Fixed-Price Mortgage: a home loan that have repayments one to remain a comparable on lifestyle of loan just like the rate of interest or any other words try repaired plus don’t change.

Flooding Insurance: insurance policies you to definitely covers people up against loss out of a flood; if the property is situated in a flooding basic, the financial institution will demand ton insurance rates in advance of giving that loan.

Forbearance: a loan provider will get pick not to simply take legal action whenever good borrower is late in making an installment. Usually this occurs when a borrower sets up an agenda you to definitely each party consent brings overdue mortgage repayments state of the art.

Freddie Mac computer: https://paydayloansconnecticut.com/sherman/ Federal Home loan Mortgage Organization (FHLM); a beneficial federally chartered company you to definitely requests domestic mortgage loans, securitizes all of them, and you may deal them to traders; this provides lenders with loans for new homeowners. Called a federal government Backed Enterprise (GSE).

Front Ratio: a percentage comparing an effective borrower’s overall month-to-month pricing to find an excellent family (mortgage dominating and you can focus, insurance coverage, and you can a house fees) so you can month-to-month money before deductions. [Read more…]