A mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.
The final lump sum payment due at the end of a balloon mortgage.
A federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.
Biweekly Payment Mortgage
A mortgage paid twice a month instead of once a month, reducing the amount of interest to be paid on the loan.
A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
A short-term loan paid back relatively fast. normally used until a long-term loan can be processed.
A licensed individual or firm that charges a fee to serve as the mediator between the buyer and seller. mortgage brokers are individuals in the business of arranging funding or negotiating contracts for a client, but who does not loan the money. a real estate broker is someone who helps find a house.
An amount paid to the lender so the lender provides a lower rate and lower payments for a fixed period of time at the beginning of the loan.