Do you recognize these mortgage terms? If you don’t, you should get to know them now. These terms might help you recognize risk in your mortgage loan terms and mortgage process. They will also be beneficial in helping you decide if you are getting the right loan for your situation.
ARM (Adjustable Rate Mortgage) – A mortgage containing an interest rate that, after an initial period, can be changed by the lender. The majority of these contracts handle rate changes by evaluating a pre-determined interest rate index over which the lender has no control.
Due-on-sale clause – A provision of a loan contract that stipulates when the property is sold any outstanding loan balance must be repaid. This prevents the seller from transferring responsibility for an existing mortgage to the home buyer.
Equity grabbing – An unethical type of predatory lending where the loan provider purposely attempts to put the borrower into a loan that will result in a relatively quick default, so that way the lender can grab the borrowers equity.
Good faith estimate – The standard form from a lender that details any and all anticipated settlement...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
