A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level. GPMs involve negative amortization. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less. Protection against damage caused by fire, windstorm, or other common hazards.
Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency. The interest rate or adjustment standard which determines the changes in monthly payments for an adjustable rate loan. The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems Interest. The cost paid to a lender for the use of borrowed money. A form of ownership by which the tenants own a property equally.