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A: Why use a Connecticut Mortgage Broker?
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Acorn Home Mortgage works with homeowners from prequalification to closing. Whether you are a First Time Home Buyer in Connecticut or trading up, we will assist you to find the best mortgage product for your specific needs. It is about what you can afford and your monthly payment. We personally meet our clients in CT.

Considering refinancing your Connecticut Mortgage, then let our experienced mortgage professionals evaluate your mortgage and debts to determine if you can save at least a month's worth of salary? Refinancing is all about restructuring your total debt to reduce your total monthly payment.

7/23 and 5/25 Connecticut mortgages
Connecticut mortgages with a one time rate adjustment after seven years and five years respectively.

3/1, 5/1, 7/1 and 10/1 ARMs
Adjustable-rate Connecticut mortgages in which the interest rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.

“A” Credit Loan
Connecticut mortgages for a borrower with a very good credit report and history of employment, often referred to as “vanilla loans”. These Connecticut home loans are very easy to sell into the secondary market such as to the Fannie Mae because they match all the guidelines for these investors. These “A” borrows tend to get the very best rates, those rates which one sees advertised right across America, the ‘”teaser” rates.

”A-minus” Credit Loans
Connecticut mortgages for a borrower with a very good credit report and history of employment, but with up to two 30 day late payments on the mortgage. They may also have a few 60 day late payments on other installment loans, like car payments, in the last year. . These Connecticut home loans are very easy to sell into the secondary market such as to the Fannie Mae because they match all the guidelines for these investors.
The right of the Connecticut mortgagee (lender) to demand the immediate repayment of the Connecticut mortgages loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.

Adjustable rate Connecticut mortgages (ARM)
Connecticut mortgages with an interest rate that changes periodically based on the changes in a specified index.

Abstract Title
A shortened history of a property’s legal status derived from the public records. These abstracts guide lawyers with recorded liens and encumbrances and other information about the property.

Acceleration Clause
A clause in Connecticut mortgages that permits the lender to demand immediate repayment of the total Connecticut home loan if a certain event occurs.

Accrual Rate
The documented annual interest rate applied to a Connecticut home loan. With Adjustable Rate Connecticut Mortgages this interest rate is linked to a market index rate. Some bankers also refer to this as the note rate or the coupon rate as in a bond.

Accrued Interest
The amount of interest that has accumulated on a Connecticut home loan since the last payment was made by the borrower.

Adjusted Basis
The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

Adjustment Date
The date on which the interest rate changes on an adjustable-rate Connecticut mortgages (ARM).

Adjustment interval
On an adjustable rate Connecticut mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index.

Adjustment Period
The time between one rate change and the next, for an adjustable rate Connecticut mortgages (ARM). Typically the adjustment period is 1, 3, 5 or 7 years.

Affordability Analysis
An analysis of a buyer’s ability to afford the purchase of a home. Reviews income, liabilities, and available funds, and considers the type of Connecticut mortgages you plan to use, the area where you want to purchase a home, and the closing costs that are likely.

Agency Closing
Where a lender prefers to have a third party handling the closing on a property purchase. This is a very common type of escrow arrangement where title companies act as the agent for the lender.

Alternative Documentation Loans
These types of Connecticut home loans have almost become the norm whereby less verification and documentation is required by the lender. Most of the time we will only require the most recent pay stubs and W-2 and the lender will verify employment with a simple phone call to your employer.

American Land Title Association (ALTA)
The national association of title insurance companies, charged with the responsibility of laying down rules and procedures and creating standard forms for title abstracts and title insurance policy forms.

The repayment of Connecticut mortgages loan by installments with regular payments to cover the principal and interest.

Amortization Term
The length of time required to amortize the Connecticut mortgages loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate Connecticut mortgage.

Annual percentage rate (A.P.R.)
APR is a measurement of the full cost of a Connecticut home loan including interest and Connecticut home loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of Connecticut home loans.

A form, commonly referred to as a 1003 form (ten-o-three), used to apply for Connecticut mortgages and to provide information regarding a prospective borrower and the proposed security.

A written analysis of the estimated value of a property prepared by a qualified appraiser.

Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

An increase in the value of a property due to changes in market conditions or other causes.

Anything which is connected to, forms part of or relates to the land and which is transferred with the change of title. This could be a physical building such as a garage or farm building like a barn or it may be a right of way, and easement.

Architect’s Inspection Certificate
On new construction this document certifies that the house has been constructed in accordance with the approved specifications and agreed plans. With Connecticut home loans this document is often required before the lender will allow the Connecticut mortgages to close.

Anything of monetary value that is owned by a person. Assets include real property, personal property and enforceable claims against others (including bank accounts, stocks, mutual funds, etc.).

Adjustable-rate Connecticut mortgages in which the interest rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.

ARM Caps
Although an adjustable rate Connecticut mortgages can fluctuate the changes are confined between limits. These limits are referred to as “caps” and control the maximum changes for both the annual or periodic changes and over the full life of the Connecticut home loan. The maximum rate cap is called the ceiling and the minimum rate cap, the floor.

ARM Loan Description
This is the explanation of how an adjustable rate Connecticut home loan works and will give examples of adjustments and worse cases. These can be requested from any lender.

The total accumulated amount owed in principal, interest, taxes and insurance (the PITI) by a delinquent borrower to a lender.

The value that a local taxing authority places on real estate so that a local tax can be levied against the property for a specific purpose.

Annual charges for city or county improvements like sidewalks and sewers or the home owner’s fee in a condominium.

The one to whom a right, title or interest has been transferred for a Connecticut home loan.

The transfer of Connecticut mortgages from one person to another.

Assignment of Rents
A document that can often be included in Connecticut mortgages that transfers all rents and income from the property to the mortgagee.

Assumable Connecticut mortgage
Connecticut mortgages that can be taken over ("assumed") by the buyer when a home is sold. A mortgages is assumable if it does not carry a "due on sale" clause. Assumable mortgages are most typically seen on VA mortgages.

The transfer of the seller's existing Connecticut mortgages to the buyer. Assuming a Connecticut home loan can usually save the buyer money since this is an existing Connecticut mortgages debt, unlike a new Connecticut mortgages where closing cost and new, probably higher, market-rate interest charges will apply.

Assumption clause
A provision that allows a buyer to assume, or take over, the responsibility for the seller's (original borrower's) Connecticut mortgage. The Connecticut home loan does not need to be paid in full by the original borrower upon sale or transfer of the property.

Assumption Fee
The lender's charge for paperwork involved in processing records for a new buyer assuming an existing Connecticut mortgage.

Automated Underwriting System
A way of processing and underwriting Connecticut mortgages. It is a fast way form Connecticut mortgages brokers to obtain an approval for Connecticut mortgages using the internet. The idea is to get an approval from the lender within hours instead of weeks. These automated underwriting systems tend to use a data base of approved loans on which to base their approvals.

Balance sheet
A financial statement that shows assets, liabilities and net worth as of a specific date.

Balloon mortgages
A Connecticut home loan which is amortized for a longer period than the term of the Connecticut home loan. Usually this refers to a thirty-year amortization and a five year term. At the end of the term of the Connecticut home loan, the remaining outstanding principal on the Connecticut home loan is due. This final payment is known as a balloon payment.

"B" Credit Loans
Connecticut mortgages for a borrower that has had some credit problems, a few late Connecticut mortgages payments or too much debt to qualify for a conventional mortgage. Rates and terms will generally be higher than the current market rates. The Loan to Value Ratio on this type of credit usually ranges between 70% LTV and 80% LTV depending on the lender.

Balance Sheet
A statement of financial condition of an individual or a business showing assets, liabilities and net worth as of a given date.

Balloon Payment
The final lump sum paid at the maturity date of a balloon Connecticut mortgage.

The manner in which an individual or business is relieved on the payment of all debts after the submission of all assets to a court-appointed trustee, for the protection of the creditors.
  • Chapter 7 bankruptcy covers liquidation of the assets of a debtor in their order of priority.

