Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs. Appraisal - The determination of property value based on recent sales information of similar properties. Assumable Loan - These loans may be passed on from a seller of a home to the buyer. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.
Brokers usually charge a fee or receive a commission for their services.
Caps - A set percentage amount by which an adjustable rate mortgage may adjust each adjustment period. The first number indicates how much a loan may adjust at each adjustment period while the second number indicates how much a loan may adjust over its lifetime. Two-Step loans are quoted with a single cap, which is the amount by which the loan may adjust at its single adjustment date. Closing Costs Fees paid by the borrower when property is purchased or refinanced. These typically include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges.