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A: Why use a Connecticut Mortgage Broker?
Connecticut Mortgage brokers.
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Mortgage Glossary
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.
A B C D E F G H I J L M N O P Q R S T U V W Y Z
“A” Credit Loan
A CT mortgage 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
A CT mortgage 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.
Acceleration
The right of the CT mortgagee (lender) to demand the immediate repayment of the CT mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due-on-Sale Clause.
Adjustable rate CT mortgage (ARM)
A CT mortgage 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 a CT mortgage 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 CT 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 CT mortgage (ARM).
Adjustment interval
On an adjustable rate CT 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 CT mortgage (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 CT mortgage 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.
Amortization
The repayment of a CT mortgage loan by installments with regular payments to cover the principal and interest.
Amortization Term
The length of time required to amortize the CT mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate CT 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.
Application
A form, commonly referred to as a 1003 form (ten-o-three), used to apply for a CT mortgage and to provide information regarding a prospective borrower and the proposed security.
Appraisal
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.
Appreciation
An increase in the value of a property due to changes in market conditions or other causes.
Appurtenance
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 CT mortgage to close.
Asset
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.).
ARM
Adjustable-rate CT 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 CT mortgage 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.
Arrearages
The total accumulated amount owed in principal, interest, taxes and insurance (the PITI) by a delinquent borrower to a lender.
Assessment
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.
Assessments
Annual charges for city or county improvements like sidewalks and sewers or the home owner’s fee in a condominium.
Assignee
The one to whom a right, title or interest has been transferred for a Connecticut home loan.
Assignment
The transfer of a CT mortgage from one person to another.
Assignment of Rents
A document that can often be included in a CT mortgage that transfers all rents and income from the property to the mortgagee.
Assumable CT mortgage
A CT mortgage that can be taken over ("assumed") by the buyer when a home is sold. A mortgage is assumable if it does not carry a "due on sale" clause. Assumable mortgages are most typically seen on VA mortgages.
Assumption
The transfer of the seller's existing CT mortgage to the buyer. Assuming a Connecticut home loan can usually save the buyer money since this is an existing CT mortgage debt, unlike a new CT mortgage 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) CT 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 CT mortgage.
Automated Underwriting System
A way of processing and underwriting CT mortgages. It is a fast way form CT mortgage brokers to obtain an approval for a CT mortgage 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.
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