Important Terms You Must Know BEFORE Obtaining A Mortgage

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This report contains a comprehensive list of mortgage terms that may be used during the loan process. By familiarizing yourself with these terms, you will be able to ask questions to your mortgage consultant that could end up saving you money in loan fees and interest over the lifetime of your loan.

Adjustable Rate Mortgage (ARM): Mortgage loans under which the interest rate is periodically adjusted to more closely coincide are agreed to at the inception of the loan.

Alternative Documentation: The use of pay stubs, W-2 forms, and bank statements in lieu of Verifications of Employment (VOE) and Verifications of Deposit (VOD) to qualify a borrower for a mortgage.

Amortization: The systematic and continuous payment of an obligation through installments until the debt has been paid in full.

Annual Percentage Rate (APR): A term used in the Truth-in-Lending Act to present the percentage...

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