Conversion Option
The option to convert an ARM to an FRM at some point during its life.
Popular Mortgage Terms
The amount the borrower owes at maturity. ...
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 maximum allowable ratio of loan-to- value (LTV) on any loan program. Generally, these are set by mortgage insurers or by lenders and can range up to 100%, although some programs will ...
The maximum allowable decrease in the interest rate on an ARM each time rate is adjusted. It is usually one or two percentage points. ...
In connection with a home, the value of the home less the balance of outstanding mortgage loans on the home. ...
A biweekly mortgage on which biweekly payments are applied to the balance every two weeks, rather than monthly, as on a conventional biweekly. ...
Requirements stipulated by the lender that the ratio of housing expense to borrower income and the ratio of housing expense plus other debt service to borrower income cannot exceed ...
The most recently published value of the index used to adjust the interest rate on an indexed ARM. ...
Equations used to derive common measures used in the mortgage market, such as monthly payment, balance, and APR. ...
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