What is the ‘Down Payment’ in a real estate purchase?
Your down payment is the first payment you make on your mortgage loan.
Learning Lab / Category: Mortgage IQ
Category: Mortgage IQ
What is the ‘Term’ in a mortgage?
A mortgage term indicates the total duration of a mortgage.
How is an ‘Annual Percentage Rate (APR)’ calculated?
The annual percentage rate (APR) estimates the total interest rate you will pay on your mortgage, including any additional lender fees.
The ‘Debt-To-Income (DTI) Ratio’ determines your qualifying ability.
The debt-to-income (DTI) ratio equals your total fixed monthly debts divided by your total monthly gross income.
Property Taxes – How is this calculated, and why is it important?
A tax imposed on a real estate property by the government is called property tax.
Homeowners Insurance – Why is this important in the Loan Process.
Homeowners insurance is the insurance policy that ensures the protection of a home and its belongings from specific damages.
What is an ‘Adjustable-Rate Mortgage (ARM),’ and how is it used?
An adjustable-rate mortgage (ARM) refers to a mortgage with variable interest rates, which change regularly after an initial period.
What is a ‘Fixed-Rate Mortgage’ vs. an Adjustable-Rate Mortgage?
A fixed-rate mortgage keeps the interest rate fixed throughout the loan term.
What does ‘Principal’ mean in a mortgage?
Principal refers to the initial mortgage amount taken against the property you mortgaged.