  • Chapter 11 bankruptcy allows for a plan of reorganization to provide full or partial payment to all creditors.

  • Chapter 12 covers certain farm bankruptcies.

  • Chapter 13 covers restructuring of the consumer's debts. Fannie Mae and Freddie Mac will allow an individual to apply for a mortgages after the bankruptcy has been discharged for two years.

  • Basis Points
    One-hundredth of 1%. Used to describe the amount of change in yield in mortgages. For example, 1/2 of 1 percent (.50%) equals 50 basis points.

    Bill of Sale
    A written document that transfers title of personal property.

    The document relating to a buyer’s commitment to purchase a home from a seller, subject to certain terms and conditions. This document normally gives a buyer five working days to consult with a mortgages banker and to apply for a loan.

    Biweekly payment Connecticut mortgage
    Connecticut mortgages that requires payments every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required, and they are usually drafted directly from the borrower's bank account. The result for the borrower is a substantial savings in interest.

    Blanket Connecticut mortgages
    Connecticut mortgages covering at least two pieces of real estate as security for the same Connecticut mortgage.

    An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by Connecticut mortgages or a deed of trust.

    Borrower (Mortgagor)
    One who applies for and receives a Connecticut home loan in the form of Connecticut mortgages with the intention of repaying the Connecticut home loan in full.

    A violation of any legal obligation.

    Bridge loan
    A second trust that is collateralized by the borrower's present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as "swing loan."

    A company in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers receive a commission for their services which is normally paid by the lender. Brokers are able to arrange Connecticut home loans and Connecticut mortgages for their clients on a wholesale basis (reduced interest rate), due to the volume of Connecticut home loans they originate for lenders.

    Bundle of Rights
    The rights or interest of a person in a Connecticut property. They are the exclusive rights to own, possess, use, enjoy and dispose of real property.

    Buydown Connecticut mortgage
    A temporary buydown is Connecticut mortgages on which an initial lump sum payment is made to reduce a borrower's monthly payments during the first few years of a Connecticut mortgage. A permanent buydown reduces the interest rate over the entire life of a Connecticut mortgage.

    "C" Paper Loans
    Connecticut mortgages for borrowers that have very little documented income, poor credit or a recent bankruptcy. Interest rates will usually be about 3 to 5% higher than the current rates. The Loan to Value Ratio on this type of Connecticut home loan usually ranges between 65% and 75% depending on the lender.

    Call option
    A provision in the Connecticut mortgages agreement that gives the lender the right to call, or request, the Connecticut mortgages due and payable at the end of a specified period, for any reason.

    A provision in an adjustable-rate Connecticut mortgages (ARM) agreement that limits how much the interest rate or Connecticut mortgages payments may increase.

    Capital Gain
    The taxable profit resulting from the sale of a property.

    Capital improvement
    Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

    Cash Flow
    The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income producing property (CT mortgages payment, maintenance, utilities, etc.).

    Cash on Hand
    Cash held by a borrower that is not verifiable in a bank or other holding institution. This money is very rarely able to be counted as an asset.

    Caps (interest)
    Consumer safeguards which limit the amount the interest rate on an adjustable rate Connecticut mortgages which may change per year and/or the life of the Connecticut home loan.

    Caps (payment)
    Consumer safeguards which limit the amount monthly payments on an adjustable rate Connecticut mortgages may change.

    Cash-out refinance
    A refinance transaction in which the amount of money received from the new Connecticut home loan exceeds the total of the money needed to repay the existing first Connecticut mortgage, closing costs, points and the amount required to satisfy any outstanding subordinate Connecticut mortgages liens. In other words, a refinance transaction in which the borrower receives additional cash that can be used for any purpose.

    Cash Reserves
    Liquid assets (savings, money market funds, etc.) that the borrower retains after making the down payment and paying closing costs for his Connecticut home loan.

    Census Tract
    A geographical area designated by the U.S. Bureau of Census for purposes of identifying the location of a specific property. The Home mortgages Disclosure Act (HMDA) requires lenders report loan application data by the census tract in which the property is located.

    Certificate of Eligibility
    The document given to qualified veterans which entitles them to VA guaranteed Connecticut home loans for homes, business and mobile homes. Certificates of eligibility may be obtained by sending form DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility)

    Certificate of Occupancy
    Written authorization given by a local municipality that allows a newly completed structure to be inhabited.

    Certificate of Reasonable Value (CRV)
    An appraisal issued by the Veterans Administration showing the property's current market value

    Certificate of title
    A statement provided by an abstract company, title company or attorney, stating that the title to real estate is legally held by the current owner.

    Certificate of veteran status
    The document given to veterans or reservists who have served 90 days of continuous active duty (including training time) It may be obtained by sending DD 214 to the local VA office with form 26-8261a (request for certificate of veteran status. This document enables veterans to obtain lower down payments on certain FHA insured Connecticut home loans).

    Chain of title
    The chronological order of the title's transfer from the original owner to the present owner.

    Change Frequency
    The frequency (in months) of payment and/or interest rate changes in an adjustable-rate Connecticut mortgages (ARM).

    An item of personal property such as a lighting fixture.

    Clear title
    A title that is free of liens or legal questions as to ownership of the property.

    Your closer is your contact at Acorn Home mortgages CT. Your closer is responsible for reviewing and clearing your title work and any other legal documentation applicable to your Connecticut mortgage. Once your title is clear and your underwriter has issued a clear to close, your closer will arrange for a closing.

    The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands, also called settlement. Closing costs usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The cost of closing usually are about 3 percent to 6 percent of the Connecticut mortgages amount.

    Closing cost item
    A fee that a homebuyer must pay at closing for a single service, tax or product (ie. origination fees and attorney's fees). Many closing cost items are included as numbered items on the HUD-1 statement.

    Closing Costs
    These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used. Connecticut Mortgages Closing Costs

    Closing statement
    Also referred to as the HUD1, it is the final statement of costs incurred to close on a Connecticut home loan or to purchase a home.

    Cloud on title
    Any conditions found during the title search that adversely affect the title to real estate. Clouds on title usually cannot be removed except by a quitclaim deed or court action.

    A person who signs a promissory note (CT mortgage) along with the borrower. A co-borrower's signature guarantees that the Connecticut home loan will be repaid, because the borrower and the co-borrower are equally responsible for the repayment. Also referred to as a co-maker or co-signor.

    Adjustable-rate Connecticut mortgages with rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds.

    An asset (such as a car or a home) that guarantees the repayment of a Connecticut home loan. The borrower risks losing the asset if the Connecticut home loan is not repaid according to the terms of the Connecticut home loan contract.
    The efforts used to make a delinquent Connecticut mortgages current and to file the notices needed to proceed with foreclosure. .

    Combined Loan to Value (CLTV)
    The combined loan-to-value ratio is the sum of the balance of the loan in first position and all subordinate financing as a percentage of the value of the property.

    The fee charged by a broker or agent for negotiating a real estate or Connecticut home loan transaction. A commission is generally a percentage of the price of the property or Connecticut home loan. .

    An agreement between the lender and borrower, an approval of the Connecticut mortgages to close at a future date subject to specific terms and conditions.

    Commitment Fee
    A fee paid usually at the time an interest rate is locked in. It commits both the lender and borrower to a specific interest rate for a specific time. Some commitment fees are refundable at closing. This fee is also known as the "up front lock-in fee."

    Commitment letter
    A document provided by the lender that details the terms and conditions of the loan approval for the borrower. See Connecticut mortgages Commitment Letter.

    Common areas
    Those portions of a building, land and amenities that are owned (or managed) by a planned unit development (PUD)/condominium project's homeowners association (or a cooperative project's cooperative corporation) and used by all of the unit owners who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc. .

    Another term to describe a Co-borrower.

    Community Home Improvement mortgages loan
    An alternative financing option that allows low to moderate income homebuyers to obtain 95 percent financing for the purchase and improvement of a home in need of modest repairs. The repair work can account for as much as 30 percent of the appraised value.

    Community property
    In some western and southwestern states, a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse. .

