An adjustable-rate mortgage (ARM) is a type of mortgage loan that allows the interest rate to be changed at specific intervals over the maturity of the loan, enabling borrowers to benefit from potentially lower interest rates initially compared to fixed-rate mortgages.
A mortgage loan that permits a new home purchaser to undertake the obligation of an existing loan without altering loan terms. Typically applicable to FHA and VA loans.
The assumption fee is a charge levied by a lender to a buyer who assumes the existing loan on the subject property. It compensates the lender for administrative costs associated with transferring the loan.
A residential mortgage loan eligible for purchase by FNMA (Fannie Mae) or FHLMC (Freddie Mac). These loans typically offer lower interest rates and more favorable terms compared to nonconforming mortgage loans.
A Mortgage-Backed Certificate (MBC) is a type of security that is backed by a collection of mortgages. Investors in MBCs receive periodic payments derived from the interest and principal payments made on the underlying mortgages.
A residential mortgage is a loan secured against a residential property, such as a house or apartment, primarily used for the borrower's personal housing needs. It allows individuals to finance the purchase of a home by gradually paying off the debt over an agreed period.
