Cap A limit on how much a mortgage interest rate may increase or decrease for an adjustable-rate mortgage. Community Home Buyers Program A set of low-income loans guaranteed by Fannie Mae. These loans require only 3 percent or 5 percent down. Conventional mortgage A home loan that follows a fixed rate. An adjustable-rate mortgage that is convertible to a fixed rate at a future date, usually for a fee.
Credit report A full listing of debts and credit.
Credit reports are kept by several companies, and are ordered by a lending company when you apply for a mortgage. Curtailment A payment that shortens or ends a mortgage, thereby paying off the entire debt. A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Default Failure to pay mortgage payments over a specified period of time. Delinquency Being late with loan payments.