    An abbreviation for "comparable properties." Comparables are recently sold properties with traits similar to those of the property being purchased, ie. similar size, in a nearby location, with similar amenities. These properties can be used as a base comparison to help the appraiser determine the approximate fair market value of the property being purchased. .

    Community Reinvestment Act
    Federal legislation to offer Connecticut mortgages in areas historically undeveloped by lenders. This legislation enables lenders to be more flexible in the loan programs they offer low income and minority people.

    Recently sold properties that are used in the appraisal to determine the fair market value of the subject property. These comparable properties are approximately the same size, location and have similar amenities. Also known as "comps."

    Comparative Market Analysis
    A report prepared by a real estate company that shows recent sales prices of comparable homes that are in the neighborhood in which a client wants to purchase or sell a home. This report will also show the prices of properties currently listed for sale in the same neighborhood.

    A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project and the exclusive use of certain limited common areas. When purchasing a condominium, lenders may have specific guidelines for providing a mortgages on a condo. The percent of owner occupied units is always required by the lender. Fannie Mae will allow up to 40% of the units to be non-owner occupied (leased to tenants). It is very important that the percentage of owner occupied units be know by the buyer at the beginning. If the unit has more than 40% of the condos leased, then a portfolio type of lender will have to be used. (A lender who will not sell the mortgages to the secondary market - see also Portfolio Lender). Lenders will also want documentation that the building has substantial financial reserves and a good record of payment as a condo association.

    Condominium conversion
    The changing of a rental property (two or more units) to the condominium form of ownership. Physical changes, as well as paperwork, may be necessary to conform to building and safety codes. .

    Condominium Declaration
    The basic condominium document that must be registered by the original property owner prior to selling the first unit. This document describes each unit, common areas and specifies elements of ownership that permanently govern its operation. Also known as a master deed.

    Conforming Connecticut mortgages loan
    Any Connecticut home loan that meets the criteria and limits set forth by the largest buyers of Connecticut home loans, Fannie Mae and Freddie Mac. .

    Constant Renewal
    An insurance renewal with the premium amount based on the original amount of the loan-not on the outstanding balance.

    Construction Escrow
    A title company pays the contractors for the lender. The title company also collects contractor's affidavits and lien waivers that the law requires. Before each draw of funds, the title company will update the title search to validate that no mechanic's liens have been filed.

    Construction Financing
    A short term loan for financing the cost of construction. The lender will make payments to the builder at intervals as the work progresses, as evidenced through third party inspection certificates of completion.

    Construction loan
    A short term interim Connecticut home loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses.

    Construction Loan Draw
    The partial distribution of construction loan, based on the schedule of payments in the loan agreement.

    Consumer Reporting Agency (or Bureau)
    An organization that handles the preparation of reports used by lenders to determine a potential borrower's credit history. The agency gets data for these reports from a credit repository and from other sources.

    A condition that must be met before a contract is legally binding. For example, homebuyers often include a contingency that specifies that the contract is not binding until they obtain a satisfactory home inspection report from a qualified home inspector.

    Contract sale or deed:
    A contract between purchaser and a seller of real estate to convey title after certain conditions have been met. It is a form of installment sale.

    Conventional Connecticut home loan or Connecticut mortgage
    Connecticut mortgages not insured by FHA or guaranteed by the VA.

    Conversion Clause or Convertibility Clause or Option
    A provision in an ARM allowing the Connecticut home loan to be converted to a fixed-rate at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.

    Convertible ARM
    An adjustable-rate Connecticut mortgages (ARM) that can be converted to a fixed-rate Connecticut mortgages under specified conditions. .

    The transfer of title to real estate from one person to another by a written document such as a deed.

    Cooperative (co-op)
    An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation, which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock. .

    Corporate relocation
    Arrangements under which an employer moves an employee to another location as part of the employer's normal course of business, or under which it transfers a substantial part or all of its operations and employees to another area because it is relocating its headquarters or expanding its office capacity. .

    Cost Approach to Value
    An appraisal method by which the value of a property is calculated by estimating the replacement cost of the improvements, deducting the estimated depreciation then adding the value of the land as estimated by use of the market data approach.

    Cost of funds index (COFI)
    An index that is used to determine interest rate changes for certain adjustable-rate Connecticut mortgages (ARM) plans. It represents the weighted-average cost of savings, borrowings and advances of the 11th District members of the Federal Home loan Bank of San Francisco. .

    In a sales contract negotiation, a new offer made in response to an offer received. The counter-offer terminates the original offer.

    Coupon Rate
    The annual interest rate shown on the face of Connecticut mortgages note.

    A clause in Connecticut mortgages that obligates or restricts the borrower and that, if violated, can result in foreclosure. .

    Covenants, Conditions and Restrictions (CC&Rs)
    These are used to designate restrictions on the use of the land and provide penalties for failure to comply. They are used by subdivider on newly divided areas. They include items such as setbacks and easements. They are usually recorded and disclosed in an investigation of public records.

    An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date. .

    Credit bureau
    An agency that keeps your credit record on file. See also Credit Reporting Agency and Credit Repository. .

    Credit history
    A record of an individual's open and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner. .

    Credit Officer
    A credit officer has the authority to approve or decline a Connecticut home loan. The credit officer uses the documentation that your underwriter collects from you and decides whether or not your Connecticut home loan is approved. See also Underwriting and Underwriter. .

    Credit Rating
    A rating given to a person or business to establish credit worthiness based on present and past financial conditions.

    Credit Report
    A report documenting the credit history and current status of a borrower's credit standing.

    Credit reporting agency
    Company that collects information from several credit repositories, merges all the information and reports it in one form - merged credit report.

    Credit repository
    An organization that gathers, records, updates and stores financial information on an individual's credit history and reports it in one form - in-file credit report.

    Credit Risk Score
    A credit risk score is a statistical summary of the information contained in a consumer's credit report. The most well known type of credit risk score is the Fair Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is highly relative in the credit underwriting process for Connecticut mortgages loan.

    "D" Credit Loan
    A mortgages for a borrower that has no income or job history and a very poor payment history on all debts. If someone is a D Paper candidate he may expect to pay 4 to 6% higher than the current interest rates. The loan to value ratio on this type of credit usually averages between 50% and 70% LTV depending on the individual lender.

    An amount owed to another.

    Debt-to-Income Ratio
    The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.

    The legal document conveying title to a property.

    Deed and Money Escrow
    This type of escrow is used by buyers and sellers. It is used when the buyer does not want to release funds until he is certain he has received title and the seller does not want to give the buyer a deed until he receives the funds. Disbursement of the proceeds is normally not made until the deed is recorded and title is updated to be certain no intervening liens have occurred.

    A deed given by a borrower to the lender to avoid foreclosure proceedings.

    Deed of trust
    In many states, this document is used in place of Connecticut mortgages to secure the payment of a note.

    Deed Restriction
    A limitation placed in a deed limiting or restricting the use of real estate.

    Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a Connecticut mortgage.

    Deferred interest
    When Connecticut mortgages is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the Connecticut home loan balance. See negative amortization.

    Deferred Maintenance
    Repair or maintenance of property that should have been done but has been postponed resulting in physical deterioration of the property.

    Deficiency Judgment
    An amount the borrower must pay if the sale at foreclosure does not raise enough money to pay the balance of the loan.

    Failure to make payments on time. This can lead to foreclosure.

    Department of Veterans Affairs (VA)
    An independent agency of the federal government which guarantees long-term, low-or no-down payment Connecticut mortgages to eligible veterans.

    de minimis PUD
    A planned unit development (PUD) in which the common areas are of minimal value and have little influence on the value of the property.

    Money given in advance to show intention to complete the purchase of a property. See also Good Faith Deposit.

    A decline in the value of property due to wear and tear, adverse changes in a neighborhood, or any other reason.

    Information that must be given to consumers about their financial dealings.

    Discount Point
    Additional charges required by a lender to buy the interest rate to a below-market rate. Each point represents one per cent of the total Connecticut home loan amount.

