An interest rate that reflects the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs. The APR allows homebuyer s to compare different types of mortgages based on the annual cost for each loan. Assumption The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Broker An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself.
Brokers usually charge a fee or receive a commission for their services.
While the payments are initially low, they will increase when the subsidy expires. Consumer safeguards which limit the amount monthly payments on an adjustable rate mortgage may change. Closing The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Closing Costs Usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The costs of closing usually range between 3 to 6 percent of the mortgage amount.