Loan Modification Dictionary

You know what a mortgage is, how it works and what watch. But if you ask for help mortgage, your lender to texts about as much sense as strange joke. This makes the process of loan modification to confusion for many homeowners, and why many of them just give up.

But you will not have a financial expert to make informed decisions. A working knowledge of loan modification industry and can help you better understand your situation and know exactly what your lenders average. Here is a list of terms you’ll encounter in a loan modification, and what they mean for you.

: The repayment of a loan (typically a mortgage) through regular payments. Payments are determined by the maturity of the loan principal and interest balances.

(APR): The total cost of the loan, including interest, mortgage insurance, points and other associated costs.

(ARM): A type of mortgage where the interest rate changes based on market conditions. This means your payments may increase or decrease from month to month. Most weapons have a payment cap that the amount of the increase above certain levels is.

(DTI): The report of the amount you paid the loan to your total income. The lenders use to determine and can not easily repay the loan. The Federal Housing Administration (FHA) mortgage payments should not exceed 29% of your monthly income before taxes, and your total debt (including credit cards and other loans) must not exceed 41%.

: The amount of financial interest you have in your home. It is calculated by the amount you still owe the value of your home market.

: a theoretical disclosed to your home under current market conditions. The JVM assumes that the buyer and seller free to act and have all relevant information for processing.

fixed rate mortgage / strong>: A type of mortgage that uses a fixed rate over the life of the loan. This gives you more stability as borrower, your payments remain the same, regardless of market values.

: a process in which your house is sold and the proceeds will go to your lender so they recoup their losses if you default on the loan.

: an agreement whereby the lender reviews your current payment plan to help and avoid foreclosure. It can be to reduce your monthly payments or suspend for a specified period. Unlike the loan modification, it is usually only temporary and is often used as a loss mitigation option.

: An estimate of the total cost of the loan, including all costs of closing, lender fees and insurance. All lenders are required to give you a GFE within three days after applying for a loan.

: A loan structure where you pay interest for the life of the loan and payment of the principal after a period.

: a debt to your lender against your property as a form of security in case of default on the loan.

: The report of the total amount you pay on the loan and the actual price of your home. The higher the LTV, the less you have to put as down payment.

loss reduction / strong>: a process to help borrowers avoid foreclosure and lenders for their losses on delinquent borrowers a minimum. If you fall behind or to request a loan modification, the office of your lender to reduce the loss and deal with your business decisions.

mortgage broker / strong>: A company that sells loans to secondary lenders like Fannie Mae and Freddie Mac.

mortgage broker / strong>: A person or company that mediates between agents, buyers, sellers and lenders. Brokers are paid a percentage of the amount received by the lender or the seller. Lenders are legally obligated to any fees paid to brokers and other parties to disclose, therefore you can be sure that they do not take bribes at your expense.

Mortgage

principal balance reductions

: a type of loan modification where the lender reduces your principal balance reduce your monthly payments. Lenders usually give people what areas decreased significantly, or if the amount they write off is always less than the cost of exclusion of your home.

refinancing

: a process where you repay a loan to another. These can enjoy more like a lower interest rate loan conditions or a more stable structure.

ReSPA

: Real Estate Settlement Procedures Act. This legislation requires that all lenders will give you a good faith estimate (GFE) of the loan and the full cost to state. It also gives you the right to dispute charges or cancel the loan within a reasonable time.

sales / strong>: An alternative to the common shielding. Within a short sale, you sell the house for less than the fair market value, and give the product to your lender for payment for the house. Although it will not let you leave your home, it is less harmful to the creditworthiness of a foreclosure.

: An introductory interest rate offered on mortgages many borrowers to draw. After the introductory period, the rate back to normal, increasing your monthly payments for the remaining loan.

Teaser rates: a temporary reduction of tariffs for a loan box.

Act truth in lending, also known as National Consumer Credit Protection Act. This law requires lenders to give you full information on the conditions and the total cost of the loan.

Loan Modification Department comprises a team of prosecutors loan modification, real estate professionals and analysts difficulties. Our lead attorney, Mark R. Towing is an experienced attorney who specializes in change loan Tila ReSPA violations and cases.
for a free consultation to talk to our Loan Modification Attorney” / a>