    Transfer of real estate under a will.

    A list of documents that you will be required to provide when submitting a Connecticut home loan application. See our Required Documents page.

    Down Payment
    Money paid to make up the difference between the purchase price and the Connecticut mortgages amount.

    A provision in Connecticut mortgages or deed of trust that allows the lender to demand immediate payment of the balance of the Connecticut mortgages if the Connecticut mortgages holder sells the home.

    Earnest Money
    Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.

    A limited right to use another's land for a specific purpose which could include the running of utility cables or for gaining access to another property as in a shared driveway.

    Economic Life
    The period over which a property will yield a return on the investment. The time during which a building is considered to be valuable.

    11th District Cost of Funds Index
    This index is the monthly weighted average cost of savings, borrowing and advances of member institutions of the Federal Home Loan Bank of San Francisco. This index usually reacts more slowly in fluctuating markets, adjustments in interest rates tied to this index will lag behind some other market indicators.

    Eminent Domain
    The process by which the government takes private land for public use.

    An unauthorized intrusion of real estate or personal property such as an overhanging roof, tree branches or roots or misplaced fences or walkway.

    A lien or claim to the title to real estate such as Connecticut mortgages or easement.

    End Loan
    Permanent Connecticut mortgages financing secured to payoff a construction loan.

    The VA home Connecticut home loan benefit is called an entitlement (i.e. entitlement for a VA guaranteed home Connecticut home loan). This is also known as eligibility.

    Equal Credit Opportunity Act (ECOA)
    Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.

    The difference between the fair market value and current indebtedness, also referred to as the owner's interest. The value an owner has in real estate over and above the obligation against the property.

    An account held by the lender into which the home buyer pays money for tax or insurance payments. Also earnest deposits held pending Connecticut home loan closing.

    Escrow Disbursements
    The use of escrow funds to pay real estate taxes, hazard insurance, Connecticut mortgages insurance, and other property expenses as they become due.

    Escrow Payment
    The part of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, Connecticut mortgages insurance, lease payments, and other items as they become due.

    E-Z Doc Connecticut Home Loan
    CT Mortgages loans that require less documentation than fully processed loans.

    Fair Housing Act
    Title VIII of the Civil Rights Act of 1968, prohibits discrimination in the sale, rental, or financing of housing and the provision of brokerage services on the basis of race, color, religion, national origin, sex, handicap or familial status. Section 801 (Policy) states: ''It is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States."

    Fannie Mae
    see Federal National Connecticut mortgages Association.

    Farmers Home Administration (FmHA)
    Provides financing to farmers and other qualified borrowers who are unable to obtain Connecticut home loans elsewhere.

    Federal Home Loan Bank Board (FHLBB)
    The former name for the regulatory and supervisory agency for federally chartered savings institutions. Agency is now called the Office of Thrift Supervision

    Federal Home Loan Mortgages Corporation(FHLMC) also called "Freddie Mac"
    Is a quasi-governmental agency that purchases conventional Connecticut mortgages from insured depository institutions and HUD-approved Connecticut mortgages bankers.

    Federal Housing Administration (FHA)
    A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential Connecticut mortgages loans made by private lenders. FHA also sets standards for underwriting Connecticut mortgages.

    Federal National Mortgages Association (FNMA) also know as "Fannie Mae"
    A tax-paying corporation created by Congress that purchases and sells conventional residential Connecticut mortgages as well as those insured by FHA or guaranteed by VA. This institution, which provides funds for one in seven Connecticut mortgages, makes Connecticut mortgages money more available and more affordable.

    Fee Simple
    The most complete form of ownership conveyed for possibly infinite duration. There are no limitations with this type of ownership. Most property is owned fee simple.

    FHA Connecticut home loan
    A Connecticut home loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA Connecticut home loans ($155,250 as of 1/1/96), they are generous enough to handle moderately-priced homes almost anywhere in the country.

    FHConnecticut mortgages insurance
    Requires a fee (up to 2.25 percent of the Connecticut home loan amount) paid at closing to insure the Connecticut home loan with FHA. In addition, FHConnecticut mortgages insurance requires an annual fee of up to 0.5 percent of the current Connecticut home loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.

    The Federal Home Loan Mortgages Corporation provides a secondary market for savings and Connecticut home loans by purchasing their conventional Connecticut home loans. Also known as "Freddie Mac."

    Fair Isaac Company, the company that invented the programs that determine the value of your credit score based on a high number of variables. See All About Credit Scores

    Firm Commitment
    A promise by FHA to insure Connecticut mortgages loan for a specified property and borrower. A promise from a lender to make Connecticut mortgages loan.

    Federal National Connecticut mortgages Association (Fannie Mae)
    A tax-paying corporation, created by Congress, that purchases and sells conventional residential Connecticut mortgages as well as those insured by FHA or guaranteed by VA. This institution makes Connecticut mortgages money more available and more affordable.

    First mortgages
    The primary lien against a property.">

    Fixed Installment
    The monthly payment due on Connecticut mortgages loan including payment of both principal and interest.

    Fixed Rate Connecticut home loan or Connecticut mortgages
    The Connecticut mortgages interest rate will remain the same on these Connecticut mortgages throughout the term of the Connecticut mortgages for the original borrower.

    Floating Rate
    An interest rate that normally uses the prime rate a base. The lender will charge a certain rate over the prime rate. This interest rate can change month to month and must be paid off in a short time frame. Construction loans usually use floating interest rate loans. The term floating rate can also refer to a borrower who chooses not to lock in an interest rate at time of application or during the loan process. He is usually hoping that the rates will go down and he can get better terms. During the time the loan is not locked in it is considered having a floating interest rate.

    Float Period
    The float period refers to the time between when you accept a Connecticut home loan and when you lock in your rate. During this time the interest rate and points on your Connecticut home loan will fluctuate with the market until you lock.

    Flood Insurance
    Coverage above normal hazard insurance to cover damage caused by rising water. If the property is located in a flood zone area, flood insurance is required to obtain mortgages from any federally regulated lenders. Flood zones are designated through government flood plain maps and flood insurance is only obtainable if you live within these designated areas.

    Forbearance Agreement
    An agreement that a lending institution will delay exercising its right to foreclose on a loan as long as the borrower performs certain agreed upon terms and conditions.

    A legal process by which the lender or the seller forces a sale of a Connecticut mortgaged property because the borrower has not met the terms of the Connecticut mortgage. Also known as a repossession of property.

    Freddie Mac
    see Federal Home Loan Mortgages Corporation

    Free and Clear
    A term used to describe the status of Connecticut mortgages that has been completely paid off. The property is free of any liens or encumbrances such as tax liens, etc.

    Fully Amortized ARM
    An adjustable-rate Connecticut mortgages (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

    The Federal National Mortgages Association is a secondary mortgages institution which is the largest single holder of home mortgages in the United States. FNMA buys VA, FHA, and conventional mortgages from primary lenders. Also known as "Fannie Mae."

    Full Documentation Loans
    CT Mortgages that require the most information from the borrower. All information presented in the application must be verified. Most mortgages loans will use full documentation.

    Fully Indexed Rate
    The base index rate plus the margin on an adjustable rate mortgages plus the highest gross margin during the life of the loan.

    Gift Letter
    A letter verifying that funds given to a borrower are truly a gift and need not be repaid.

    Ginnie Mae
    see Government National Mortgages Association.

    Good Faith Deposit
    A sum of money given to demonstrate intention to complete the purchase. With regard to Connecticut mortgages, it is the sum of money given to demonstrate intention to complete the Connecticut home loan, a show of good faith.

    Good Faith Estimate
    An estimate of charges that a borrower is likely to incur in connection with a settlement. This is required under RESPA (the Real Estate Settlement Proceedures Act)

    Government National Mortgages Association (GNMA)
    Also known as "Ginnie Mae," provides sources of funds for residential Connecticut mortgages, insured or guaranteed by FHA or VA.

