A Glossary Of Mortgage Terms
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific industry, and the mortgage business is no exception.
To help you understand the terms, acronyms, and phrases regularly used in the mortgage industry, Doria Zacharias has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your mortgage needs effectively.
The length you have the interest rate and payments set for. It is usually five years, but this can be six months to ten years.
The total amount of time you have the mortgage for. It is usually twenty-five years, but this can be between one to thirty years *OAC.
This is the fee a lender will charge if you pay out your mortgage before the agreed-upon term. This is different for each lender.
HELOC stands for Home Equity Line of Credit. This is a line of credit that is tied to the equity in your home. It is only available when you own at least sixty-five percent of your home and on approved credit.
Mortgage Life and Disability Insurance
This insurance is only for your mortgage payments and is not payable to you in a cash payout.
A mortgage broker shops around to find the best mortgage for you. Because everyone is different, every mortgage is different.
This amount is the purchase price minus the down payment plus any CMHC insurance premium that applies.
CMHC Insurance is mortgage balance insurance required by law for anyone purchasing a home with less than 20% down payment.
If you’re looking for a mortgage agent in Grande Prairie, Alberta, reach out to Doria Zacharias. As an Accredited Mortgage Professional (AMP) and Credited Mortgage Professional (CMP), I can find the right mortgage solution for your needs.
I offer home purchase mortgages, mortgage refinancing, first time home buyer mortgages, mortgage renewals, reverse mortgages, mortgage pre-approval, home equity mortgage, and home improvement mortgages to clients across Grande Prairie, Stettler, Lacombe, Red Deer, and Camrose, Alberta.