A biweekly loan is a mortgage that requires principal and interest payments at two-week intervals. Each payment is exactly half of what a monthly payment would be. Over a year's time, the 26 payments are equivalent to 13 monthly payments, leading to faster amortization than a standard monthly payment mortgage.
A Certificate of Eligibility (COE) issued by the Veterans Administration confirms an individual's eligibility for a VA mortgage loan based on honorable military service.
An FHA Mortgage Loan is a mortgage loan insured by the Federal Housing Administration (FHA). Section 203(b) is the most popular program under FHA.
A GI Loan, also known as a VA Loan, is a mortgage loan provided by private lenders and partially guaranteed by the Veterans Administration (VA) to eligible veterans, service members, and their families. It is designed to offer long-term financing to American veterans or their surviving spouses.
A guaranteed mortgage is a type of home loan in which a third-party organization guarantees repayment to the lender in case the borrower defaults. These guarantees are often provided by government agencies, enhancing the chances of loan approval and potentially offering favorable terms to the borrower.
Home mortgage interest refers to any interest paid on a loan secured by the taxpayer's personal residence, including the principal residence or a second home.
A mortgage assumption is a financial arrangement where a buyer takes over the seller's existing mortgage, continuing to make payments under the same terms.
A mortgage banker is a financial individual or institution that originates, sells, and services mortgage loans. Unlike traditional banks or thrifts which fund loans from deposit accounts, mortgage bankers typically use funds from the sale of the mortgages.
A Mortgage Broker is an intermediary who brings mortgage borrowers and mortgage lenders together but does not use their own funds to originate mortgages. A mortgage broker helps potential borrowers find a lender with the best terms and rates to meet their financial needs. In return for this service, the mortgage broker receives a commission which can be paid by either the borrower, the lender, or both.
A Mortgage Correspondent is an entity or individual who services loans for a fee and plays an intermediary role between borrowers and lenders. This entity may also include underwriting and originating loans.
Mortgage debt refers to the amount of money owed under a mortgage, which is a type of loan used particularly for financing the purchase of real estate.
A Mortgage Insurance Policy is designed to protect lenders and borrowers in mortgage agreements by covering payments in certain situations, such as default or borrower death.
Mortgage Insurance Premium (MIP) is the fee paid by a mortgagor to obtain mortgage insurance on a mortgage loan. This fee can be collected as a lump sum at loan closing, as part of the monthly payment, or both.
Refi, short for refinanced mortgages, refers to the volume of mortgage loans originating from the refinancing of existing debt. This financial process involves replacing an existing mortgage with a new one, typically to achieve better interest rates, reduce monthly payments, or alter loan terms.
A Savings and Loan Association (S&L), also known as a building and loan association, is a financial institution similar to a savings bank, with a historical focus on providing home loans. In recent years, S&Ls have expanded their services to include a wider variety of loans.
A specialized home loan arrangement where the lender is granted a share of the equity in the property, allowing them to participate in the proceeds from its resale.
The Department of Veterans Affairs (VA) is a government agency that provides a wide range of services for eligible veterans, including loans, education benefits, and medical care.
