Mortgage Basics

Jump In and Get an Overview of Common Mortgage Terms

A clear understanding of the fundamentals makes every step of your home loan easier. Start with the topics below.

Application Checklist

Applying for a mortgage can feel daunting. A simple checklist of what to compile, complete and acknowledge before applying keeps your file moving and prevents avoidable delays.

Credit

Your credit history is a recorded file of past and current credit used to compile a credit score. Understanding how it works, and how to improve it, directly affects the rate you qualify for.

Closing Costs

A closing cost is a payment required to finalize a home loan, separate from your down payment. Knowing what they cover and how they can be paid helps you budget with confidence.

Appraisals

An appraisal is an estimate of a property's fair market value, required by a lender to ensure the loan amount is not more than the property is worth.

Private Mortgage Insurance (PMI)

PMI protects a lender when borrowers put less than 20% down on a home. It can be removed once you build sufficient equity, understanding the cost helps you plan around it.

Refinance

Refinancing is a common practice used to lower monthly payments, reduce your interest rate, shorten your term or lower your debt-to-income ratio.

Glossary of Terms

Mortgage language can be dense. A plain-English glossary of the most common terms helps you read every document with clarity.

Foreclosure

Foreclosure is the process of a lender seizing a property under the terms of the mortgage contract. Knowing how it works, and how to avoid it, protects your investment.

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