Do you wish to apply for a UT mortgage? Are you familiar with the mortgage glossary? Do you know what you will be dealing with? Even if you hire a professional to do the job for you, you need to be able to evaluate and assess a potential danger or prospective benefits. Unless you are familiar with the basic terminology, you will have a hard time to figuring out if a UT mortgage is beneficial or not.
: when referring to mortgages we refer to loans you can obtain so as to pay for your future house. Both the building and the land are used as collaterals, since the mortgage is a secure loan. This means that if you fail to make the payments on time, the lending institution can apply for foreclosure, taking the house away from you.
Collateral: the items or assets that you place as a security for the repayment of the original mortgage. In the case of a UT mortgage, the house or property are placed as collaterals.
Interest: Interest is the additional amount of money that lenders charge as a fee for using their money to buy or refinance a house. Interest rates can be different among lenders. Interest is generally stated in percentages and added to monthly installments.
Loan term: the amount of time you will need to pay off the debt; it is agreed between you and the lender when obtaining the UT mortgage.
Debt amortization: amortization is a process based on which lenders calculate mortgage payments. The amount applied to principal is usually lower early in the loan and higher towards the end.
Fixed rate: an interest rate that doesn't change throughout the loan's term.
Adjustable rate: a rate that adjusts to the changes of indicators or terms applied by the bank.
Equity: the difference between the value of a property and the unpaid amount of the mortgage. The amount of equity is usually important when the borrower wants to negotiate a refinancing or a loan modification.
Foreclosure: the legal process during which the lender can take the house or property away from the borrower; this happens as a result of failed payments after some time, or as a punishment for not abiding by the agreed terms between the lender and borrower.
Article Source: the-Articles.com
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