    Graduated Payment Mortgages (GPM)
    A type of flexible-payment Connecticut mortgages where the payments increase for a specified period of time and then level off. This type of Connecticut mortgages has negative amortization built into it.

    In a deed, the buyer of real estate.

    In a deed, the seller of real estate.

    Gross Income
    Total income before any expenses are deducted.

    Gross Monthly Rent ,Multiplier Approach (GMRM)
    An income approach to appraising income property that uses the rent that a property is expected to earn to obtain an indication of the property's value.

    Growing-Equity Mortgages (GEM)
    A fixed-rate Connecticut mortgages that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the Connecticut mortgage.

    A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

    Guarantee Mortgages
    Connecticut mortgages that is guaranteed by a third party.

    Hazard Insurance
    A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.

    Home Equity Connecticut home loan
    Sometimes referred to as a second Connecticut mortgages or borrowing against your home. The Connecticut home loan allows you to tap into your home's built-up equity, which is the difference between the amount your home could be sold for, and the amount that you still owe. Homeowners often use a home-equity Connecticut home loan for home improvements, to pay for a new car, or to finance their child's college education. A home-equity Connecticut home loan is a good way to borrow money for two main reasons: 1.) the interest rate is usually one of the lowest Connecticut home loan rates a borrower can get and 2.) the interest you pay on the Connecticut home loan is usually tax-deductible. (Consult your own tax council for details)

    There are two types of financing available from your home equity, a home equity loan and a home equity line of credit (he-lock). A home equity loan is like any other loan, agreed on an initial loan amount and repayable in equal installments of interest and principal over an agreed period. A home equity line of credit (HELOC) is an agreed amount where the borrower can draw up to this total amount and repay and reborrow as often as required over a set period of time, usually ten years. After that time the line of credit will revert to a loan and any outstanding balance must be repaid on a regular monthly basis covering both interest and outstanding principal over an agreed period.

    Homestead Exemption
    In some states, the home and property occupied by an owner are protected by law up to a certain amount from attachment and sale for involuntary liens.

    Housing Affordability Index
    Estimate of housing affordability based on the price of the median sales price of an existing single-family home, median income, mortgages rates and assumptions concerning down payment, property taxes and insurance.

    Housing Expenses-to-Income Ratio
    The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.

    Hubbard Clause Contingency
    A clause in a property purchase contract that protects a buyer from having to close on the purchase of a new home until they have successfully managed to sell their current home. Many sellers do not wish to accept these clauses in their sales contracts in case the sales contract doesn’t close. A seller may favor a potential purchaser that doesn’t have a current property to sell or who does not make the purchase of the new home contingent on selling their current home. A seller may even accept a lower offer from such an unencumbered buyer.

    Understanding the Hubbard Clause

    HUD - U.S. Department of Housing and Urban Development
    Office of Housing/Federal Housing Administration within HUD insures home Connecticut mortgages loans made by lenders and sets minimum standards for such homes.

    HUD-1 statement
    A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, Connecticut home loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing.

    That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, Connecticut mortgages insurance, lease payments, and other items as they become due. Also known as reserves.

    A published interest rate against which lenders measure the difference between the current interest rate on an adjustable-rate Connecticut mortgages and that earned by other investments (such as U.S. Treasury Security yields, the monthly average interest rate on Connecticut home loans closed by savings and Connecticut home loan institutions and the monthly average Costs-of-Funds incurred by savings and Connecticut home loans), which is then used to adjust the interest rate on an adjustable-rate Connecticut mortgage.

    Indexed rate
    The sum of the published index plus the margin. For example if the index were 9% and the margin 2.75%, the indexed rate would be 11.75%. Often, lenders charge less than the indexed rate the first year of an adjustable-rate Connecticut mortgage.

    Initial Interest Rate
    This refers to the original interest rate of the Connecticut mortgages at the time of closing. This rate changes for an adjustable-rate Connecticut mortgages (ARM). It's also known as "start rate" or "teaser."

    The regular periodic payment that a borrower agrees to make to a lender.

    Installment Sales Contract
    A contract to buy a home where the buyer purchases the home directly from the seller. The seller acts as the lender in this type of sale. The borrower usually does not receive title to the property until all payments and terms of the contract have been met. We are often able to arrange financing prior to the end of the installment sale contract. Also known as Seller Financing.

    Institutional Lender
    A financial institution that invests in mortgages and keeps them in their portfolio, often called a portfolio lender. Savings and Loans, mutual savings banks, life insurance companies, commercial banks, pension and trust funds are institutional or portfolio lenders.

    Insurance Binder
    Written evidence of temporary hazard coverage that. runs for a limited time only and must be replaced by a permanent policy on the subject property.

    Insured Connecticut mortgages
    Connecticut mortgages that is protected by the Federal Housing Administration (FHA) or by private Connecticut mortgages insurance (MI).

    A charge paid for borrowing money. Interest is usually expressed as a percentage of the amount borrowed, or interest rate.

    Interest Accrual Rate
    The percentage rate at which interest accrues on the Connecticut mortgage. In most cases, it is also the rate used to calculate the monthly payments.

    Interest Only Mortgages - Interest Only Loans
    A Connecticut home loan where the borrower is only required to pay the accrued interest on the outstanding principal each period. There are no principal payments associated with these types of Connecticut mortgages. Interest only loans can be useful in reducing the monthly payment obligations for a borrower who is above the maximum permissible level of monthly loan payments, expressed as a ratio of gross monthly income. Interest only mortgages can also be used to enable a borrower to buy a more expensive property than would be possible with a regular amortizing loan. In recent years, the capital growth in the value of a home has often exceeded the annual principal payments on a Connecticut mortgage.

    Interest Rate
    The annual rate of interest on the Connecticut home loan, expressed as a percentage of 100.

    Interest Rate Buydown Plan
    An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor's monthly payments during the early years of a Connecticut mortgage.

    Interest Rate Ceiling or Cap
    For an adjustable-rate Connecticut mortgages (ARM), the maximum interest rate, as specified in the Connecticut mortgages note.

    Interest Rate Floor
    For an adjustable-rate Connecticut mortgages (ARM), the minimum interest rate, as specified in the Connecticut mortgages note.

    Interim Financing
    A construction Connecticut home loan made during completion of a building or a project. A permanent Connecticut home loan usually replaces this Connecticut home loan after completion.

    A money source for a lender.

    Joint Tenancy
    An equal undivided ownership of a property by two or more persons. The survivors take complete interest in the property upon death of any of the owners.

    The decision of a court that become liens against an individual or a lien on real estate of the individual.

    Jumbo Connecticut home loan
    A Connecticut home loan which is larger (more than $333,700 as of 1/1/03) than the limits set by the Federal National Mortgages Association and the Federal Home mortgages Corporation. Because jumbo Connecticut home loans cannot be funded by these two agencies, they usually carry a higher interest rate.

    Junior Lien
    A mortgages that does not stand in first lien position. For example, a home equity loan.

    Late Charge
    The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.

    Leasehold Estate
    An estate whereby one has possession but not ownership of land and/or property.
    Legal Description
    A description of land sufficiently accurate so that an independent surveyor can locate and identify the property.

    Lease-Purchase Connecticut mortgages loan
    An alternative financing option that allows low- and moderate-income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first Connecticut mortgages plus an extra amount that accumulates in a savings account for a down payment.

    Any licensed person or entity advancing funds that are to be repaid. Also known as a Connecticut mortgagee.

    A person's financial obligations. Liabilities include long-term and short-term debt.

    A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

    Lifetime Payment Cap
    For an adjustable-rate Connecticut mortgages (ARM), a limit on the amount that payments can increase or decrease over the life of the Connecticut mortgage.

    Lifetime Rate Cap
    For an adjustable-rate Connecticut mortgages (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the Connecticut home loan. See cap.

    Limited Documentation Loans
    Mortgages loans that require less documentation than fully processed loans.

    Liquid Assets
    Cash or assets that can be immediately converted to cash.

    A sum of borrowed money (principal) that is generally repaid with interest.

    Loan Amount
    The amount of debt, not including interest.

