Refinance Riddles
A loan that replaces your existing mortgage loan with a new loan than may have a lower rate, shorter term, both.
What is limited cash-out refinance?
This four-letter acronym represents a widely used credit scoring system.
What is FICO?
This process determines the market value of a property.
What is an appraisal?
This type of mortgage has a consistent interest rate throughout the life of the loan.
What is a fixed-rate mortgage?
These types of mortgages have interest rates that can change periodically.
What are adjustable-rate mortgages?
The value of your home minus the outstanding mortgage balance is known as this.
What is home equity?
These are the three main credit bureaus.
What is Experian, Equifax, and TransUnion?
The legal document conveying the conditional right of ownership on a property.
What is a deed of trust?
The percentage of a loan amount charged by a lender as compensation for granting a loan.
What is the interest rate?
The maximum allowable interest rate that a lender can charge on a loan.
What is the ceiling?
The document that details the terms and costs associated with refinancing.
What is the Loan Estimate?
The term for the maximum amount of credit a lender will extend to a borrower.
What is a credit limit?
The legal document that gives a lender a security interest in a property.
What is a mortgage?
A type of mortgage that doesn't require a down payment and is often aimed at veterans.
What is a VA loan?
The Federal Reserve's interest rate that influences mortgage rates.
What is the federal funds rate?
The primary goal of refinancing is often to secure a lower one of these.
What is interest rate?
The duration that negative information, like late payments, stays on your credit report.
What is seven years?
The legal right to use and enjoy a property owned by another.
What is an easement?
The ratio of a borrower's monthly housing expenses to gross monthly income.
What is the debt-to-income ratio?
The initial interest rate offered on an adjustable-rate mortgage (ARM).
What is the teaser rate?
This type of mortgage refinancing involves borrowing more than the owed principal to use the surplus for other purposes.
What is a cash-out refinance?
The process of combining multiple debts into a single, more manageable payment.
What is debt consolidation?
The term for the increase in a property's value over time.
What is appreciation?
The amount of money borrowed from a lender to buy a home.
What is the loan amount?
The practice of paying a higher upfront amount to reduce the overall interest rate on the mortgage.
What are discount points?