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SUE ELLIOT
Mortgage Loan Agent
Santa Clara Valley Morgage
3880 S. Bascom Avenue
Suite 115
San Jose, CA 95124
Office: (831) 429-9126
Cell:
(408) 888-9865
Fax: (831) 429-9103
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Mortgage Terminology
Adjustable Rate Mortgage (ARM)
Annual Cap
Appraisal
Conforming Loan
Conventional Mortgage
Escrow
Escrow Collections
Fixed Rate Mortgage
Adjustable Rate Mortgage (ARM)
A variable rate mortgage with an interest rate that adjusts
periodically.
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Annual Cap
Annual maximum adjustment of your adjustable rate mortgage. For example, if your
annual cap is 2%, your mortgage interest rate can only increase by a maximum
of 2%.
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Appraisal
An estimate of a property’s value as of a given date, determined by a qualified
professional appraiser. The value may be based on several factors including,
recent sales of
comparable properties.
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Conforming Loan
A loan that conforms to Federal National Mortgage Association (FNMA) or Federal
Home Loan Mortgage Corporation (FHLMC) guidelines.
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of page
Conventional Mortgage
A mortgage that is not insured or guaranteed by the federal
government.
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Escrow
An item of value, money, or documents deposited with a third party
to be delivered upon the fulfillment of a condition. For example,
the deposit by a borrower with the lender of funds to pay
taxes and insurance when they become due.
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of page
Escrow Collections
Funds set aside in an escrow account to pay the borrower’s
property taxes, mortgage insurance, and hazard insurance.
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Fixed Rate Mortgage
A mortgage in which the interest rate does not change during the entire term
of the loan.
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 For
the kind of service that accomplishes what you want and need
to accomplish - with experience and expertise backing it up
- and for answers to today's real estate financing questions
and opportunities, call today!
"The
key consideration for people pondering an ARM is how long they
intend to remain in a house. Some popular ARMs carry a fixed
rate during their first three, five, seven or ten years, making
them a good choice for homeowners who plan to move in a relatively
short period. These so-called hybrid ARMs generally aren't
a good idea if you plan to stay put. Other ARMs adjust every
year or less, making borrowers more vulnerable to short-term
swings in interest rates." [Ruth Simon, The Wall Street
Journal Sunday]
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