Escrow | Commonly Used Mortgage Terms – All Western Mortgage

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All Western Mortgage

• Mortgage Glossary
• Commonly Used Mortgage Terms

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If you are planning to take a mortgage loan, the
application forms cryptic vocabulary consisting
of typical mortgage terminology can make the
process a little difficult for you. Therefore,
here are some commonly used mortgage terms that
you should be aware of
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Adjustable Rate Mortgage ARM is a type of home
loan in which the interest rate changes
periodically on the basis of the standard
financial index.
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Annual Percentage Rate An APR is the
standardized way of estimating or calculating the
cost of a mortgage. It includes interest,
mortgage insurance and certain credit costs.
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Appraisal A report estimating the value of a
property. It is written by a qualified appraiser.
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Balloon Mortgage A type of mortgage that allows
the borrower to make lower monthly payments for a
certain amount of time. After that period gets
over, the borrower has to pay the remaining
amount as lump-sum.
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Balloon Payment The lump-sum payment on the
balloon mortgage.
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Closing costs Closing costs are expenses
incurred by both the buyer and the seller for
transferring the ownership of a home. It
generally includes origination fee, attorney's
fee, taxes, escrow payments, title insurance and
sometimes discount points.
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Collateral Property pledged as security to the
mortgage.
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Down-payment The portion of cost of the home
that you pay upfront.
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Escrow An account controlled by a neutral third
party, which holds the documents and money
involved in a real estate transfer. The funds
remain in the escrow until all the conditions of
the sale are fulfilled.
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Foreclosure The legal procedure by which the
lender can acquire the property if the homeowner
defaults on mortgage payments.
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Good Faith Estimate A GFE is the written
estimate of closing costs. It is provided by the
lender to the homeowner.
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Pre-payment penalty A fee charged to borrowers
who pay their loan early.
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Title Insurance A legal document that guarantees
the title of the property to the homeowner.
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These were some commonly used mortgage terms. To
access the complete mortgage glossary, visit All
Western Mortgage webpage, http//www.awmlending.c
om/mortgage-glossary.php. In case of any further
questions, feel free to call us on 702-850-2790.
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  Since 1981.

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Vegas, NV  89113 Telephone [phone] Fax
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