FRM at some point during its life.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Mortgage Terms

A mortgage lender or mortgage broker. ...

The lowest interest rate possible under an ARM contract. Floors are less common than ceilings. ...

A borrower who does not meet the underwriting requirements of mainstream lenders. Sub-prime borrowers pay more than prime borrowers and are sometimes taken advantage of. ...

The period over which the borrower is obliged to make payments. On most mortgages, the payment period is a month but on some it is biweekly. It is not necessarily the same as the Interest ...

Same as term housing expense. The sum of the monthly mortgage payment, hazard insurance, property taxes, and homeowner association fees. Housing expense is sometimes referred to as PITI, ...

Owner financing or seller financing is a trending real estate concept among homebuyers and sellers. The seller reveals in their asset’s advertising or listing if buyers can purchase ...

A derogatory term for lender fees that are expressed in dollars rather than as a percent of the loan amount. ...

A contract provision that adjusts the payment on an ARM periodically to make it fully amortizing. ...

A contribution to a borrower's down payment or settlement costs made by a home seller, as an alternative to a price reduction. ...

Popular Mortgage Questions