Talk the Talk – Know the Mortgage Lingo at Closing

March 28, 2010 by · Leave a Comment

What the heck are they talking about? Many borrowers go through the closing process in a haze, nodding, smiling, and signing through a bunch of noise that sounds like Greek. Even though you may have put your trust in your real estate and mortgage team, it helps to understand some of the terminology so that […]

Top Five Market Factors That Influence Mortgage Rates

March 28, 2010 by · Leave a Comment

Timing the market for the best possible opportunity to lock a mortgage rate on a new loan is certainly a challenge, even for the professionals. While there are several generic interest rate trend indicators online, the difference between what’s advertised and actually attainable can be influenced at any given moment by at least 50 different […]

What’s The Difference Between Interest Rate and Annual Percentage Rate (APR)?

March 28, 2010 by · Leave a Comment

The difference between APR and actual note rate is very confusing, especially for First-Time Home Buyers who haven’t been through the entire closing process before. When shopping for a new mortgage loan, you may notice an Annual Percentage Rate (APR) advertised next to the note rate.  The inclusion of an APR is actually mandated by […]

How Are Mortgage Rates Determined?

March 28, 2010 by · Leave a Comment

Many people believe that interest rates are simply set by lenders, but the reality is that mortgage rates are largely determined by what is known as the Secondary Market. The secondary market is comprised of investors who buy the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or […]

What’s My Debt-to-Income (DTI) Ratio?

March 28, 2010 by · Leave a Comment

Debt-to-Income (DTI) is one of the many new mortgage related terms many First-Time Home Buyers will get used to hearing. DTI is a component of the mortgage approval process that measures a borrower’s Gross Monthly Income compared to their credit payments and other monthly liabilities. Debt-to-Income Ratios are designed to give guidance on acceptable levels […]

Calculating Loan-to-Value (LTV)

March 28, 2010 by · Leave a Comment

Understanding the definition of Loan-to-Value (LTV), and how it impacts a mortgage approval, will help you determine what type of loan amount and program you may qualify for. Since the LTV Ratio is a major component of getting approved for a new mortgage, it’s a good idea to learn the simple math of calculating the […]

Top Mortgage Terms To Know

March 22, 2010 by · Leave a Comment

While most mortgage web sites offer a glossary containing hundreds of real estate and lending related terms, we wanted to highlight the top terms that most borrowers will hear several times throughout the approval and home buying process.  Understanding the “Shop Talk” between the various industry professionals that you’ve assembled on your team will hopefully […]