(A.R.M.) Adjustable Rate Mortgage- A mortgage loan in which the interest rate is adjusted periodically based on a pre-selected time period and index. 

(A.P.R.) Annual Percentage Rate- This is not the note rate on your mortgage but is a tool to compare different programs and lenders based on not only the note rate but additional items such as PMI and closing cost.

Appraisal- A written analysis of the estimated value of a property prepared by a qualified appraiser

Certificate of Eligibility- A certificate obtained from a Veteran's Administration office which states that the veteran is eligible for a V.A. insured loan.

Closing Costs- Charges associated with the transaction, such as an appraisal, attorney fee, title insurance, credit report, etc.

Closing Statement- The statement which lists the financial settlement between buyer and seller, and also the costs each must pay.

Deed Of Trust- An instrument used in many states in place of a mortgage to secure the payment of a loan.

Department of Veterans Affairs (VA)- An independent agency of the federal government that guarantees mortgages made to eligible veterans.

Federal Housing Administration (FHA)- A division of the Department of Housing and Urban Development. FHA insures mortgage loans made by private lenders. FHA sets standards for underwriting mortgages.

FHA Loan- A loan insured by the FHA to all qualified purchases. There are no borrower income limitations but there are loan amount maximums set by the county.

Fixed Rate Mortgage- A mortgage having a rate of interest which remains the same for the life of the mortgage.

Good Faith Estimate- A breakdown of estimated closing cost, interest rate, and monthly mortgage payment.

Homeowner's Association- An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area.

Homeowner's Insurance- Insurance on your home in the event of fire or damage. It is often referred to as hazard or fire insurance.

Interest Rate- The percentage of an amount of money which is paid for its use for a specified time.

Investment Property- This is property that you do not plan to occupy but are purchasing for rental income or property value appreciation investment.

Primary Residence- This is a property that you will live in most of the time.

Private Mortgage Insurance- Insurance to protect the lender in case the borrower defaults on the loan. Some loan programs require mortgage insurance when the down payment is less than 20%.

Realtor- A designation given to a real estate broker or sales associate who is a member of a board associated with the National Association of Realtors or with the National Association of Real Estate Boards.

Second Home- This is a home that you will occupy a minimum of 14 days per year. The financing interest rates for a second home is the same as a primary residence.

Term- The number of years the mortgage will last.

We have listed the preceding mortgage and real estate terms for your convenience. If you wish to inquire about any terms not listed here please feel free to email us.