Tied to the stable 12 month Cost of Funds Index, offering stability to the adjustable rate borrower. Available with no mortgage insurance. A fully amortized loan will have no balloon payment or amount owing at the end of its term. A loan which has a thirty year amortization with a shorter due date, such as five, seven, or ten years will have a balloon payment due at the end of it's term. The lower the interest rate the higher the discount.
Discount is charged as a percentage of the loan amount.
The escrow officer collects all the information regarding transfer of property and funding of loans, informs all parties as to what is needed from them, arranges for everything to happen when it needs to, and collects and distributes funds. An escrow officer is the objective third party who works with everyone to close the transaction in a timely manner. The lender of money or the receiver of the mortgage document. The borrower of money or the giver of the mortgage document. Points can be paid to buy a lower interest rate.