Qualifying ratios and underwriting methods are standardized to a large degree. The maximum amount that you can borrow under a home equity plan. The total amount of credit card, auto, mortgage or other debt upon which you must pay. Similar to a mortgage. The amount paid either to maintain or lower the interest rate charged.
Most lenders require the down payment to be paid from the buyer's own funds.
Gifts from related parties are sometimes acceptable, and must be disclosed to the lender. The cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Useful in comparing loan programs with different rates and points. An interest rate which is fixed for the term of the loan.