Robertson Brothers Mortgage Terms ~ Adjustable Rate Mortgage ~ ARM ~ Annual Percentage Rate ~ APR ~ Balloon Mortgage ~ Balloon Payment ~ Bridge Loan ~ Contingency ~ Credit Score ~ Credit Repository ~ Equity ~ Escrow ~ Escrow Account ~ Fannie Mae ~ Federal Housing Administration ~ FHA ~ FHA Mortgage ~ Good Faith Estimate ~ Loan To Value Ratio ~ LTV ~PITI ~ Points ~ Prepaids ~ Prepayment Penalty ~ Private Mortgage Insurance ~ PMI ~ Qualifying Ratios ~ Southeast Michigan New Homes ~ Southeast Michigan Condos ~ Southeast Michigan New Condos ~ Michigan New Homes ~ Michigan Condos ~ New Condos ~ The Links at Fellows Creek ~ The Links at Fellows Creek Canton MI ~ Links of Independence ~ Links of Independence Clarkston ~ Saddlebrook ~ Saddlebrook Plymouth ~ Robertson In Town ~ Robertson In Town Birmingham ~ Cressbrook ~ Cressbrook Franklin ~ Tribute at Wixom Center ~ Brownstones at the Park ~ Brownstones at the Park Grosse Pointe Park ~ The Hamptons ~ The Hamptons Collection ~ The Hamptons Collection Canton ~ Middlesboro ~ Middlesboro at Oakhurst ~ Middlesboro at Oakhurst Clarkston ~ Bloomfield Hills New Homes ~ Bloomfield Hills Condos ~ Bloomfield Hills Condominiums ~ Birmingham New Homes ~ Birmingham Condos ~ Birmingham Condominiums ~ Troy New Homes ~ Troy Condos ~ Troy Condominiums ~ Oakland New Homes ~ Oakland Condos ~ Oakland Condominiums ~ Northville New Homes ~ Northville Condos ~ Northville Condominiums ~ Clarkston New Homes ~ Clarkston Condos ~ Clarkston Condominiums ~ Plymouth New Homes ~ Plymouth Condos ~ Plymouth Condominiums ~ Franklin New Homes ~ Franklin Condos ~ Franklin Condominiums ~ Wixom New Homes ~ Wixom Condos ~ Wixom Condominiums ~ Canton New Homes ~ Canton Condos ~ Canton Condominiums ~ Detroit New Homes ~ Detroit Condos ~ Detroit Condominiums ~ Milford New Homes ~ Milford Condos ~ Milford Condominiums

adjustable-rate mortgage (ARM)
A mortgage that changes interest rate periodically based upon the changes in a specified index.

annual percentage rate (APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).

balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.

bridge loan
A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold.

contingency
A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

credit score
A numerical rating an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Sometimes called TRW or FICO.

credit repository
An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.

escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

escrow account
The account in which a mortgage servicer holds the borrower's escrow payments prior to paying property expenses.

Fannie Mae
A congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.

Federal Housing Administration (FHA)
An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

FHA mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.

good faith estimate
An estimate of charges which a borrower is likely to incur in connection with a settlement.

loan to value ratio (LTV)
The ratio of the amount of your loan to the appraised value of the home. The LTV will affect programs available to the borrower and generally, the lower the LTV the more favorable the terms of the programs offered by lenders.

PITI
Principal, interest, taxes and insurance--the components of a monthly mortgage payment.

points
Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan.

prepaids
Those expenses of property which are paid in advance of their due date and will usually be prorated upon sale, such as taxes, insurance, rent, etc.

prepayment penalty
A charge imposed by a mortgage lender on a borrower who wants to pay off part or all of a mortgage loan in advance of schedule.

private mortgage insurance (PMI)
Insurance provided by nongovernment insurers that protects lenders against loss if a borrower defaults. Fannie Mae generally requires private mortgage insurance for loans with loan-to-value (LTV) percentages greater than 80%.

qualifying ratios
The ratio of your fixed monthly expenses to your gross monthly income, used to determine how much you can afford to borrow. The fixed monthly expenses would include PITI along with other obligations such as student loans, car loans, or credit card payments.



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