Loan Modification Glossary
you
know what a mortgage, how it works and what to watch. But if you go to the help of words ask your lenders to make as much sense as alien banter. That makes Loan Modification ; process as confusing for many homeowners, and so many of them simply do not give up.
But you need not be a financial expert to make informed decisions. Knowledge of credit and industrial credit changes can help you better understand your situation and knows exactly what is meant by your creditors. Below is a list of terms you may encounter in a loan modification, and what they mean for you.
amortization : repayment of the loan (typically a mortgage) through the regular part. Payment is determined by the length of the loan principal and interest balance.
Annual interest rate (APR): The total cost of the loan, including interest, mortgage insurance, points and other related costs.
adjustable rate mortgage (ARM): the type of mortgage where the interest rate changes in line with market conditions. This means your payments may increase or decrease from month to Mon Most of the weapons payment cap the amount of growth remaining after a certain level.
debt to income (DTI): The ratio of the amount you pay on your loan total income. Lenders to determine whether you can comfortably pay the loan. The Federal Housing Administration (FHA), mortgage payments should not exceed 29% of monthly income before taxes and total debt (including credit cards and other loans) should not go more than 41%.
act in place of : the case, which is interested in your property to the creditor, as the settlement of your debt. This does not allow you to your house, but it will help prevent charging attention and related costs.
Promotions : the amount of financial interest in your property. This is calculated by the amount you have been on the market value of your home.
fair market value (FMV) : the theoretical price paid for your home given current market conditions. FMV assumes that the buyer and seller are free and have all relevant information for the transaction.
fixed rate mortgage : type of mortgage that you have a fixed interest rate over the life of the loan. This gives you more stability as the borrower, because your payments will remain the same, regardless of market figures.
Foreclosure : the process by which your property is sold and the proceeds go to your lender, so they returned their loss if you default on the loan.
Patience : a contract in which your lender to change your payment plan to help the current and avoid penalty. This can reduce your monthly payments or suspend them for a certain period. Unlike credit change, this is usually temporary and is often used as an option for mitigating losses.
good faith estimate (GFE) : assessment of the total cost of the loan, including the closure of all duties, taxes, creditor, and insurance. All creditors must give you a GFE within three days after installation to obtain a loan.
interest : The percentage added to the standard monthly fee, as a way to get your lender to pay for the use of money.
Interest Only : the structure of the credits you pay only interest for life on credit, and the client pays only after a certain period.
Lien : progress of your lender against your property as a form of security in case of loan default .
credit ratio (LTV) : ratio of the total amount you pay on the loan for the actual price of your home. Higher LTV, the less you put in a deposit.
mortgage banker : firm, which lend to the SMEs sell lenders like Fannie Mae and Freddie Mac.
Mortgage broker : the person or company that acts as an intermediary between the agents, buyers, sellers and mortgage lenders. Brokers are paid a percentage of the amount earned by the lender or the seller. Lenders are legally required to disclose all fees paid to brokers and other parties, so you can be sure that they are not making bribes to your account.
mortgage insurance : insurance, which helps to minimize the loss to your lender, if not cope with the payments. This is typically required for borrowers who make the first payment is less than 20% of the purchase price.
the reduction of principal : type of loan modification, which your lender reduces your principal balance, reducing the monthly payments. Lenders usually offer only to people with severely devalued areas, or if the amount of depreciation is still lower than the costs of the foreclosure of your home.
refinance : a process whereby you out a loan to repay another. Allows you high quality loan terms, enjoy, like a lower interest rate or a more stable structure.
ReSPA : Real Estate Settlement Procedures Act. This law, which requires all creditors to give you an honest assessment (GFE) loan and to disclose all fees. It also gives the right to compensation or even cancel the loan within a reasonable term challenge.
short selling : common alternative to Foreclosures. In a short sale, sell your house at a price below market value and give the proceeds to your creditors as payment for a house. Although it is not possible to keep your house, it is less harmful than your credit redemption.
Teaser Rate : introductory interest rate offered on many mortgages to attract borrowers. After the introductory period, the rate back to normal, increasing your monthly payments for the remainder of the loan.
Teaser Rate: a temporary reduction in the rate of insertion of the loan.
TILA: Truth in Lending Act, also known as the National Consumer Credit Protection Act. This law requires that lenders give you full information about the conditions and the total cost of credit.
Loan Modification Division consists command debt lawyers Change, real estate professionals, and the difficulties analysts. Our lead attorney, Mark R. drag, is an experienced lawyer specializing in
For free consultation call our Loan Modification Lawyer
|