ABCDEFGHIJKLMNOPQRSTUVWXYZ
 

A

After-tax investment return

The rate of return, after taxes, you could receive if you invested your closing costs and down payment instead of purchasing a home. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2004, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Alternative Request for Approval of Short Sale (ARASS) process

ARASS is a process that allows you to enter HAFA once you've received an offer on your property. You won't need to first fill out a Short Sale Agreement (SSA) or go through the HAFA marketing period. If you're applying for traditional HAFA or HAFA for a Fannie Mae mortgage, you may be able to request an ARASS to speed up the process of selling your property. The Freddie Mac HAFA program does not allow the ARASS process.

Amounts owed/outstanding balances

The total amount you owe on your various types of accounts including credit cards, auto loan, student loan, or mortgage. In general, the smaller your balance to credit limit ratio, the better. Example: $200 owed on $1000 limit credit card (20%) is usually considered better than $500 owed on $1000 limit credit card (50%).

Analysis Statement

Every year an escrow analysis is performed to see whether there are any discrepancies in the account. The results are reported in your analysis statement.

Annual home insurance

The annual amount you expect to pay in homeowners insurance. This amount is divided by 12 to determine the monthly homeowners insurance included in principal, interest, taxes, and insurance (PITI).

Annual property taxes

The annual amount you expect to pay in property taxes. This amount is divided by 12 to determine the monthly property tax included in principal, interest, taxes, and insurance (PITI).

Applied to Escrow

This is the amount of your monthly payment that will be held in your escrow account.

Applied to Interest

This is the amount of your monthly payment that is applied to the interest charge on your loan.

Applied to Principal

This is the amount of your monthly payment that is applied to your principal, or total, loan amount.

Appraisal

Appraisal is the process of determining how much a home is worth-its market value. It also refers to the report establishing the value.

Appraised value

The appraised value is the home's current market price if you are purchasing or refinancing.

Appraised value of your home

This is current appraised value of your home. If it has been a few years since you purchased your home, it may be worth quite a bit more than your original purchase price. The accelerated weekly payment is calculated by dividing your monthly payment by four. You would then make 52 weekly payments. Just like the accelerated bi-weekly payments, you are in effect paying an additional monthly payment each year.

APR

Annual Percentage Rate (APR) is your loan's interest rate plus any other charges like pre-paid interest, closing costs and/or mortgage insurance premiums. APR gives you the "true cost" of your loan.

ARM

An Adjustable Rate Mortgage, or ARM, is a mortgage with an initial fixed rate period, generally 1, 3, 5, or 7 years, after which the rate adjusts for the remaining term of the loan. Rate adjustment is based on the market rate at that time, using an index and a margin.

Association and maintenance fees

Any association fees you are required to pay with the ownership of this home. Also include any other maintenance costs you expect to incur with the ownership of this home that you are not paying while you continue to rent.

back to the top

 

B

Break even

When you have made up the difference between the closing costs and can now save money with the new mortgage this is known as breaking even. The number of months it takes to begin saving after refinancing a mortgage is the break even point.

Breakeven monthly payment savings

The number of months it will take for the total amount of your monthly payment reduction to be greater than closing costs.

Breakeven PMI & interest savings

The number of months it will take for your interest and PMI savings to exceed your closing costs.

Breakeven total savings after-tax

The number of months it will take for your after-tax interest and Private Mortgage Insurance (PMI) savings to exceed your closing costs.

Breakeven total savings vs. prepayment

This is the most conservative breakeven measure. It is the number of months it will take for your after-tax interest and Private Mortgage Insurance (PMI) savings to exceed both your closing costs and any interest savings from prepaying your mortgage. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs.

back to the top

 

C

Calculate balance

To let the calculator determine your remaining balance, based on your original loan information and years remaining, check this box. To enter your own amount, leave this box unchecked.

Questions about a foreclosure that was stopped? Please call:

866-304-4682
Mon - Fri
7 am to 9 pm CT

Trouble making mortgage payments? Please call:

1-800-850-4622
Mon - Fri
7 am to 9 pm CT

Sat
8 am to 2 pm CT

Call us

Call us at 1-877-521-3698, 8 am to 8 pm ET Mon–Thurs, and 8 am to 7 pm ET on Fri.

Call for rates

To get up-to-date rates, please call 1-877-941-4622 Mon through Fri from 8 am to 10 pm ET or Sat from 9:30 am to 5 pm ET.

Cash on hand

Cash you have available for the down payment and closing costs.

