![]() |
Online Home Equity Loans: A Basic GlossaryHome equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During the process, you will come across a variety of terms and acronyms. We have gathered together some of the basic terms that you come across during your home equity loan. If you have any questions about any of these terms, make sure to consult with your mortgage lender. Adjustable Rate Mortgage (ARM): This type of mortgage has an interest rate that will change over time. Typically the interest rate will be lower than fixed mortgage products. Amortization: Loan payments that will cover both principle and interest in one payment. Your lender will likely give you an amortization schedule outlining your payment schedule. Annual Percentage Rate (APR): This is the cost of credit on a yearly basis. Appraised Value: An appraiser will determine the value of your home based on experience, market data, and other information. Cap: This is the limit on how much an interest rate can increase over the life of your loan. Closing/Closing Costs: This is the final step in the real estate transaction. This would include the delivery of the deed, signing of the notes, and final disbursement of the funds. There will be various fees associated with a closing, such as attorney fees and taxes, that are called closing costs. Depreciation: An overall loss on a property due to age, physical deterioration, and economic factors. Discount Point: A buyer can pay the lender a set fee for a lower interest rate. This is usually a percentage of the loan itself. Equity: This is the amount of money that you have vested in your home. This can be determined by subtracting the lien amount from the property's value. Equity Loan: A loan or line of credit that is based on the amount of equity that you have in your home. Your home is essentially used as collateral. Fixed Interest Rate: An interest rate that remains constant throughout the life of the loan. A fixed-rate mortgage will have the same interest rate and payments for the length of the loan. Home Equity Line of Credit: Similar to a home equity loan, but you receive a line of credit that you can draw upon at any time. Home Equity Loan: A loan based on the amount of equity you have in your home. Interest: This is the cost for borrowing money. Interest Rate: This is the percentage of the loan amount that you must add to your principle, for the privilege of borrowing money. Loan-To-Value Ratio: This is the ratio between the amount of the loan and the actual value of the home. Some loans can give you up to a 125% Loan-To-Value Ratio. Market Value: This is the price that buyers would be willing to pay for your home, at the present time. This can vary from the actual sale price of the home. PITI (Principal, Interest, Taxes, and Insurance): This is the usual breakdown for mortgage payments. Principal: The amount of your original loan before interest was added. John Ross is a freelance author who writes articles about financial loans including: home equity loans company, online home equity loans, and fixed rate home equity loans. The Loanchbox is a user friendly website designed to inform beginners about home equity loans.
Today's Mortgage, Refinance Rates: May 28, 2023 | Rates Spiked Last Week and Remain High Business Insider The Great Pandemic Mortgage Refinance Boom - Liberty Street ... Liberty Street Economics - Compare Today’s Refinance Rates | U.S. U.S News & World Report Money What is mortgage refinancing and how does it work? Yahoo Finance Today's Mortgage, Refinance Rates: May 21, 2023 | Rates are Flat for now, but Should Drop Later This Year Business Insider How to get a low-cost mortgage refinance Yahoo Finance How to Refinance a Second Home in 2023 Investopedia What Credit Score Is Needed To Refinance a House | Chase Chase News & Stories Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage ... Federal Reserve Bank of New York Monthly Mortgage Payments Could Increase Rapidly if the U.S. ... The Motley Fool Ask Chuck: How can I ever afford a home? The Christian Post Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC How To Remove PMI: A Complete Guide Zing! Blog by Quicken Loans Compare Current VA Loan Rates | U.S. U.S News & World Report Money CFPB: Choosing a Cheaper Mortgage Lender Could Save You ... The Truth About Mortgage How does mortgage refinancing work? CBS News Should I Refinance My Mortgage? - Buy Side from WSJ The Wall Street Journal Here’s how sharply mortgage refinancing has dropped off Yahoo Finance CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post Small Business Loan Refinance Bankrate.com Why Older People Can’t Get New Mortgages The New York Times VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider 11 Home Refinance Loans For Bad Credit (May 2023) BadCredit.org Debt-Ceiling Deal Is Close. Recession And Stock-Market Drop May ... Investor's Business Daily Current 15-Year Refinance Rates Today Business Insider Refinance Closing: An Overview Zing! Blog by Quicken Loans 7 Refinancing Programs for Seniors Total Mortgage Compare Current 30-Year Refinance Rates Business Insider Heloc vs. Cash Out Refinance Credible
|