ADJUSTABLE-RATE (ARM) A mortgage that does not have a fixed interest rate. Based on market conditions, the rate can increase or decrease, affecting your payment.

ESCROW - Monies or documents held by a neutral third party before closing on a property.  It can also be an account held by the lender, set up for the payment of taxes or insurance.

FIXED-RATE LOANS – A mortgage that has a fixed interest rate throughout the life of the loan.  Repayment terms are generally 15, 20 or 30 years.

LOAN ORIGINATION FEES – A fee charged by the lender for processing a loan.

LOCK-IN – A written agreement setting a specific interest rate on a home loan.  The lock-in is typically good for a specific  time, usually 60 to 90 days.

POINTS – These fees are paid to the lender for the loan, usually in relation to the interest rate.  One point is equal to 1 percent of the principal amount of a mortgage loan.

PRIVATE MORTGAGE INSURANCE (PMI) – This fee protects the lender against a loss if a borrower defaults on the loan and is added to the monthly mortgage payment.  PMI is usually required if the down payment is less than 20% of the purchase price.

Looking for a Realtor who is going to go the extra mile with you?  Call me, Brenda Moore, ABR, GRI, REALTOR at 434-258-7670, REAL LIVING CORNERSTONE, FARMVILLE, VA. 23901.  Brenda serves the Lynchburg, Va. area and surrounding Counties.