Cash out

Cash out refinancing is simply borrowing money from the equity in your home based on its value. For example, if your home is valued at $100,000 and your current mortgage balance is $50,000, you may be able to take $20,000 cash out of the equity in your home when you refinance, resulting in a new mortgage balance of $70,000.

Certificate of Eligibility

The Certificate of Eligibility is an official document called Form 26-1880 issued by the Department of Veteran Affairs that borrowers use to prove they are eligible for a VA-backed loan. Learn more at the Department of Veterans Affairs website.

certified/cashier's check

At closing, you will need a check for the down payment. Most lenders require the down payment be made by certified check or cashier's check. You can get a certified check at any local bank. The bank will verify the funds and then print you a check made out to the lender. Call your Closing Agent or check your HUD statement for the exact amount.

3 credit reporting agencies

There are three top national credit reporting bureaus, or agencies: TransUnion, Experian, Equifax. Banks and lenders typically contact the big three to check your credit. Each bureau, or agency, independantly reports information on you. Together that information is combined to create one complete credit report.

clear conditions

When a loan application requires additional documents to be approved, these are known as conditions. You and your mortgage team will work together to clear the conditions by verifying these documents.

Closing Costs

Closing costs are the fees you pay at or before closing that are required to process, approve and close your loan. They include lender fees, attorney fees, appraisal fees, title fees, pre-paid taxes and other fees.

Comparable Properties

A comparable property (or "comp") is any property that is similar to your home (square footage, number of bedrooms, etc.) that has sold in the past year within a certain distance from your home.

conditionally approved

A conditional approval means that your loan has gone through underwriting and it's been approved with conditions. Typically the conditions mean you need to provide additional documentation or meet certain requests. When these conditions have been satisfied the underwriter will make a final decision about your loan application.

Conforming loan limit

The conforming loan limit is based on average home prices and the maximum loan amount Fannie Mae and Freddie Mac will purchase and/or guarantee. Currently the limit is $417,000 ($625,000 in Alaska and Hawaii). The conforming limit is set every year by the Office of Federal Housing Enterprise Oversight (OFHEO). Loans that exceed the conforming loan limit are called Jumbo loans.

Conventional

A conventional loan is any mortgage that is not guaranteed by any government agency, including the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

Short sale will impact your credit

After completing a short sale, we will report it to the credit bureaus as "account paid for less than full balance".

Deed in Lieu will impact your credit

After completing a Deed in Lieu, we will report it to the credit bureaus as "Deed received in lieu of foreclosure on a defaulted mortgage; there may be a balance due".

HAFA short sale or a HAFA Deed in Lieu will impact your credit

After completing a HAFA short sale or HAFA Deed in Lieu, we will report it to the credit bureaus as "account paid for less than full balance".

Credit Line Agreement

The document you receive when you open a line of credit that explains the rater, terms and amount of credit.

Credit rating

Your credit rating (or credit score) is a numerical value that helps creditors assess your credit risk and is a factor used in determining your interest rate.

Credit is typically rated as follows:
Excellent = 720 or above
Good = 681 to 719
Average = 621 to 680
Fair = 600 to 620
Poor = 599 and below.

Your credit

Your credit rating helps us give you a more accurate rate.
Credit is typically rated as follows:
Excellent = 720 or above
Good = 681 to 719
Average = 621 to 680
Fair = 600 to 620
Poor = 599 and below.

If you don't know your credit rating, please make your best guess. You can also get your credit report for free once a year at AnnualCreditReport.com.

Current Appraised Value

The current appraised value of your home.

Current monthly payment

The total amount paid each month by the borrower which includes the principal and interest of your home loan, taxes, and any insurance (PITI). The insurance is made up of Private Mortgage Insurance (PMI) and homeowner's insurance. If you did not set up an escrow account, taxes and insurance payments will also be included in your monthly mortgage payments.

Current term in years

Total length of your current mortgage in years.

back to the top

 

D

Deed in lieu

A deed in lieu is a potential alternative to foreclosure where the borrower hands over the deed to the mortgage holder in exchange for being forgiven the entire amount of the mortgage.

Default

A homeowner who fails to make mortgage payments or meet other obligations under the mortgage is in default of the loan. Defaulting on your payments can cause you to lose your home. A homeowner at risk of default should contact the lender immediately to discuss options.

Deferred amount

This is the amount of your principal payment you have set aside, or deferred, to pay back later. A loan deferral is typically pre-arranged with your lender as part of a loan modification, to make it easier to manage your monthly payments.

