Glossary

Adjustable-Rate Mortgage (ARM)

A mortgage loan with an interest rate that can change periodically, typically based on an index, resulting in varying monthly payments over time.

Amortization

The process of gradually paying off a mortgage loan through regular monthly payments, which includes both principal and interest.

Amortization

The process of gradually paying off a mortgage loan through regular monthly payments, which includes both principal and interest.

Amortization

The process of gradually paying off a mortgage loan through regular monthly payments, which includes both principal and interest.

Baloon Mortgage

Balloon mortgage is a type of mortgage loan that features a short-term repayment schedule with fixed monthly payments for a specific period.

Cash-Out refinance

A type of mortgage refinancing in which the borrower replaces an existing mortgage loan with a new loan for a higher amount than the current loan balance.

Closing Costs

They encompass a range of expenses that are incurred when finalizing the purchase of a property. 

Closing disclosure

A document provided to borrowers by their mortgage lender before the closing of a mortgage loan.