Dictionary for Home Mortgage Terms: Why Should You Use It?

Mortgage Knowledge is Homeowner Power

Buying a home through securing a mortgage loan might appear to be a difficult task, particularly when you come across so many types of mortgage loans. By understanding mortgage terminology you will avoid the costly mistakes that so many Homeowners have made and who now find themselves in need of some serious financial help and mortgage assistance. But by educating yourself with just the basics you will empower yourself with the ability to find the most suitable loan option that fits the needs of your unique situation.

To understand home mortgage terms, you should always refer to a dictionary for home mortgage terms, real estate dictionary, mortgage dictionary or financial terms dictionary. A number of them are available online.

Some Important Home Mortgage Terms That You Would Find in a Dictionary for Home Mortgage Terms

Mortgage: A mortgage is a loan secured by a real estate property. In other words a mortgage or Home Loan is a claim or lien against real property provided by the property buyer to the lender as guarantee for the loan taken.

Fixed Rate Mortgage: This is a form of mortgage where the interest rate remains constant for the entire life or term of the mortgage (the repayment term).

Mortgagor and Mortgagee:

• The borrower is termed as the mortgagor
• The lender is known as the mortgagee.

Mortgage Term: The mortgage terms or repayment terms is the number of years or months during which you would pay off your loan at a certain rate of interest. Terms typically vary from 15 to 30 years.

Adjustable Rate Mortgage: This is a type of mortgage where the interest rate does not remain constant and is attached to an index. The rate of this mortgage is modified from time to time according to the upward or downward movement of the index. These ARM mortgages can be switched to fixed rate mortgages.

Amortization: A diminution of a debt through regular payments comprising interest and a portion of principal.

Annual Percentage Rate: This is the true cost of borrowing a mortgage loan, expressed as a yearly rate.

Closing Costs: These are costs that have to be paid along with the purchase price during selling of real estate. Closing costs can consist of title insurance fees, document preparation fees, escrow fees, notary fees, credit report fees and appraisal fees.

Foreclosure: This is a process where the mortgaged property or home is sold due to the borrowers nonpayment, also known as mortgage default, the proceeds are then used to fulfill the mortgage debt obligation. In the world of real estate foreclosure is the repossession process .


Valuable Resource for Homeowners...

I have found a helpful Homeowner resource available on the web that has a wonderful mortgage terminology dictionary available. I have left the link below for those who would like to check it out.

URL: http://www.mortgagefit.com/terminology/