Fixed Rate Mortgage A mortgage whose interest rate does not change for the life of the loan. Principal and interest are also fixed. Flood Insurance A form of hazard insurance required by lenders to cover properties in flood zones. Provided up-front to you from Paone Mortgage Corporation. Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the insurer.
Some indexes are more volatile than others.
The rate charged during the first interval of an ARM Interest Charge paid for borrowing money, calculated as a percentage of the amount borrowed. Interest Rate Cap A safeguard built into ARMs to prevent drastic changes in interest rates. The ownership of property by two or more persons with the survivor taking the share of the deceased. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate. Lender The bank, mortgage company, or mortgage broker offering the loan.