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A: Why use a Connecticut Mortgage Broker?
Connecticut Mortgage brokers.
Apply for a Connecticut Home Equity Loan
Apply for a Connecticut Home Mortgage Loan
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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
Par
The principle amount of a CT mortgage 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 CT mortgage (ARM) or a graduated-payment CT mortgage (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 CT mortgage, usually ten years or more. Also called an "end loan."
Piggyback loan
An alternative to private CT mortgage insurance, also known as a second trust loan. The most common type is an 80/10/10 where a first CT mortgage 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.
PITI
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 mortgage documentation as a single family home.
Pledged account CT mortgage (PAM):
Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce CT mortgage 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 CT mortgage would cost $2,000). Paying points reduces your interest rate on the loan and hence your monthly repayments.
Power of Attorney
A legal document authorizing one person to act on behalf of another.
Pre-Approval
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 CT mortgage insurance and special assessments.
Prepayment
A privilege in a CT mortgage 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 CT mortgage 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.
Pre-Qualification
A process to determine how much of a mortgage a borrower may qualify for based on income and credit information. This is not an approval of a mortgage but does indicate to a realtor how much a potential purchaser could borrow.
Primary CT Mortgage Market
Lenders, such as savings and loan associations, commercial banks, and CT mortgage companies, who make CT mortgage loans directly to borrowers. These lenders sometimes sell their CT mortgages to the secondary CT mortgage 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.
Principal
The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a CT mortgage.
Principal Balance
The outstanding balance of principal on a CT mortgage not including interest or any other charges.
Principal, Interest, Taxes, and Insurance (PITI - pronounced ‘pitty’)
The four components of a monthly CT mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the CT 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 Mortgage 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 CT mortgage insurance. Private CT mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your Connecticut home loan's structure.
Processing
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
A CT mortgage given by a purchaser of real estate to the seller as part of consideration in a sales contract.
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