Annual Percentage Rate (APR):
Actual rate you pay during the life of the loan, including interest, points and certain closing costs.
An official valuation of market value of a house. Have the house you want to buy appraised so you don’t pay more than it is worth.
Transfer of ownership of a house when you sign loan papers and deed is recorded.
Report on how timely you pay your bills, debt you are carrying, and your current monthly payments. Credit history is important when a lender considers your loan application.
Fixed Rate Mortgage:
Interest rate is locked in for the life of the loan, so future changes in interest rates won’t affect it.
Hazard insurance and title insurance are required when getting a mortgage. Mortgage insurance also may be required.
Costs you must pay to lending institution for money you borrow.
To get a set interest rate when applying for a mortgage and not waiting until you close. Usually available for up to 90 days before closing.
Part of the closing costs a lender may charge. One point equals 1% of the amount borrowed.
Provision permitting you to pay off mortgage early to reduce interest costs. Some lenders charge a penalty for prepayment.
Amount you borrow, excluding interest and points.