Read This – You May Learn Something
Posted by irpmi on February 23, 2007
More Mortgage Terms You Should Know
Appraised Value – an estimate of property’s worth, usually based on recent sales of comparable properties nearby. Lenders use appraisals to verify a home’s value and to justify a lender’s commitment for that home.
Balloon Mortgages– fixed rate loans for a specified period of time (typically 5,10,15 years), with the balance due at the end of the time period. At that time, you must either refinance or repay the entire outstanding balance in one lump sum.
Fixed-Rate Mortgage – have a stable interest rate and monthly payment. The loan is completely paid off at the end of its term, typically 15 or 30 years.
Loan-to-Value (LTV) – the relationship of the mortgage loan to the value of the home, expressed as a percentage. For example: a $100,000 home with a $75,000 mortgage would have an LTV of 75%. Many lenders limit the maximum LTV, which they are willing to lend on a home.
Authored by:
Diane Mack, Realtor
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This entry was posted on February 23, 2007 at 2:31 pm and is filed under Buying, Real Estate, Residential, Selling. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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