What is a mortgage?

Posted on February 11th, 2015 by Jody

A Mortgage (also called a home loan) is a legal contract made between a lender and a borrower that uses property as collateral to secure the loan. The lender can take possession of the property if the borrower fails to pay the prearranged home loan payments.

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What is a mortgage refinance?

Posted on February 11th, 2015 by Jody

occurs when borrower uses the money from a refinanced loan to pay off an existing home loan. Borrowers typically do this to extend their home loan period, apply for a lower interest rate, or to use some money out of their equity.

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What is a home equity loan?

Posted on February 11th, 2015 by Jody

A is a type of loan that allows a homeowner to obtain cash loans based on the present value of their property minus the mortgage amount still left to be paid off. Homeowners often apply for home equity loans to pay for expenses such as home remodeling, debt consolidation, college education, and other long-term investments.

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What is a home equity line of credit or HELOC?

Posted on February 11th, 2015 by Jody

Home equity lines of credit or HELOCs give homeowners access to an open line of credit, where only the outstanding balance accrues interest. HELOCs provide flexibility by allowing borrowers access to money on an as needed basis.

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What is a second mortgage?

Posted on February 11th, 2015 by Jody

A second mortgage is a type of mortgage refinancing that allows you to acquire a second loan on your home in addition to your first home loan.

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What is a reverse mortgage?

Posted on February 11th, 2015 by Jody

Reverse mortgages are loans that allow homeowners to transfer some of their home equity into cash. In contrast to traditional home loan mortgages, reverse mortgages do not require borrowers to repay their home loan until the homeowner no longer lives primarily at that residence, although he or she stills owns the residence.

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What is a mortgage lender?

Posted on February 11th, 2015 by Jody

A mortgage lender is a financial institution that provides prospective homeowners with the funds over a long-term period to pay off their home loan mortgage. Borrowers are required to pay monthly installments to their lender which includes principle, interest, and additional lender fees. Examples, mortgage bankers and mortgage brokers.

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What is the difference between a mortgage broker and a mortgage banker?

Posted on February 11th, 2015 by Jody

A mortgage broker is the middleman who helps match borrowers with lenders based on corresponding needs and standards. Mortgage brokers arrange more the 80% of all transactions between borrowers and lenders, yet mortgage bankers actually finance and distribute the largest portion of home loans compared to all other lenders.

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What is a mortgage principle?

Posted on February 11th, 2015 by Jody

The mortgage principle is the amount of loan money that a homeowner borrows excluding the interest.

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What does APR mean?

Posted on February 11th, 2015 by Jody

Annual Percentage Rate ( APR ) is the percentage used to figure out the total cost of your cash advance loan by taking into account all fees charged by your lender in addition to your loan principle and interest.

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