While most real estate web sites offer an index of terms containing hundreds of Miami real estate and lending related terms, we wanted to highlight the top Miami mortgage terms that most Home Buyers will hear several times throughout the mortgage loan approval and home buying process.
Default:
Failure to fulfill an obligation to pay a mortgage.
Delinquency:
Late payments on a monthly liability. Creditors generally report payments to credit bureaus once the delinquency goes past 30 days.
Disclosure:
A big stack of documents that the lender, buyer and sellers sign during a real estate purchase or mortgage transaction. These disclosures may also notify all parties involved of their rights and obligations.
Discount Point:
The amount paid to decrease an interest rate.
Fico Score:
The three credit reporting agencies in the United States, Equifax, Experian, and TransUnion, collect data about consumers used to compile credit reports. The credit agencies use FICO software to generate FICO scores, which are sold to lenders.
Each individual actually has three credit scores at any given time for any given scoring model because the three credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times.
Fixed Rate Mortgage:
A mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”.
Be sure to watch for the next installment for Top Miami Mortgage Terms to Know. If you do have questions between now and then, however, call now and we will answer them for you in a casual conversation about buying a Miami home for sale.
