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 loan giving you the ability to borrow funds at any time, and in the amount you choose, up to your maximum credit limit. The loan is secured by the equity in your home. Home Equity Loan A fixed or adjustable rate loan used for a 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. The number, normally a percentage, by which future interest rates for Adjustable Rate Mortgages are based. 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.