-
1003 Form
Commonly used mortgage loan application developed by Fannie Mae. This is also sometimes called the Uniform Residential Loan Application. Form 1003 Resources Uniform Residential Loan Application Form 1003 PDF Download Redesigned Form 1003 PDF Download – Borrower Information Redesigned Form 1003 PDF Download – Lender Information Redesigned Form 1003 PDF Download – Additional Borrower Unmarried…
-
5/1 Adjustable Rate Mortgage
A 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a mortgage loan where “5” is the number of years your initial interest rate will stay fixed. The “1” represents how often your interest rate will adjust after the initial five-year period ends. The most common fixed periods are 3, 5, 7, and 10 years…
-
Ability-to-repay rule
The ability-to-repay rule is the reasonable and good faith determination most mortgage lenders are required to make that you are able to pay back the loan. Ability-to-repay rule Resources What is the ability-to-repay rule? Why is it important to me? Requirements of Ability to Repay Mortgage Rules on “Ability to Repay” Updated Ability-To-Repay and Qualified…
-
Acceptance
A verbal or written acceptance of an offer to buy a home, made from the seller to the buyer. Mortgage Acceptance Resources What are your chances of mortgage approval? How to Get a Mortgage Preapproval 5 Things You Need to Be Pre-approved for a Mortgage
-
Acre
A land measurement commonly used in U.S. property negotiations. One acre equals 43,560 square feet.
-
Adjustable rate mortgage, ARM
A type of loan for which the interest rate can change, usually in relation to an index interest rate. Your monthly payment will go up or down depending on the loan’s introductory period, rate caps, and the index interest rate. With an ARM, the interest rate and monthly payment may start out lower than for…
-
Amortization
Amortization means paying off a loan with regular payments over time, so that the amount you owe decreases with each payment. Most home loans amortize, but some mortgage loans do not fully amortize, meaning that you would still owe money after making all of your payments. Some home loans allow payments that cover only the…
-
Amount Financed
It means the amount of money you are borrowing from the lender, minus most of the upfront fees the lender is charging you. Amount Financed Resources Amount Financed FAQs
-
Annual Income
Annual income is a factor in a mortgage loan application and generally refers to your total earned, pre-tax income over a year. Annual income may include income from full-time or part-time work, self-employment, tips, commissions, overtime, bonuses, or other sources. A lender will use information about your annual income and your existing monthly debts to…
-
Annual Percentage Rate (APR)
An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate. Annual Percentage Rate…