Understanding Mortgage Basics

This article gives details on the types of businesses involved with mortgages, the mortgage lending process, mortgage products, and interest rates.

The process of applying for a mortgage loan is actually relatively straight forward.

Understand the differences and benefits between pre-qualification and pre-approval.

A VA Loan is a loan that is partially guaranteed by the VA allowing for some very favorable loan features for veterans.

Interest-only mortgages are not really a type of mortgage. The ability to make only interest payments on a mortgage is an option available on adjustable rate mortgages (ARMs) or fixed rate mortgages (FRMs).

Alt-A is a way lenders have of grading or categorizing a loan. For many lenders, Alt-A would be synonymous with A-minus. The definition of an Alt-A loan is somewhat fuzzy, however.

An adjustable rate mortgage, or ARM, is the second most popular type of mortgage behind fixed rate mortgages.

If you are purchasing a new home there are two strategies to avoid paying private mortgage insurance that don't look for you to tap into retirement and long-term investment savings.

A balloon mortgage is any mortgage that has a balance due at the end of its term.

A down payment is the amount of cash deposited towards the purchase of a property, whether residential or business property.

Being alert of this list of mistakes will help you to secure a cost effective loan program that can serve your purpose as well as help you to repay the existing mortgage according to a predefined plan.

Understanding the credit score in a better way enhances your chances to develop a higher score and thus benefit from mortgage loans at better terms and conditions.

A borrower takes out a construction loan to finance building a home. Learn about the types and differences from other loans.

Follow a few simple rules and be patient to improve your credit score and get better mortgage terms.

Discount points include prepaid interest which if paid by a borrower can offer a loan with lower interest rate for the entire loan term. See the example and tax-deductibility.

80/20 and 80/10/10 mortgages, also called piggyback loans, are actually a combination of a primary mortgage loan with a second loan for a low down payment.

Overview of the Federal Housing Authority (FHA) loan insurance program and qualifying.

A fixed rate mortgage, or FRM, is probably the most simple and easy to understand type of mortgage. It is also by far the most popular mortgage type.

A graduated payment mortgage, or GPM, is a mortgage with a fixed interest rate that starts with a low monthly payment that increases with time until it eventually levels off and remains fixed through the remainder of the mortgage term.

Guidelines to consider and strategies for buyers with less than or greater than 20% to put as a down payment.

A brief description of the major laws and regulations meant to govern the mortgage lending process, protect mortgage borrowers, and govern the practices of financial institutions with regard to mortgage lending and protection of borrower financial information.

The purpose of PMI is to protect lenders from loss if a borrower defaults on their loan. This can give lenders the protection necessary for them to make loans to borrowers who do not have a lot of money for a down payment.

Learn about the specifics of second mortgages.

An overview of second loans, home equity loans, or "piggyback" mortgages.

Things to Know Up Front When Shopping for a Mortgage.

A Super Jumbo Mortgage is a residential mortgage or other home-equity secured loan in an amount greater than $650,000.

Learn about insurance that protects the holder of the policy from any claims resulting from defects to the title of real property.

Overview of the major indexes. Each interest rate index has advantages and disadvantages, and reacts differently in times of rising interest rates or declining interest rates.