When you come to us looking for a first or second mortgage, there is going to be a lot of industry jargon that you will need to know. We will certainly do everything we can to make sure that you understand everything, and will make things as convenient for you as possible. Still, we want to explain some very important terms that you should be aware of. Here are some important mortgage terms explained.
This is a very important term that can often be misunderstood. Home equity is simply the equity that you have built up in your own home. It is the market value of your house minus the money that you still owe on it. Understanding this is important to knowing the viability of getting a loan based on your home’s value.
When you have multiple outstanding debts with varying rates of interest, it is common to get one large loan to pay the rest of them off. This pushes them all together(consolidation) into one loan with a lower monthly payment. Not only is it easier to manage but it can save you money. We offer you options for consolidation via a mortgage.
This is one of the most important terms. Your credit score is an aggregate number that is put together to rate your ability to repay a debt. It is in essence the rating that is given to you by credit bureaus based on past instances expressed as a number. Credit score is often factored in when getting a loan, but we look at far more than just that.
Financing is any time you receive new capital from somewhere else for things you wouldn’t normally have the money for. Refinancing is when you obtain a new mortgage after your first one to help reduce monthly payments, lower your interest rate, or cash in on some of your home’s equity to make a large purchase. This is our specialty.
Understanding some of the more difficult mortgage terms out there is key to knowing when to take advantage of our great policies. We will work hard to get you the best terms possible for your first or second mortgage. These are some important mortgage terms explained in plain English. If you are thinking of taking advantage of our offers, then contact us today.