    Loan Officer
    Your Connecticut home loan officer is your personal guide throughout the Connecticut mortgages process. He or she will help you to identify your needs, select a Connecticut home loan program, complete the application process, offer advice and answer any questions you may have.

    Loan Servicing
    The lender that provides the borrower's mortgages will service the loan in the following ways:
  • Collect all monthly payments

  • Make all disbursements to the lender

  • Place predetermined monies in all escrow accounts

  • Make all payments from escrow accounts to appropriate agencies (real estate taxes, insurance, PMI companies, etc.)

  • Loan-to-Value Ratio (LTV)
    The relationship between the amount of the Connecticut mortgages loan and either the appraised value of the property or the purchase price (which ever is the lesser amount) expressed as a percentage.

    Lender's guarantee that the Connecticut mortgages rate quoted will be good for a specific number of days from day of application.

    Lock Period
    A lock period refers to the amount of time prior to closing that you can secure an interest rate for your Connecticut home loan. Generally, lock periods range from 30 days to over 90 days.

    The amount a lender adds to the index on an adjustable rate Connecticut mortgages to establish the adjusted interest rate.

    Market Value
    The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

    Marketable Title
    A title that is free and clear of objectionable liens, clouds or other title defects. A title that enables an owner to sell his property freely to others and that others will accept without objection.

    The date on which the principal balance of a Connecticut home loan becomes due and payable.

    Mechanics Lien
    A lien allowed by statue to contractors, laborers and suppliers on buildings where work has been performed or for which materials were supplied and payment is still due. In a new subdivision it is important to obtain lien waivers for the off-site improvements such as street paving, sewers, street lights and water lines. A lien waiver can be a partial waiver or a final waiver. A partial waiver is used where only partial payment has been provided to the contractor.

    Median Sales Price
    The year-to-year percent change in the median sales price of an existing single-family home. The median price is that price at which one-half of the homes sold fell below the price and one-half of the sales were above it.

    Member, Appraisal Institute (MAl)
    A designation awarded to a member of the American Institute Qf Real Estate Appraisers.

    Metes and Bounds
    A description of land Iocation where the boundaries are defined by directions and distances.

    Minimum Down Payment
    Minimum down payment is the amount of money you are required to put down at closing. If the minimum is 10%, you must make a down payment of at least $10,000 on a $100,000 house.

    MIP (CT mortgages Insurance Premium)
    It is insurance from FHA to the lender against incurring a loss on account of the borrower's default.

    Monthly Payment
    The amount paid each month towards the principal and interest amount of a Connecticut home loan. The monthly payment may or may not include taxes and insurance.

    Monthly Fixed Installment
    That portion of the total monthly payment that is applied toward principal and interest. When Connecticut mortgages negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The Connecticut home loan balance therefore increases instead of decreasing.

    CT Mortgages
    A legal document that pledges a property to the lender as security for payment of a debt. A Connecticut home loan for a house. Also referred to as a lien or claim against real property.

    CT Mortgages Banker
    A company that originates Connecticut mortgages exclusively for resale in the secondary Connecticut mortgages market.

    CT Mortgages Broker
    An entity that specializes in Connecticut home loan originations and receives a commission, usually from the lender, for matching borrowers with lenders. The Connecticut mortgages broker performs some or most of the Connecticut home loan processing functions such as taking Connecticut home loan applications, ordering credit reports, appraisals and title reports. Typically, the Connecticut mortgages broker does not underwrite the Connecticut home loan and generally does not use its own funds for closing.

    The lender.

    Mortgages Commitment Letter
    A formal offer from a bank, or other lending institution, which states the terms under which it agrees to advance Connecticut mortgages funds to a homebuyer.

    Mortgages Insurance
    Money paid to insure the Connecticut mortgages when the down payment is less than 20 percent.

    Mortgages Insurance Premium
    The payment made by a borrower to the lender for transmittal to HUD. These payments help defray the cost of the FHConnecticut mortgages insurance program and provide a reserve fund to protect lenders against loss in insured Connecticut mortgages transactions. In FHA insured Connecticut mortgages, this represents an annual rate of one-half of 1 percent paid by the borrower on a monthly basis.

    Mortgages Life Insurance
    A type of term life insurance In the event that the borrower dies while the policy is in force, the debt is automatically paid by insurance proceeds.

    Mortgages Servicing Disclosure
    The lender must inform the homeowner if the servicing rights of this Connecticut mortgages loan may be sold to another lender.

    Mortgages Note
    A written promise to pay a sum of money at a stated interest rate over a specific term. It is secured by the Connecticut mortgage.

    The borrower or homeowner.

    Negative Amortization
    Occurs when your monthly payments are not large enough to pay all the interest due on the Connecticut home loan. This unpaid interest is added to the unpaid balance of the Connecticut home loan. The danger of negative amortization is that the home buyer ends up owing more than the original amount of the Connecticut home loan.

    Net Effective Income
    The borrower's gross income minus federal income tax.

    No Documentation Connecticut Mortgage
    A no-documentation, or "no-doc", Connecticut mortgages is a specialty Connecticut home loan product that generally requires a down payment of at least 5% to 30% of the home purchase price. No-doc Connecticut mortgages are generally a wise choice for self-employed people, those who do not wish to verify their income and those with a brief or blemished credit history, or no credit at all. The benefits of a no-doc Connecticut mortgages include a shorter application process, since you are not required to provide income, employment or asset documentation, as well as a streamlined approval, because there is little subsequent verification. However, no-doc Connecticut mortgages generally will be at slightly higher interest rates. Lenders will still require to see evidence that the borrower has income, usually by requesting recent bank statements and by having access to tax returns.

    Net worth
    The value of all assets, including cash less total liabilities.

    No Income Verifying Loan
    A mortgages program, especially for the self employed that does not need to verify the income reported by the borrower.

    Non Assumption Clause
    A statement in Connecticut mortgages contract forbidding the assumption of the Connecticut mortgages without the prior approval of the lender. Note: The signed obligation to pay a debt, as Connecticut mortgages note.

    Non-conforming Connecticut home loan
    A conventional home Connecticut mortgages that does not meet the criteria of Fannie Mae or Freddie Mac for various reasons including Connecticut home loan amount, Connecticut home loan characteristics or underwriting guidelines. Non-conforming Connecticut home loans usually incur a higher rate and/or points.

    Non-Owner Occupant
    A borrower on the Connecticut mortgages who will not be living in the property. The borrower on an investment property is also known as a non-owner occupant.

    A legal document that obligates a borrower to repay Connecticut mortgages loan at a stated interest rate during a specified period of time.

    Office of Thrift Supervision (OTS)
    The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home loan Bank Board

    One-year adjustable
    CT mortgages whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender.

    Open-End Mortgage
    A mortgages that provides that the outstanding loan balance may be increased upon mutual agreement of the lender and the borrower.

    Option ARM
    The Option ARM in Connecticut has been developed to offer a client an opportunity to decide monthly how much money to pay toward the mortgage. The Option ARM payment may be a low introductory rate below prime, interest only, 30 year fixed, or 15 year fixed. The homeowner selects what payment fits each month. This mortgages is usually calculated off an index such as the LIBOR, COSI, or COFI. (These indices are tracked daily in most financial papers.) These indexes are more stable than the bond and therefore are less likely to incur large swings.

    Operating Expenses
    The cost of maintaining a multi-unit property.

    Origination Fee
    The fee charged by a lender to prepare Connecticut home loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of the face value of the Connecticut home loan.

    Owner Financing
    A property purchase transaction in which the party selling the property provides all or part of the financing.

    Owner Occupant
    A borrower who will be residing in the subject property as his principal residence.

    The principle amount of Connecticut mortgages with no premiums or discounts. A loan interest rate that is quoted at no points.

    Payment Change Date
    The date when a new monthly payment amount takes effect on an adjustable-rate Connecticut mortgages (ARM) or a graduated-payment Connecticut mortgages (GPM). Generally, the payment change date occurs in the month immediately after the adjustment date.

