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Mortgage Glossary
Underwriting Fee - Underwriting is the process of determining the risks involved in a particular loan and establishing suitable terms and conditions for the loan. It includes a review of the potential borrower's credit history and a judgment of the quality of the property. The person who does this is called an underwriter. The underwriting fee covers the cost of evaluating your entire loan package, including your credit report and appraisal, to determine whether the lender can approve your loan request. Typically $195 - $795.
back to topVariable Rate - Interest rate that changes periodically in relation to an index.
Variable Rate Mortgage - Loans with interest rates that are adjusted periodically based on changes in a pre-selected index. As a result, the interest rate on your loan and the monthly payment will rise and fall with increases and decreases in overall interest rates. These mortgage loans must specify how their interest rate changes, usually in terms of a relation to a national index such as, (but not always,) Treasury bill rates. If interest rates rise, your monthly payments will rise. An interest rate cap limits the amount by which the interest rate can change; look for this feature when you consider an ARM loan. The initial rate is the rate charged during the first interval of this loan.
Veterans Affairs (or VA) Loans - Fixed-rate loans guaranteed by the U.S. Department of Veterans Affairs. They are designed to make housing affordable for eligible U.S. veterans. VA loans are available to veterans, reservists, active-duty personnel, and surviving spouses of veterans with 100% entitlement. Eligible veterans may be able to purchase a home with no down payment, no cash reserve, no application fee, and lower closing costs than other financing options. The maximum VA loan amount is currently $203,000.
back to topWalk Through - A final inspection of a home to check for problems that may need to be corrected before closing.
Wire Transfer Fee - On occasion, funds are transferred via the inter-bank wire transfer system to the client, your prior lender, and/or the title insurance company conducting your closing. This fee covers the cost of such transfer.
back to topZoning Ordinances (or Zoning Regulations) - Local law establishing building codes and usage regulations for properties in a specified area.
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