A mortgage pool is a group of mortgages that are securitized and sold to investors. The mortgages in the pool have similar characteristics, such as credit quality, loan type, and maturity date. Mortgage pools are used by mortgage lenders to manage risk and provide liquidity. What is another name for a mortgage? A mortgage is … Read more
A Good Faith Estimate (GFE) is a standard form that lists basic information about the terms of your mortgage loan. The GFE includes the estimated costs of your loan, such as the closing costs, origination fees, and discount points. The GFE also discloses the projected interest rate, monthly payment, and principal and interest breakdown for … Read more
A down payment is the amount of money that you put towards the purchase of a home. The down payment is the portion of the home’s purchase price that you pay in cash, and it is typically given to the seller at the time of closing. The amount of your down payment will affect the … Read more
A lock period is the length of time for which a lender agrees to keep the interest rate and other terms of a mortgage loan unchanged. The lock period starts when the loan is first approved, and ends when the loan closes. Can you lock in a mortgage rate without a contract? It is generally … Read more
Forbearance is an act of kindness or mercy shown by someone in authority in not exercising their power to punish someone. In the mortgage industry, forbearance is an agreement between a lender and a borrower to suspend foreclosure proceedings for a specified period of time. The agreement may also allow the borrower to make reduced … Read more
If you’re looking for a mortgage with a low down payment, you may be considering a shared appreciation mortgage (SAM). With a SAM, you make a smaller down payment in exchange for giving the lender a portion of the appreciation in the value of your home. SAMs can be a good option for borrowers who … Read more
Alt-A is a type of mortgage where the borrower does not have to provide full documentation of their income and assets. This type of mortgage is often used by borrowers who are self-employed or have income that is not easily verifiable. Alt-A loans typically have higher interest rates and fees than traditional loans. Which of … Read more
A satisfaction of mortgage is a document that proves that a mortgage has been paid in full and that the property owner is now free from the loan. This document is usually recorded with the county recorder’s office. How do you write a mortgage satisfaction? A mortgage satisfaction is a legal document that proves that … Read more
An absolute title is a title to property that is free and clear of any liens or encumbrances. An absolute title gives the holder of the title the right to use and enjoy the property without interference from any other party. Is title Absolute the same as joint tenants? No, title Absolute is not the … Read more
An endowment loan is a type of mortgage in which the borrower uses the equity in their home as collateral for a loan. The loan is typically used for home improvements, medical expenses, or to consolidate debt. The interest rate on an endowment loan is usually lower than the interest rate on a conventional mortgage. … Read more
