An amortized loan includes regular periodic payments of both principal and interest, that are paid within the term of the loan.

Amortization schedules detail the monthly payments and how much of each payment goes to the principal and interest

All the income you've earned over a year in wages, salary, tips, bonuses, commisions, and overtime amount to your anual income. In the case of mortgage applications, lenders primarily focus on income through wages or salary.

When you apply for a home loan, your lender will require that an appraisal is done on the property. This process involves assessing the value of the home through an inspection and by comparing it to similar real estate in the area.

The annual percentage rate is the cost of borrowing money from the lender, shown as a percentage of your mortgage amount. The APR includes the interest rate as well as all other fees that are paid over the life of the loan.

The appraisal fee is a payment for the appraiser who asseses the value of the property you are looking to buy. The lender uses the appraisal report to determine how large of a mortgage to grant you.

Adjustable rate mortgages have interest rate that change periodically, Such loans have an introductory periods of low, fixed rates, after which they vary, depending on an adjustment index.

Ballons loans come wtih large payments that are to be paid at the end of the mortgage term, separate from the mortgage payments made monthly.

Declaring bankruptcy means that you have submitted an application to a court that admits you are unable to pay back your debts. 

A cash out refinance is when you replace your current home loan with a new mortgage. You agree to a larger loan amount in order to use the equity you've earned on your home

Closing cost involves all the fees and costs that need to be paid before or at the time of closing. Your mortgage contract and disclosures go over all the costs that will be incurred by you as the buyer, the seller, and the lender.

Out of the numerous documents that you will come across during the mortgage process, your Closing Disclosure is one of the most important. This 5-page document specifies the term of your home loan, such as your monthly payments, interest rates, and closi

Conventional Loans are provided by lenders who are not insuranced by the FHA. These mortgages have an added risk, and therefore require higher down payments.

Credit reports are detailed accounts of a person's credit history and payments habits. Lenders use this report to determinated whether or not a borrower is liable to default on a home loan.

The FHA sets credit requirements that you must meet if you are to qualify for a goverment-backed home loan. In order to use the 3.5 percent minimum down payment option, you must have a FICO score no lower than 580.

The debt ratio shows you long-term debt as a percentage of your total assets. The lower your debt-ratio, the better chances are of qualifying for a mortgage.

Escrow is a neutral third party that handles the exchange of money and documents between a buyer and a seller in a real estate transaction. An escrow account is often set up for a borrower by the lender to pay for homeowners insurance and property taxes when these costs come due during the course of a given year.

Fannie Mae is a goverment agency that buys mortgages from lenders in order for them to reinvest their assets. Its purpose is to stimulate the secondary mortgage market in the U.S. and increase availability of low cost housing.

FHA loans are insured by the goverment in order to help increase the availability of affordable housing in the U.S. These loans are backed by the FHA, which protects lenders from significant losses.

Your FICO score is a number that represents your creditworthiness. One of the most widely accepted credit scores, this number comes from an algorithm developed by Fair, Isaac and Company in the 1950.  FICO debuted as a general-purpose score in 1989.

A fixed rate mortage has an interest rate that remains the same for the entire term of the loan.  If your interest rate is fixed, your monthly payments do not rise or fall.

Freddie Mac is a goverment agency that buys mortgages from lenders in order for them to grant more loans to home buyers.  The agency works to stimulate the real estate market and increase avaiability of low cost housing.

As a borrower, you may need to get a home inspection done, where a professionl evaluates the condition of the house based on a visual assssment the report will give you details on any problems with condition  of the home.

The HUD is a government organization that works to increase affordable housing by implementing programs and policies that stimulate the real estate market.

A Jumbo Loan is a mortgage with an amount that exceeds the limits  set by Fannie Mae and Freddie Mac.  A jumbo loan is  good option if you're looking to buy an expensive, luxury home, can afford a large down payment and have a great credit score.

A Loan Term is the amount of time during which a borrower makes monthly payments towards a home loan.  The loan term is subjet to change, depending on the borrower"s payment habits and possible refinancing of the mortgage.

At closing, you will receive  the property title that states you are the owner of the home you purchased. The title company issues the document as evidence that you bought the property legally and no one else has claims  to it.

The Loan-To-Value Ratio compares the loan amount to the actual value of the house.  The LTV metric is used to deptermine the risk of granting a mortgage loan, as well as the mortgage insurance rates and cost that go with it.

In order to qualify ofran FHA- proved loan, you will be required to pay a mortgage insurance premium.   This insurance protects lenders from incurring a loss in case you are unable to make monthly payments.