The fee lenders may charge to borrowers. Usually stated as a percentage
of the loan. May also be known as points.
May be required on new loans to determine if there is an infestation of
termites or other pests in the home.
A fee that is charged if the loan is paid off earlier than the specified
term of the loan. Depending on your GMAC Mortgage loan program, you may
or may not incur a prepayment penalty. Please contact a GMAC Mortgage
loan “advisor” for more information.
The most favorable interest rate charged by a commercial bank for short
term loans; a benchmark from which a bank computes an appropriate rate
of interest for a loan contract.
Acronym for items included in a monthly mortgage payment: principal, interest,
taxes and insurance. Point An amount equal to one percent of the principal
amount of the mortgage.
The original balance of money lent, excluding interest.
An opinion or estimate of the property's value made by an independent
appraiser or by a member of the lender's staff.
The taxes assessed on the property by the local government (e.g. city,
county, village or township) for the various services provided to the
property owner. Services may include police and fire department, garbage
pick up and snow removal.
A document that lists the price, conditions and terms under which the
buyer is willing to purchase a property.
With most ARMs, any periodic adjustment in the interest rate changes the
payment. Adjustment periods tend to reflect the period of the index of
the most popular ARMs; currently, annual adjustments are the most common.
Consumer safeguards that protect the interest rate during the application
and processing period.
The interest rate lock feature that lenders offer to borrowers.
The amount paid to the real estate firm by the buyer or seller for services
rendered.
An instrument used to transfer title.
Charged by the county recorder's office for the filing of documents or
details of a legal document to make them a matter of public record. Usually
requires the witnessing and notarizing of the documents to be recorded.
The repayment of a debt from the proceeds of a new loan using the same
property as security.