Mortgage Terms

Amortization: When you pay a debt through regular installments, covering both interest and principal.

Asset to close: The amount of cash used for down payment is the asset to close.

Credit Rating: A+ to A is considered to be the best credit rating. FICO scores are generally 620.

B+ to B- General good credit with FICO scores from 581 – 619.

C+ to C-Fair credit with FICO scores from 551-580.

D+ to D- Overall poor credit history with FICO scores from 550 and lower.

Annual Percentage Rate : Total cost of credit in terms of yearly percentage rate.

Closing Costs: The eighty percent loan to value ratio and are 2.5% of the Maximum loan amount, is the closing costs and it varies from lender to lender.

Down Payment: When you pay amount for the purchase of real estate, is called down payment.

Hazard Insurance : The form of cover that the insurance company gives to cover specified losses is the hazard insurance.

Estimated tax:It is the real property tax, which is assessed annually. Annual tax is divided by 12 for the monthly amount.

Foreclosure: When the burrower is unable to pay the amount to the lender, the lender then in turn and take hold of the property or in other word takes ownership of the property.