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.