The income of the borrower before taxes or other deductions for qualifying purpose. The form utilized at loan closing to itemize the costs associated with purchasing or refinancing a home. Universally used as mandated of HUD, the Department of Housing and Urban Development. Home Equity Line of Credit A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her discretion, up to an amount that represents a specified percentage of the borrower's equity in a property. Home Equity Loan A fixed or adjustable rate loan used for many purposes, also secured by the equity in the home.
Interest paid is usually tax deductible.
Often used for home improvement or freeing of equity for investment on other real estate or investments. Index An index that is used to determine interest rate changes ARM plans. A periodic charge expressed as a percentage, for use of credit. Terms and underwriting requirements may vary from conforming loans. The ratio determined by dividing the sales or appraised value into the loan amount, with the result expressed as a percentage.