8300 Carmel NE
Albuquerque, NM 87109
505-292-2021
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Albuquerque Real Estate

Mortgage Terms and Definitions
When you first apply for a mortgage loan, it can seem as though there is a whole new language to learn. Below are some of the common mortgage terms, aloong with a plain-English explanation of what each term means.

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Amortization
The periodic principal pay down of a loan.
APR (Annual Percentage Rate
The actual cost of a mortgage expressed as a yearly rate. This is usually HIGHER than the advertised rate for the mortgage because it takes into account the points paid, and other costs of credit.
ARM (Adjustable Rate Mortgage
A mortgage in which the interest rate is adjusted, usually annually, based on a preselcted index.
Balloon Payment Mortgage
A mortgage which involves small payments, usually monthly, for a set period, with the entire remaining principal balance of the loan coming due at a specified time.
Caps on interest
Consumer safeguards which limit the amount the interest on an adjustable rate mortgage can increase in a given year, or over the lifetime of the loan.
Certificate of Eligibility
A document provided to qualified veterans that entitles them to a VA loan.
Closing
The meeting at which the property and funds actually change hands
Construction Loan
A short-term loan for financing the cost of construction for a newly built home.
Conventional Loan
A mortgage not insured by FHA or guaranteed by the VA.
Credit Report
A report documenting the borrower's credit standing.
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Albuquerque, NM Homes and Land
2511 Schell, Albuquerque
MLS#656610 Listed at: $500,000
4BR, 4.00BA, 3075 Square Feet
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Blythe Camenson
(505)450-7448
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CENTURY 21 Camco Real Estate Agents
Albuquerque Real Estate News
A Great Place to Live
U.S. News & World Report magazine looked at areas with strong economies, low living costs, and plenty of fun things to do to identify this year's best places to live.
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