Interest Only Payments

Interest only payments is a specific loan program at which the borrower agrees to pay the minimum monthly due (interest) for a limited period usually up to 10 years. During that time, the principal balance doesn’t decrease unless you pay an additional amount higher than your minimum monthly payment. When the limited period ends, the monthly payment will increase to cover the fully amortized payment (interest and principal) until the end of the...

Interest Rate

Annual interest rate for each mortgage type.

Interest Rate Cap

The maximum interest rate for the mortgage. The mortgage’s interest rate will never exceed the interest rate cap.

Lender

A person who in the ordinary course of business extends credit to borrowers.

Lender-Paid Mortgage Insurance (LPMI)

Lender-Paid Mortgage Insurance is based on the same concept as mortgage insurance (MI). If the borrower finances over 80% of the loan, they are subject to paying mortgage insurance. However, instead of paying an additional mortgage insurance payment each month, the lender pays the MI premium and charges a slightly higher interest rate. Homebuyers may find LPMI offers advantages over the more traditional borrower-paid MI. Click here for more in-depth...

« Older Entries Next Entries »

logo logo logo logo