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Home Dictionary G Good Faith Estimate (GFE) Good Faith Evaluation (GFE) details a fair assessment of the expected fees, costs, and conditions associated with a potential mortgage. GFEs now only apply to reverse mortgages, with similar credit assessment forms being introduced for other home loans. Borrowers must be provided with GFE within three business days of application. You can take a closer look and get several ratings before choosing a loan or lender. The costs shown on the form are estimates and may not always be accurate. 125% Loan
September 25, 2022 A loan at 125% is a mortgage loan equal to 1.25 times the value of the property securing the loan. 2-1 Buydown
September 25, 2022 A 2-1 buyout is a type of financing that lowers the mortgage interest rate for the first two years before it rises to a regular, constant rate. 2/28 Adjustable-Rate Mortgage (2/28 ARM)
September 25, 2022 2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years. 3-2-1 Buydown Mortgage
September 25, 2022 With a 3-2-1 buyout mortgage, the borrower pays a lower interest rate for the first three years in exchange for an upfront payment to the lender. 3/27 Adjustable-Rate Mortgage (ARM)
September 25, 2022 The 3/27 Adjustable Rate Mortgage (ARM) is a 30-year mortgage with a three-year fixed rate period. 5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM)
September 25, 2022 Adjustable Rate Hybrid Mortgages (ARM) 5/1 offer an initial fixed rate for five years, after which the interest rate is adjusted annually. 60-Plus Delinquencies
September 25, 2022 An arrears rate of more than 60 is a metric commonly used to measure the number of mortgages that are more than 60 days overdue on monthly payments. 80-10-10 Mortgage
September 25, 2022 An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash. Adjustable-Rate Mortgage (ARM)
September 25, 2022 An adjustable rate mortgage (ARM) is a home loan with an interest rate that may fluctuate from time to time based on a certain benchmark. Appraisal
September 25, 2022 An appraisal is an estimate of the fair market value of a property, business, antique, or even a collectible. Assessed Value
September 25, 2022 An appraised value is the dollar value assigned to a home or other piece of real estate for property tax purposes. Assumable Mortgage
September 25, 2022 A prospective mortgage is an agreement whereby the outstanding mortgage and its terms can be transferred from the current owner to the buyer. Chattel Mortgage
September 25, 2022 A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property. Conventional Mortgage
September 25, 2022 A conventional mortgage or conventional loan is a homebuyer’s loan that is not offered or secured by a government agency. Deed Of Reconveyance
September 25, 2022 The deed of transfer is issued upon full payment of the mortgage loan. Deed of Release
September 25, 2022 The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid. Down Payment
September 25, 2022 A down payment is money paid up front for a financial transaction, such as buying a house or car. FHA 203(k) Loan
September 25, 2022 An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home. Federal Home Loan Bank System (FHLB)
September 25, 2022 FHLB is a network of 11 regional banks that provide cash to other banks to keep money flowing to consumers and businesses. First Mortgage
September 25, 2022 The first mortgage is the underlying lien that secures the mortgage. Fixed Interest Rate
September 25, 2022 A fixed interest rate avoids the risk that your mortgage or loan payment may increase significantly over time. Fixed-Rate Mortgage
September 25, 2022 A fixed rate mortgage is a home loan with a fixed interest rate for the life of the loan. Floating Interest Rate
September 25, 2022 A floating interest rate is an interest rate that changes periodically, as opposed to a fixed (or constant) interest rate. Forbearance
September 25, 2022 Patience is a temporary deferment of loan payments provided by the lender, instead of forcing the borrower into foreclosure or default. Freddie Mac
September 25, 2022 Freddie Mac is the official nickname of the Federal Home Mortgage Mortgage Corporation (FHLMC).