Your Guide To The Need-To-Know Verbiage Of Home Buying

When you set out to secure a mortgage, it might feel a little like you need to learn a whole new language. While there is new verbiage with which you need to acquaint yourself during the mortgage process, it does not have to be overly complicated or time consumptive to become versed in the lingo. To help get you started, here is a brief guide to the words you need to know now.

• Adjustable Rate Mortgage (ARM): A mortgage that has an interest rate that will change according to a specified market rate over the term of the loan.
• Amortization: Paying off the principle of a loan. When the loan is fully amortized, it is paid off in full.
• Consumer Price Index (CPI): This index measures the change in what consumers are paying for goods and survives to determine the rate of inflation.
• Fannie Mae & Freddie Mac: Mortgage backers that are chartered by the federal government but owned by stockholders. They were designed to purchase and securitize loans for low- to middle-income families.
• Fixed Rate Mortgage (FRM): A mortgage with an interest rate that stays the same for the duration of the loan.
• Home Equity: The amount a home is worth minus the amount left to be paid on the mortgage.
• Underwriting: The process used to decide how much risk a lender takes on when approving a particular mortgage loan.

You deserve to work with a team of experts who can guide you through the complicated language of the mortgage process, making it easy for you to understand. The Ranch & Coast Mortgage Group Inc. in Solana Beach is here for all of your California mortgage needs. Contact us today and get the loan you need with our Quick Application.