Deferred amount

This is the amount of your principal payment you have set aside, or deferred, to pay back later. A loan deferral is typically pre-arranged with your lender as part of a loan modification, to make it easier to manage your monthly payments.

Deficiency Judgment

A deficiency judgment happens when a lender files a law suit against a borrower for the difference between the amount of the home loan and the amount the lender got for the home through a short sale, foreclosure, or Deed in Lieu. For example, if you owe $200,000 on your mortgage but your house sells for $185,000, and you could be sued for the $15,000 difference.

Under HAFA, if you complete a short sale or Deed in Lieu, you're cleared of any deficiency on your first lien mortgage. Even if you sell your house for less than you owe, you won't have to pay back the difference.

Desired payoff date

This helps us estimate the remaining balance you will owe on the date you expect to pay your loan in full.

Disburse your taxes

If you have an escrow account set up with GMAC Mortgage, we will make the payment for you.

Discount points

Discount points, also called points, is money you pay up front to "buy down" (or lower) the interest rate on your home loan. One discount point will cost you 1% of the loan amount.

Divorce Decree

The legal document granting a termination of your marriage; signed and dated by a judge and court clerk.

back to the top

 

E

Earnest money deposits

Earnest money deposits, also known as a Good Faith Deposit, is a down payment given to the seller by the buyer once the purchase agreement contract is signed that shows that the purchase offer is being made in good faith. If the buyer defaults on the purchase agreement, the seller usually keeps some or all of the deposit.

eDisclosures Package(s)

Important disclosures such as the Good Faith Estimate that you can sign electronically on our secure vendor site.

eDocuments

Important loan documents such as the appraisal that you can view and download from our secure vendor site.

Disclosures package(s)

Your disclosures package includes documents to help explain the true cost of borrowing such as the initial Truth in Lending (TIL) statement and the Good Faith Estimate.

Equity

Equity is the difference between the appraised value of your home and the outstanding principal balance on your mortgage. The amount of equity you have in your home is an important factor lenders consider when you refinance your mortgage.

Escrow

Escrow is the payment made each month to the lender that is used to pay the taxes and insurance due on your home each year.

Your lender may require you or you may choose to set up an escrow account when you close your loan. If so, your lender will add payments for taxes and insurance to your monthly mortgage payment and hold these payments in the escrow account for you. When your taxes and insurance are due each year, your lender will pay them for you from your escrow account.

Escrow account

This account holds the taxes and insurance due on your home.

Your lender may require you or you may choose to set up an escrow account when you close your loan. If so, your lender will add payments for taxes and insurance to your monthly mortgage payment and hold these payments in the escrow account for you. When your taxes and insurance are due each year, your lender will pay them for you from your escrow account.

If you don't set up an escrow account, you will need to pay your property tax bill and your homeowner's insurance in full yourself every year.

Escrow Funds Due

This is the remaining amount due to pay your yearly property and/or insurance taxes in full.

If you set up an escrow account when you closed your loan, your lender will add payments for taxes and insurance to your monthly mortgage payment and hold these payments in the escrow account for you. When your taxes and insurance are due each year, your lender will pay them for you from your escrow account.

Expected adjustment

The amount you believe that your mortgage's interest rate will change. This amount will be added to or subtracted from your interest rate.

Expected inflation rate

What you expect for the average long-term inflation rate to be. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2004. The inflation rate is used to adjust amounts subject to annual increases. These amounts include rent, insurance and tax payments.

back to the top

 

F

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are government sponsored enterprises (GSEs) that have been given a federal charter to purchase mortgages from banks and lending institutions.

Financial Injury

Financial injury means monetary harm to borrowers directly caused by GMAC Mortgage's errors (including miscalculation of fees), misrepresentations or other deficiencies.

File size, type & tips

We can accept .jpg, .tif, .pdf documents less than 50MB. Please be sure to give your file a name you'll remember later. It may take up to a full business day for your recently uploaded files to be posted online. If you don't see them after a day call your Loan Officer at 1-877-941-4622.

File size, type & tips

We can accept .jpg, .tif, .pdf documents less than 50MB. Please be sure to give your file a name you'll remember later. It may take up to 2 business days for your recently uploaded files to be posted online. If you don't see them after a couple of days, please call your Relationship Manager.

Fixed monthly payment

A fixed monthly payment means that the principal and interest portion of your monthly payments remain the same throughout the life of the loan.

Fixed Rate Mortgage

A mortgage in which the interest rate and monthly principal and interest payments remain the same for the life of the loan.

