| Acceleration clause
An acceleration clause in a mortgage allows the lender to demand immediate payment of the entire balance remaining on the note if the borrower misses payments, or if the borrower sells the mortgaged property.
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| Adjustable rate mortgages
An arm, or an adjustable rate mortgage, is a great option, for the home buyer who is looking to pay a lower interest rate at the beginning of their loan.
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| Assumable mortgages
Assumable mortgages allow a buyer to assume a seller's existing mortgage loan instead of obtaining a new one. The buyer simply takes over the seller's existing payments.
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| Escrow accounts
When money is held by one party for another, it is usually placed in an escrow or trust account. For example, if you give a real estate broker a ten-thousand dollar deposit to purchase a house and those funds are placed in an escrow account, the broker does not have the right to use the money for his or her own purpose.
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| FHA-insured loans
The Federal Housing Administration is one of the oldest and largest sources of mortgage assistance available to the general public. FHA loans are for the purpose of encouraging new construction and for helping people who might not otherwise be able to afford to purchase a home.
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| Graduated payment mortgages
A graduated payment mortgage is a mortgage whose payments increase each year for a number of years and then level off. The early payments on the loan are lower even than the amount of interest that is due.
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| Prepayment penalty
A prepayment penalty is a fine charged against you by the lender of your mortgage if you pay off the loan before its life is up. The purpose of the prepayment penalty is to discourage a borrower from replacing his or her existing loan with a new loan if interest rates drop.
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| Qualifying for a mortgage with credit problems
Mortgage loans are the most carefully scrutinized consumer loans. Detailed applications consider income, relative debt ratio, job stability, savings, credit history, and other factors.
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| Refinancing
To refinance your mortgage means to pay off an existing loan with a new loan. The reasons for refinancing can vary. You may choose to refinance in order to use the cash as a loan or you may want a new mortgage because it has a better interest rate and terms.
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| VA-guaranteed loans
V-A loans, are loans guaranteed by the veterans administrations for persons who have served in the armed forces. V-A loans usually require no down payment.
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