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Guaranteed by the Department of Veterans Affairs, this mortgage is for eligible veterans and service members
What is a VA loan?
This number reflects your risk as a borrower and credit history.
What is a Credit Score
This is what you pay each month, typically including principal, interest, taxes, and insurance (often called PITI)
What is a Monthly Mortgage Payment
This is a legal ownership of the property
What is a Title
Replacing your existing mortgage with a new one, usually to get a better rate or terms
What is Refinance
Often for buyers with smaller down payments, this mortgage is insured by the Federal Housing Administration
What is a FHA loan?
A professional estimate of the property's market value
What is an Appraisal
At closing, upfront fees paid to the lender at closing to reduce the interest rate.
You receive this before closing that lists the final terms and costs of the loan
What is a Closing Disclosure
Using your home's equity as collateral, this is a separate type of loan
What is a Home Equity Loan
This mortgage is not insured by the government
What is a Conventional Loan?
A formal review done by a lender indicating how much they're willing to lend you.
What is a Pre-Approval?
When you are purchasing a home, this is the amount of money you pay upfront
What is Down Payment
This protects against problems with the title
What is Title Insurance?
This is the portion of your home you ACTUALLY own
What is Equity
Backed by the U.S Department of Agriculture, this mortgage is eligible for rural and some suburban properties
What is a USDA loan?
This process done by the lender; evaluates your risk and decision whether to approve the loan
What is Underwriting?
These are paid to your local government, often collected monthly as part of the mortgage payment
What are Property Taxes
A legal claim against a property for unpaid debt
What is a Lein
You are taking the difference in cash, after refinancing for more than you owe.
What is Cash-Out Refinance
This mortgage is for an amount that exceeds conforming loan limits set by Fannie Mae and Freddie Mac.
What is a Jumbo Loan?
This estimate is considered informal and will indicate how much you may be able to borrow based on basic financial info
What is a Pre-Qualification?
Mortgage Insurance for FHA loans
What is MIP (Mortgage Insurance Premium)
This is a standardize document you received early in the process showing estimated rates, costs and terms
What is a Loan Estimate
Without taking cash out, you are refinancing to change the interest rate, the term or both
What is Rate and Term Refinance