You must have at least 20% equity in the home. You may cancel PMI when you have paid down the mortgage balance to 80% of the home's original appraised value.
A consumer safeguard on an adjustable-rate mortgage that limits how much a monthly payment or interest rate can increase or decrease.
Refinancing of an existing mortgage loan, where the new mortgage loan is for a larger amount than the existing mortgage loan, and you (the borrower) get the difference between the two loans in cash.
Certificate of Eligibility
A document given to qualified veterans entitling them to Veteran’s Administration guaranteed loans. Obtained by sending DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility).
Certificate of Reasonable Value (CRV)
An appraisal issued by the Veterans Administration showing a property’s current market value.
Certificate of Title
The official document that states who owns a given piece of property.
How often a payment or interest rate changes in an adjustable-rate mortgage.
The meeting between the buyer, seller, and lender or their agents where the property and funds legally change hands.
Fees paid at the closing of a real estate transaction.
Accepts equal responsibility for paying off a loan alongside the borrower.
Property pledged by a borrower to a lender to accept as a form of security for a loan. Usually an asset.
An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to the completion of paperwork or compliance with stated conditions.
Recently sold homes in the same price and size range as the property a buyer is looking at used to compare the home's fair market value.
The interest earned on both money saved and money earned.
Type of mortgage in which the terms match the criteria set by Fannie Mae and Freddie Mac.
A short-term interim loan to pay for the construction of buildings or homes. Usually written to provide periodic disbursements to the builder as progress is made.
Consumer Reporting Agency
A company that collects and sells consumer information in order to decide whether or not to provide the consumers with credit, insurance, housing, etc.
A condition in a purchase contract that needs to be met by the buyer or the seller before the buyer is obligated to purchase the home. Contingencies protect both parties in the transaction and often include clauses that allow you to back out of the sale if you're unable to secure financing or if the home fails to pass inspections.
Contract Sale or Dead
A contract between buyer and seller of real estate to convey title after certain conditions have been met.
A private-sector loan, one that is not guaranteed or insured by the U.S. government.
An additional clause within an adjustable-rate mortgage loan allowing a borrower to switch from an adjustable-rate mortgage to a fixed mortgage.
Documents an individual's credit history, listing all past and present debts and the timeliness of their repayment.
Credit Risk Score
Predicts the likelihood that a consumer will become ninety days or more overdue on any given account over a two-year period.
Range of numbers between 300 and 850 that represents an individual's credit risk.