    Payment Shock
    For underwriting purposes, a situations where the borrower has a significant increase in his monthly housing debt.

    Periodic Payment Cap
    A limit on the amount that payments can increase or decrease during any one adjustment period.

    Periodic Rate Cap
    A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.

    Permanent Connecticut home loan
    A long term Connecticut mortgage, usually ten years or more. Also called an "end loan."

    Piggyback loan
    An alternative to private Connecticut mortgages insurance, also known as a second trust loan. The most common type is an 80/10/10 where a first Connecticut mortgages is taken out for 80% of the home's value, a down payment of 10% is made and another 10% is financed in a second trust at a higher interest rate. In some cases, you may even qualify for a piggyback loan with as little as a 5% down payment.

    Principal, Interest, Taxes and Insurance. Also called monthly housing expense.

    Planned Unit Development (PUD)
    This type of property is a cross between a single family home and a condominium. The property can be a single family home, condominium or townhome with an owner's association. PUD units are taxed individually. They also have individual utility meters. A PUD generally requires the same mortgages documentation as a single family home.

    Pledged account Connecticut mortgages (PAM):
    Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce Connecticut mortgages payments.

    Points (loan discount points)
    Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the Connecticut home loan amount (i.e. two points on a $100,000 Connecticut mortgages would cost $2,000).

    Power of Attorney
    A legal document authorizing one person to act on behalf of another.

    The process of determining how much money you will be eligible to borrow before you apply for a Connecticut home loan.

    Prepaid Expenses
    Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private Connecticut mortgages insurance and special assessments.

    A privilege in Connecticut mortgages permitting the borrower to make payments in advance of their due date. Allows the borrower to pay the Connecticut home loan off sooner and save on interest. Not all Connecticut mortgages agreements allow for prepayment, and some lenders will charge a fee for early repayment of debt, see Prepayment Premium.

    Prepayment Penalty or Premium
    Money charged for an early repayment of debt. Prepayment penalties are permitted to be charged on Connecticut home loans.

    A process to determine how much of a mortgages a borrower may qualify for based on income and credit information. This is not an approval of a mortgages but does indicate to a realtor how much a potential purchaser could borrow.

    Primary Connecticut Mortgages Market
    Lenders, such as savings and loan associations, commercial banks, and Connecticut mortgages companies, who make Connecticut mortgages loans directly to borrowers. These lenders sometimes sell their Connecticut mortgages to the secondary Connecticut mortgages markets such as to FNMA or GNMA, etc.

    Primary Residence
    A property where the homeowner occupies and takes title to. A person can have only one primary residence.

    The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a Connecticut mortgage.

    Principal Balance
    The outstanding balance of principal on Connecticut mortgages not including interest or any other charges.

    Principal, Interest, Taxes, and Insurance (PITI - pronounced ‘pitty’)
    The four components of a monthly Connecticut mortgages payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the Connecticut mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts that are paid into an escrow account each month or not.

    Private Mortgages Insurance (PMI)
    In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With the smaller down payment Connecticut home loans, however, borrowers are usually required to carry private Connecticut mortgages insurance. Private Connecticut mortgages insurance will usually require an initial premium payment and may require an additional monthly fee depending on your Connecticut home loan's structure.

    Processing is the steps a lender takes to gather borrower information for underwriting. Processing includes getting the credit report, appraisal, verification of employment, assets, etc.

    Proration of Taxes
    A calculation to divide the taxes equally or proportionately. At the time of the sale, the seller pays taxes covering his period of ownership of the property and the buyer pays taxes covering his period of ownership of the property.

    Purchase Money Mortgage
    Connecticut mortgages given by a purchaser of real estate to the seller as part of consideration in a sales contract.

    Quick Claim Deed
    A deed that releases any claim or interest in a property. This deed is used very often in a divorce situation where one spouse quick claims his interest in the home owned jointly. It is important to remember that this does not limit the liability for paying the mortgage. Both parties are still on the note and mortgage. If the spouse who receives the house in the divorce does not make mortgages payments in a timely manner, the other spouse who has quick claimed the property will be responsible for the mortgages payments. Any late mortgages payments will also show up on both spouse's credit reports. This has surprised many divorced people trying to get a new mortgage.

    Qualification is the initial process to verify that a borrower has enough cash and sufficient income to purchase a home. Qualification is not an approval because necessary documents have not been collected and check from the borrower. At Acorn Home mortgages CT, we will have made credit enquiries to access the credit worthiness of the borrower and the likely interest rate that they would pay. Without this, we cannot estimate the maximum amount of money that the borrower could borrow. Once pre-approved, a lender has actually confirmed the current interest rate at which they would be prepared to lend, subject to satisfactory documentation.

    Qualifying Ratios
    Calculations used to determine if a borrower can qualify for a Connecticut mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio.

    In lending, the amount of interest on the Connecticut home loan expressed as an interest rate or annual percentage rate (APR) of the principal.

    Rate Lock
    A commitment issued by a lender to a borrower or other Connecticut mortgages originator guaranteeing a specified interest rate and lender costs for a specified period of time.

    Rate/Point Options
    These options are all the combinations of interest rate and points that are offered on a particular Connecticut home loan. Usually, paying more points lowers interest rates.

    Real Estate Broker
    A middleman or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property but generally represents the owner.

    A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

    Real Estate Agent
    A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.

    Real Estate Settlement Procedures Act (RESPA)
    A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

    Rescind or Recission / Rescission
    To cancel a contract. With respect to Connecticut mortgages refinancing, the law that gives the homeowner three days to cancel a contract once it is signed if the transaction uses equity in the home as security.

    Recording Fees
    Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.

    Redemption Period
    The time period in a foreclosure that a borrower who is in default cannot be evicted or be divested of legal title. This time period also allows the borrower to repay his debt in full.

    The alleged identification by some lenders of specific geographic areas for the purpose of denying mortgages in a discriminating way.

    Obtaining a new Connecticut mortgages loan on a property already owned. Often to replace existing Connecticut home loans on the property.

    Regulation H
    A Federal regulation used by the Secretary of Housing and Urban Development (HUD) to implement the Real Estate Settlement Procedures Act (RESPA).

    Regulation Z
    Federal regulation by the Federal Reserve Board to carry out the purpose of the Truth-in-Lending Act.

    Renegotiable Rate Connecticut Mortgages
    A Connecticut home loan in which the interest rate is adjusted periodically. See adjustable rate Connecticut mortgage.

    To cancel in such a way as to treat the contract as if it never existed.

    The right of a borrower to cancel a credit transaction where the borrower's primary residence is used as security for the debt. Used in a refinance or home equity loan.

    Resident Alien
    An individual who is not a U.S. citizen but who has an Alien Registration Receipt Card. He is authorized to live and work in the U.S. on a permanent basis. Generally, no problem in obtaining a mortgage.

    Short for the Real Estate Settlement Procedures Act. RESPA is a federal law that allows consumers to review information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnish the information after application only.

    Restrictive Covenants
    An agreement that restricts the use of one's land in some way.

    Reverse Annuity Connecticut Mortgages (RAM) (Reverse Mortgage)
    A form of Connecticut mortgages in which the lender makes periodic payments to the borrower using the borrower's equity in the home as collateral for and repayment of the Connecticut home loan.

    Revolving Liability
    A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services.

    Right of Recision
    The right of a borrower on some types of loans (refinancing, home equity loan) under the Truth in Lending law, to rescind a transaction within a period of 3 days after the closing has taken place. If the borrower does not exercise his Right of Recision, all monies are then disbursed to the borrower on the fourth day after the closing.

    Sales Concessions
    Money or other things of value paid or transferred by the seller to the buyer to entice him to purchase the property. These concessions will be deducted from the sales price before the loan amount to be borrowed will be calculated.

    Satisfaction of Connecticut mortgages
    The document issued by the Mortgagee when the Connecticut mortgages loan is paid in full. Also called a "release of Connecticut mortgage."

