Back to top Balloon mortgage A mortgage that s payment is based on an amortization schedule for one term, but is due in full in another. For example, a 5 year balloon note may have a payment based on a 30 year term, but the balance is due in full after 5 years. Loan A mortgage against one residence to pull out the equity to use for the purchase of a replacement home. When the first home is sold, the bridge loan is paid off. Money paid to a mortgage lender by a lender based on the interest rate on a loan.
Compensation is based on how much is added to the par rate.
Buy Down A payment made as a lump sum in a real estate transaction to lower the rate for a specified period of time. Back to top Closing Meeting at which a loan is finalized or settled. Closing costs The costs of a mortgage loan including, but not limited to an origination fee ,buy downs, title costs, underwriting fees, document preparation fees and appraisal. Conforming Mortgage A loan that conforms to the guidelines established by Fannie Mae or Freddie Mac . A mortgage not affiliated with a government program.