Fieldstone Communities Mortgage

Mortgage Loan Terms

Adjustable Rate Mortgage (ARM)
A mortgage with an interest rate that changes over time per movements in the index. ARMS are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).

Annual Percentage Rate (APR)
The sum of finance charges (interest, loan fees, points) expressed as a percentage of the loan amount.

Closing Costs
A sum paid by borrowers and sellers to complete the closing of a mortgage loan. Costs may include the loan origination fee, discount points, title insurance, Escrow fees, document recordings fees, and prepaid Escrow payment.

Deed of Trust
A document whereby the owner of real property uses that property as security for the payment of a note or other obligation.

Escrow
An impartial third party which acts as agent for both seller and buyer to carry out instructions, deliver papers and documents, and disburse funds.

Impound Account
A savings account held in trust by the lender in which the borrower places monthly deposits for taxes, insurance, and/or other purposes.

Loan-to-Value Ratio
The relationship between the amount of the mortgage and the appraised value of the property, expressed as a percentage of the appraised value.

PITI
Principal, Interest, Taxes, and Insurance

Private Mortgage Insurance (PMI)
Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.

Cash Available
The amount of money available for your down payment, closing costs, and cash reserves.

Contingency
Anything that will prevent you from closing your loan immediately. For example: a home to sell, a home to rent, Stocks and/or Bonds that need to be cashed in, 401k funds that are not in the bank and available for use, gift monies that have not been received, etc.