    Second Home
    A single-family home that the borrower occupies in addition to his primary residence. This home cannot be income producing property.

    Second Connecticut mortgages
    Connecticut mortgages made subsequent to another Connecticut mortgages and subordinate to the first one.

    Secondary Connecticut mortgages Market
    The place where primary Connecticut mortgages lenders sell the Connecticut mortgages they make to obtain more funds to originate more new Connecticut home loans. It provides liquidity for the lenders.

    The property that will be pledged as collateral for a Connecticut home loan.

    Selling the Mortgage
    This occurs when the current lender that the borrower is paying his Connecticut mortgages to sells his loan to another mortgages servicing company. The old lender is required by federal law to inform the borrower if servicing rights have been sold. The only change this means for the borrower is where to send his Connecticut mortgages payments. All terms of the borrower's Connecticut mortgages do not change.

    Seller Carry-back
    An agreement in which the owner of a property provides financing, often in combination with an assumable Connecticut mortgage. See owner financing.

    An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services Connecticut mortgages that have been purchased by an investor in the secondary Connecticut mortgages market.

    All the steps and operations a lender performs to keep a Connecticut home loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like.

    Settlement/Settlement Costs
    see closing/closing costs

    Shared Appreciation Connecticut Mortgages (SAM)
    Connecticut mortgages in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to Connecticut mortgages where the borrowers shares the monthly principal and interest payments with another party in exchange for part of the appreciation.

    Simple Interest
    Interest which is computed only on the principle balance.

    Society of Real Estate Appraisers (SREA)
    A professional organization for qualified appraisers.

    Standard Payment Calculation
    The method used to determine the monthly payment required to repay the remaining balance of Connecticut mortgages in substantially equal installments over the remaining term of the Connecticut mortgages at the current interest rate.

    Step-Rate Connecticut Mortgages
    Connecticut mortgages that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the Connecticut home loan.

    Subordinate Financing
    A mortgages that is junior to the mortgages in first position on a property. Usually a home equity mortgages would be subordinate to the first or primary mortgage.

    Subordination Agreement
    A recorded legal agreement that acknowledges that a debt is inferior to the interest of another debt in the same property. In a refinance, when replacing the first mortgages with a new loan but keeping the second or third mortgage, the lender of the second or third mortgages must agree in writing to subordinate their loan to the new first mortgage.

    Subordination Clause
    The clause inserted into Connecticut mortgages document that keeps the Connecticut mortgages secondary to any other Connecticut mortgages. Connecticut mortgages are valued according to the chronological order on which they are put onto a property. In the event of a foreclosure, all the money from the foreclosure sale goes to payoff the lender of the first mortgage. Whatever money is left goes to payoff the holder of the second third or fourth mortgages. When a first mortgages is paid off, the second advances to become the first, the third to second and so on. When a second advances to first position, it could prevent a homeowner from refinancing. Hence a subordination clause is inserted in the second mortgages so that it remains in second position.

    A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any buildings.

    Sweat Equity
    Equity created by a purchaser performing work on a property being purchased.

    Tax Lien
    A claim against the property for non-payment of property taxes. May also mean non-payment of income tax.

    Tenancy in Common
    Ownership of property by two or more persons with no right of survivorship. Interest is passed on to heirs after the death of an owner. This form of ownership is usually requested if the mortgages is part of a business deal.

    Tenancy at Will
    An interest created with the consent of owner and tenant, which may be terminated at the will of either party.

    Tenancy of Sufferance
    The interest of a tenant who enters lawfully, but stays on after the expiration of the lease without the landlord's permission.

    Tenancy by the Entirety
    A form of ownership offered only to married couples. This ownership allows for automatic right of survivorship if one of the spouses die.

    The life of the Connecticut home loan. The period of time between the beginning loan date on the legal documents and the date the entire balance of the Connecticut home loan is due.

    Third-party Origination
    When a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the Connecticut mortgages it plans to deliver to the secondary Connecticut mortgages market.

    A document that gives evidence of an individual's ownership of property.

    Title Insurance
    A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller. Policies are also available to protect the lender's interests.

    Title Search
    An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company.

    Total Expense Ratio
    Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

    Trailing Spouse
    A person who leaves his existing employment and moves with his spouse who has been relocated by her employer. Usually, the underwriter will want to know if the trailing spouse has the potential for employment in the new location but has not found a job yet. Not all lenders count trailing spouse income.

    Transfer Fees
    Fees collected from buyer and seller of a property to defray city or county charges for changing the mortgages records.
    Transfer Tax
    A tax levied on the sale of real property, a sales tax on real estate.

    Treasury Securities Index
    This ARM index is published weekly by the Federal Reserve Board. It gives the constant maturity interest rate for treasury securities. This interest rate is the one that investors pay to buy government debts.

    Trust Deed (Deed of Trust)
    An instrument in place of a mortgage. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full.

    A federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for the Connecticut home loan. Also known as Regulation Z.

    Two-Step Connecticut Mortgages
    Connecticut mortgages in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. the lender sometimes has the option to call the Connecticut home loan due with 30 days notice at the end of seven or 10 years. also called "Super Seven" or "Premier" Connecticut mortgage.

    Unimproved Property
    Vacant land

    The analysis of risk involved in granting Connecticut mortgages loan to a particular borrower and the process by which a lender determines whether the risk is acceptable. Underwriting involves the evaluation of the property as outlined in the appraisal report, and of the borrower's ability and willingness to repay the Connecticut home loan.

    The underwriter is responsible for reviewing and verifying all your documents and information and submitting it to a credit officer.

    Interest charged in excess of the legal rate established by law.

    Vacancy Factor
    A percentage rate showing the loss from gross rental income due to vacancy on income property.

    Veteran Affairs (VA) loan
    A long-term, low- or no-down payment Connecticut home loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.

    VA Mortgages Funding Fee
    A premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a VA-backed Connecticut home loan. On a $75,000 fixed-rate Connecticut mortgages with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed.

    Variable Rate Connecticut Mortgages (VRM)
    see adjustable rate Connecticut mortgage

    Verification of Deposit (VOD)
    A document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts.

    Verification of Employment (VOE)
    A document signed by the borrower's employer verifying his/her position and salary.

    Verification of Mortgages (VOM)
    A written verification that is sent by the lender to the borrower's current mortgages holder. It will provide a 12 to 24 month payment history on the current mortgage.

    Voluntary Conveyance
    A transfer of title, usually from a delinquent mortgagor to the mortgagee, given voluntarily to satisfy the balance due on a defaulted loan and to avoid foreclosure proceedings. Also called" deed in lieu of foreclosure" or "voluntary deed."

    Waiver of Lien
    Usually a contractor who holds legal claim to the value of materials provided until paid in full. If this contractor executes a waiver of lien, the claim is surrendered against the property that the work has been done on.

    Depositing loans in a bank by a lender for sale at a later date. The lender borrows lending funds on a short-term basis with the permanent real estate loan pledged as collateral. This form of interim financing is used until the real estate loan is sold to the permanent investor.

    Warehouse Fee
    Many Connecticut mortgages firms must borrow funds on a short term basis in order to originate Connecticut home loans which are to be sold later in the secondary Connecticut mortgages market (or to investors). When the prime rate of interest is higher on short term loans than on Connecticut mortgages loans, the Connecticut mortgages firm has an economic loss which is offset by charging a warehouse fee.

    Warranty Deed
    A deed in which the grantor guarantees good clear title to the property. This is always the best deed to want when buying a home.

    Wire Transfer
    A quick way to move cash between banks. Very often funds for closing a wire transferred from the lender to whomever is doing the closing on mortgages loan.

    Wraparound Connecticut Mortgages
    Results when an existing assumable Connecticut home loan is combined with a new Connecticut home loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top.

    The effective annual amount of income that is being accrued on an investment. Yield is expressed as a percentage of the price originally paid.

    Zero Lot Line
    The placing of a structure on a lot so one side rests directly on the lot's boundary line. Such construction is restricted by setback ordinances.

    Public regulations to control land use in a district.


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