An Annual Percentage Rate (APR) is the yearly interest generated by a sum that is changed to borrowers or paid to the Investors. Annual Percentage Rate or APR reflects the true cost of Borrowing. APR represents the price to borrow the money. The annual Percentage Rate or APR measures the yearly cost of borrowing money … Read more
A Mortgage Lender is a financial institution or bank that provides and underwrites home loans to borrowers. These Institutions determine whether to approve borrowers for a Mortgage loan or not and they set the rate of interest and loan terms. Mortgage Lenders provide financing to buy, build, or renovate the property. They also refinance the … Read more
A Debt-to-income (DTI) Ratio is the percentage of gross monthly income that goes paying to the monthly debt payments and is used by lenders to determine the borrowing risk. The Debt-to-income (DTI) Ratio is the metric used by creditors to determine the ability of a borrower to pay their debt and make interest payments. DTI … Read more
The Loan-to-value Ratio (LTV) is used in Mortgage Loan Lending to determine the amount necessary to put down in Down Payment and whether a Lender will extend credit to a borrower. LTV represents the proportion of an asset’s value that a lender is willing to provide debt financing against. The lowest Loan-to-value Ratio (LTV) is … Read more
Private Mortgage Insurance (PMI) is a type of Insurance policy that protects lenders against financial loss in the event borrowers default on their mortgage. Borrowers pay the monthly premium to the insurer and the coverage will pay a portion of the balance due to the mortgage lenders in the event they default on the home … Read more
A Graduated Payment Mortgage or GPM is a type of fixed-rate mortgage for which the payment increases gradually from the initial low base level to the higher final level. The purpose of a Graduated Payment Mortgage (GPM) is to allow homeowners to start off with lower monthly mortgage payments to help certain people qualify for … Read more
An Energy-efficient Mortgage or Green Mortgage is a type of Mortgage loan that allows borrowers to purchase an eco-friendly home or make energy-saving improvements to the existing home. Most homeowners spend thousands of dollars a year on energy bills and pay considerable amounts in monthly utility payments. The Energy-efficient Mortgage or EEM Program offers a … Read more
The FHA 203(h) Loans are the specialized FHA Loan Program that offers 100 percent financing to assist disaster victims. This Mortgage Loan is designed for purchasing new properties or reconstructing existing houses after catastrophic Damage. An FHA 203(h) Loan is specially reserved for disaster victims whose principal resistance was destroyed or damaged to the point … Read more
The FHA 203(k) Loan or Rehabilitation Mortgage loan is a type of government-insured mortgage loan that allows borrowers to take out the loan for two purposes including Home Purchase and Home Renovation. An FHA 203(k) Loan is also known as a Mortgage Rehab Loan, renovation loan, or Section 203(k) Loan. These Mortgage Loans can be … Read more
FHA 203(b) Loan Is the Mortgage Loan Program that is developed for first-time homebuyers, buyers with less-than-average credit, and Homeowners who want to refinance their home to pay for renovations. This type of Mortgage Loan is backed by the Federal Housing Administration (FHA) and offers very low down payment options. An FHA 203(b) Loan is … Read more