Get the most out of your mortgage

Mortgage Terms

LTV - Loan to Value (Amount borrowed compared to Appraised value)

PMI - Private Mortgage Insurance (Required on loans over 80% LTV)

MI - Mortgage Insurance (Same as PMI)

DTI - Debt to Income (Amount of monthly payments compared to income)

PITI -Monthly Payment (Principal, Interest, Taxes and Insurance)

ARM - Adjustable Rate Mortgage

Mortgage - A loan in which property or real estate is used as collateral. The borrower enters into an agreement with the Credit Union wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the loan in full.

Fixed Rate - Your rate is fixed for the term of the mortgage

Escrow - Amount added to your monthly payment for (Property Taxes, Insurance and PMI)

Hazard Ins. - Homeowners insurance on your property (Fire Insurance)

Flood Ins. - If the property is in a flood zone you will need to carry flood insurance

Appraisal - A licensed appraiser will evaluate the property, based on regulated guidelines, to establish a value on the property.

Mortgage App. - An application that is completed with mortgage details. Details such as borrowers name, social security number, current address, employment and income information, loan amount and loan terms will be gathered.

Early Disclosures - Forms provided to the borrower within three days of completing the mortgage application. For example, the Loan Estimate. This form provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan.

Closing Disclosures - A five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). It must be provided to the borrower for signature three days prior to closing.

Closing - Once the mortgage has been given the clear to close (final approval), you will meet with your closing agent to sign final documents and provide the borrower funds needed for closing.

Closing Agent - The attorney or title company of your choice who will handle the final closing for you including the recording of the mortgage and the transfer of the deed.

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