No-Change Scenario
On an ARM, the assumption that the value of the index to which the interest rate is tied does not change from its initial level.
Popular Mortgage Terms
Inserting provisions into a loan contract that severely disadvantage the borrower, without the borrowers knowledge, and sometimes despite oral assurances to the contrary. Prepayment ...
USDA loans are a form of government-backed financing for both first-time home buyers and move up buyers looking for a second or third property. These loans have little to do with ...
A payment made after the grace period stipulated in the note, usually 10-15 days. ...
A borrower who doesn't pay. ...
The interest rate that is fixed for some specified number of months or years at the beginning of the life of an ARM. ...
An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house and remit the proceeds to the lender. A short sale is an alternative to ...
A documentation requirement where the applicant's assets are not disclosed. ...
The highest rate possible under an ARM contract; same as 'lifetime cap.' It is often expressed as a specified number of percentage points above the initial interest rate. ...
A facility offered by some lenders to mortgage brokers where de jure the brokers become employees of the lender but de facto they retain their independence as brokers. One of the ...
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