Ray Yenkana - The Hard Working Nice Guy RE/MAX Little Oak Realty
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Mortgage Terms and Definitions

  • Adjustable Rate
    Mortgage (ARM)
    - A mortgage with and interest rate that fluctuates
    according to the movements of a predetermined index. There are several
    types of ARM's, some change quicker than others, but all have a ceiling
  • APR (Annual Percentage
    - A term used in the Truth-in-Lending Act to represent the
    percentage relationship of the total finance charge to the amount of
    the loan. The APR reflects the cost of your mortgage loan as a yearly
    rate. It will be higher than the interest rate stated on the note because
    it includes, in addition to the interest rate, loan discount points,
    fees and mortgage insurance.
  • Consolidation Mortgage
    - Available up to 85% of current appraised value of your home. Good
    credit and provable income are required on any mortgage in this category
    exceeding 70% of the current appraised value on your home.
  • Conventional Mortgage
    - Any mortgage that is not insured or guaranteed by the federal government.
  • Equity - A
    homeowner's financial interest in a property. Equity is the difference
    between the fair market value of a property and the amount still owed
    on the mortgage.
  • Fixed Rate Loan
    - A mortgage in which the interest rate does not change during the entire
    term of the loan.
  • High-Ratio Mortgage
    - Mortgage loans in excess of 80 percent of the loan amount divided
    by the lower of the sales price or appraised value.
  • Interest Rate
    - The fee charged for borrowing money.
  • Line of Credit
    - A line of credit secured by a mortgage on your property.
  • Market Rate
    - The average rate charged by lenders for conventional, fixed-rate loans.
  • Mortgage Life Insurance
    - Standard or reducing term insurance that will payout your mortgage
    in the event of death. Available for single or joint borrowers. Super
  • Mortgagor -
    The borrower giving the lender a lien on property as security for the
    repayment of a loan.
  • Mortgagee -
    The lender that holds the lien on property as security for the repayment
    of a loan.
  • Private Mortgage
    - Insurance paid for by the borrower to insure the lender against default
    in conventional loans.
  • Principal -
    The amount borrowed or remaining unpaid; also, that part of the monthly
    payment that reduces the outstanding balance of a mortgage.
  • Qualifying Ratios
    - Guidelines applied by the lenders to determine how large a loan to
    grant a home buyer.
  • Refinancing
    - The process of paying off one loan with the proceeds from a new loan
    using the same property as security.
  • Reverse Mortgage
    - A special program for the elderly that provides income until death.
    Payment requirements are arranged through the increase in the principal
    amount of the loan.

Commercial & Residential Real Estate Specialist - RE/MAX
Service Areas
RAY YENKANA - The hard working nice guy
Commercial & Residential Real Estate Specialist
Toll Free: 1-866-206-0832
Web: www.rayyenkana.com

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