Mortgage Terms Co-de

By Author: Matthew Kennedy
Total Articles: 8
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If you're considering refinancing or getting a mortgage, you probably already know that there is a lot of industry jargon that is unfamiliar to all but insiders; mortgage lenders, real estate agents, appraisers and so on. However, understanding these terms can put mortgage borrowers in a much stronger position for negotiations and overall success of the entire process. In this installment of Mortgage Terms, we'll discuss critical terms that you should know starting with Co-Borrower and ending with Debt Consolidation.Co-BorrowerSome mortgage loans have more than one borrower. Each is called a Co-Borrower, and each has equal responsibility for repaying the loan according to terms. Co-Borrowers may occur in a domestic union, between family members, investment partners, unmarried couples, or even just friends.CollateralCollateral is some type of asset used to secure a loan. In most mortgage lending cases the collateral is the home and property in question. However, in some cases other properties or assets may be used to secure a loan. This is useful for "short fuse" opportunities and properties that don't offer enough collateral ...
... to support the loan requested.Construction FinancingIf you're looking to buy a home, then you need a mortgage loan. But if you're looking to build your own home, you need Construction Financing. While similar to a mortgage, there are a number of differences that you should be aware of. Call a professional construction financing lender to find out how to qualify and what steps to take.Conversion OptionSome Adjustable Rate Mortgages come with the option to convert the loan to a Fixed Rate Mortgage after a certain period. This is particularly useful if your income situation is going to change prior to paying off the loan - especially if you'll be settling in to a fixed income.Credit Report and ScoreYour credit report and score are widely considered to be the most important determining factors in what loan you ultimately get. Credit reports contain your complete history of accounts: who you owe money to, how you pay them, if you've ever been late, had a charged-off or collections account, have tax or other liens, and so on. All of these factors are awarded a certain mathematical "weight," and are used as part of a complex algorithm to assign a "rating" factor based on the probability that you will repay your loans. This rating factor is known commonly as a credit score.Current Projection RateBefore a rate adjustment occurs on an Adjustable Rate Mortgage, you can calculate what the rate would be if the adjustment happened now, and use that as a gauge to determine what the rate could be at the next adjustment. In most cases, the closer the adjustment date to the date the CRP calculation is made, the more accurate it will be, depending on market conditions.Debt ConsolidationSome people opt to refinance or get a mortgage loan that is large enough to completely payoff all their other debt: credit cards, student loans, automobile loans, etc. For many people with revolving debts and high interest rates, it makes sense to use the typically lower rate mortgage to pay these items off.In the next article in this series we'll discuss the next set of terms related to getting a mortgage in an effort to help empower you to get the best loan possible for you and your family. To learn more or to get an immediate quote, call a professional mortgage firm now, or fill out a simple online application. The sooner you know what to expect, the sooner you can start planning your new home or refinance.