Application Fee, Appraisal Fee, Process Fee, Title Search and Insurance Fees, Origination Fee, Recording Fee.

Mortgage brokers are federally licensed firms or individuals who sell loan programs on behalf of lenders. Mortgage brokers facilitate your search for the most suitable mortgage product – but do not process any loans – every loan is sent to the lender (banker) for processing.

A commitment you obtain from a lender assuring you a particular interest rate or feature for a definite time period. Provides protection should interest rates rise between the time you apply for a loan, acquire loan approval, and, subsequently, close the loan and receive the funds you have borrowed.

A ratio determined by dividing the sales price or appraised value into the loan amount, expressed as a percentage. For example, with a sales price of $100,000 and a mortgage loan of $80,000, your loan to value ratio would be 80%. Loans with an LTV over 80% may require Private Mortgage Insurance.

A one-time charge imposed by the lender to lower the rate at which the lender would otherwise offer the loan to you. Each point is equal to one percent (1%) of the mortgage amount.

The interest rate is the cost of borrowing the principal loan amount. It can be variable or fixed, but it’s always expressed as a percentage. Annual Percentage Rate (APR) is the cost of credit on a yearly basis, expressed as a percentage.

The Loan Approval Process is relatively simple but can seem very mysterious if it is never explained to you. The best news ever is that it takes less and less time these days. Here is an article we wrote that explains the process.

The Disclosure is designed to give you information about the costs of your loan so that you may compare these costs with those of other loan programs or lenders.

Private Mortgage Insurance is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Private Mortgage Insurance is generally required for a loan with an initial loan to value (LTV) percentage in excess of 80%.

An escrow account is a separate account that holds funds for the purpose of paying bills such as homeowner’s insurance and property taxes. Funds to cover these expenses are deposited into the account each month along with your monthly payment and then pays the bills for you when they come due.