Mortgage Term Definition

What Does Term Of Loan Mean While the terms APR and interest rate are often used interchangeably. When it comes to various types of loans, APR and interest rate can often be confused for one another — understandably so, as.Bankrate Calculators Mortgage To download the Bankrate Mortgage Calculator & mortgage rates iphone app 2.0 go to About Bankrate, Inc. Bankrate RATE is.

Reverse Mortgage Glossary of Terms. Adjustable Rate: An interest rate that will change during the life of the loan based on an index.. Annuity: An insurance product that pays out an income stream and is often used as part of a retirement strategy. Appraisal: A professional estimate of the value of your home based on the features of the property and comparable sales in the area.

The mortgage note, in which the borrower promises to repay the debt, sets out the terms of the transaction: the amount of the debt, the mortgage due date, the rate of interest, the amount of monthly payments, whether the lender requires monthly payments to build a tax and insurance reserve, whether the loan may be repaid with larger or more.

Definitions. Mortgage amount: Original or expected balance for your mortgage. interest rate: annual interest rate for this mortgage. Term in years: The number of .

A 5 year ARM, also known as a 5/1 ARM, is a hybrid mortgage. A hybrid mortgage combines features from an adjustable rate mortgage (ARM) and a fixed mortgage. It begins with a fixed rate for a specified number of years, but then changes to an ARM with the rate changing every year for the rest of the term of the loan.

Reverse Mortgage Glossary of Terms. Mortgage: A lien on the property that pledges a promise to repay the loan. Mortgage Insurance Premium (MIP): The fee paid by a borrower to HUD or a private insurer for mortgage insurance. It guarantees that the borrower will continue to.

This down payment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ratio (or LTV) is the size of the loan against the value of the property. Therefore, a mortgage loan in which the purchaser has made a down payment of 20% has a loan to value ratio of 80%.

 · The amortization of a mortgage is typically broken down evenly over the length of a mortgage. For example, if you have a 30-year fixed rate mortgage, you may have a monthly payment of $1,500 for each month of the 30 years.