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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
Impound
That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, CT mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
Index
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable-rate CT mortgage 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 CT 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 CT mortgage.
Initial Interest Rate
This refers to the original interest rate of the CT mortgage at the time of closing. This rate changes for an adjustable-rate CT mortgage (ARM). It's also known as "start rate" or "teaser."
Installment
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 CT mortgage
A CT mortgage that is protected by the Federal Housing Administration (FHA) or by private CT mortgage insurance (MI).
Interest
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 CT 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 CT 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 CT 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 CT mortgage.
Interest Rate Ceiling or Cap
For an adjustable-rate CT mortgage (ARM), the maximum interest rate, as specified in the CT mortgage note.
Interest Rate Floor
For an adjustable-rate CT mortgage (ARM), the minimum interest rate, as specified in the CT mortgage 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.
Investor
A money source for a lender.
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