MortgageTerms

• Escrow - That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due.
• Loan to Value Ratio (LTV) = Amount of Loan / The cost or value of the property

  Conventional loans with an LTV of greater than 80% and most FHA loans generally require mortgage insurance.

• TIL (Truth in Lending) - shows cost of credit at a yearly rate along with the principle and interest portion of payment and breakdown of closing costs.
• Prepaids - property expenses paid in advance, and usually prorated at the time of closing to help setup your escrow account.
• Fannie Mae -A privately owned section of the secondary mortgage market. It adds liquidity to the mortgage market by investing in home loans throughout the country; specific guidelines must be met on a loan for us to sell it to Fannie Mae.
• Origination fee - a fee paid to a lender for processing a loan application that is a percentage of the mortgage amount.
• Discount point - a point (1% of the loan amount) paid to the lender at closing to permanently buy down or lower the interest rate. It is usually a percentage of the loan amount and can sometimes be paid by the buyer or seller.

Regulation E Disclosure