Flexible income and credit qualifications (FHA)

Flexible income and credit qualifications for FHA loans means the lender can use a wide variety of criteria to prove you would be a good borrower for this loan. Often first-time homebuyers, small business owners, and those who receive income on a commission base benefit choose this loan because of the low downpayment, flexible income, and credit requirements.

Fully Assessed

The full value of the property or market value must be assessed to determine the tax rate. If the property is not fully assessed, the tax rate may change once a full assessment is done.

Future sales commission

The percent of your home's selling price you expect to pay to a broker or real estate agent when you sell your home.

back to the top

 

G

back to the top

 

H

Home Affordable Foreclosure Alternatives (HAFA)

Home Affordable Foreclosure Alternatives (HAFA) is a government-sponsored program that helps homeowners who are struggling with their mortgage payments but did not qualify or were denied for a HAMP loan modification. With HAFA, you could settle your mortgage debt with a short sale or Deed in Lieu. The HAFA program became effective April 5, 2010 and ends December 31, 2013.

Have a 2-, 3-, or 4-unit property?

For HAFA programs, your mortgage balance needs to be less than or equal to $934,200 for a 2-unit property, $1,229,250 for a 3-unit property, or $1,403,400 for a 4-unit property.

Home Affordable Modification Program (HAMP)

The Home Affordable Modification Program is a government-sponsored program that helps homeowners who are struggling with their mortgage payments. If you qualify for HAMP, you could get help with a loan modification, which adjusts your interest rate and monthly payment for a period of three monthly mortgage payments. If you are not eligible for a HAMP modification, you may be able to get a traditional loan modification, which could potentially lower your payment.

Hardship

Some examples of a hardship are:

HARP

Home Affordable Refinance Program

Home appreciates at

Annual appreciation you expect in the home you are purchasing.

Home insurance rate

Your homeowner's insurance rate. Example: 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.

Customer service hours of operation

Mon through Fri from 6 am to 10 pm CT or Sat from 8 am to 2 pm CT

Sales hours of operation

Mon through Fri from 8 am to 10 pm ET or Sat from 9:30 am to 5 pm ET

Sales hours of operation

Mon through Fri from 8 am to 10 pm ET or Sat from 9:30 am to 5 pm ET

Hours of operation

8 am to 8 pm ET Mon–Thurs, and 8 am to 7 pm ET on Fri

Hours of operation

Mon – Fri from 8 am to 9 pm CT or Sat from 8 am to 2 pm CT

Hours of operation

Mon – Fri from 8 am to 5 pm CT

House payment

The total amount paid each month by the borrower which includes the principal and interest of your home loan, taxes, and any insurance (PITI). The insurance is made up of Private Mortgage Insurance (PMI) and homeowner's insurance. If you did not set up an escrow account, taxes and insurance payments will also be included in your monthly mortgage payments.

How can I find out if my home is owned by Fannie Mae or Freddie Mac?

To find out if your loan is owned by Fannie Mae or Freddie Mac, please call or visit the links below.
Fannie Mae
1 800 7FANNIE (8am to 8pm ET)
www.fanniemae.com/loanlookup

Freddie Mac
1 800 FREDDIE (8am to 8pm ET)
www.freddiemac.com/mymortgage

HUD-1

The HUD-1 Settlement Statement lists your actual costs and fees due at closing. It includes a chart you can use to compare certain fees in your Good Faith Estimate with the actual closing costs in your HUD-1, that way you can see if everything matches up.

HUD-1 Settlement Statement

NEED CONTENT

Your credit

Your credit rating helps us give you a more accurate rate.
Credit is typically rated as follows:
Excellent = 720 or above
Good = 681 to 719
Average = 621 to 680
Fair = 600 to 620
Poor = 599 and below.

If you don't know your credit rating, please make your best guess. You can also get your credit report for free once a year at AnnualCreditReport.com.

How will you pay property tax?

When you close your home loan, you can add escrow (taxes and insurance) to your monthly mortgage payment or pay them yourself once a year.

If you pay by escrow, you don't have to worry about having the money to pay your taxes out of pocket. Your lender will add these fees to your monthly payment and deposit them into an escrow account for you. When your taxes are due, your lender will pay them for you from your escrow account.

If you don't want taxes and insurance included in your monthly payment, you will need to pay your property tax and insurance bill in full yourself.

back to the top

 

I

I don't know my credit rating

If you don't know your credit rating, please select a category based on how well you manage your finances. You can also get your credit report for free once a year at AnnualCreditReport.com.

Income tax rate

The amount of taxes you pay each year based on your income tax bracket.

Installment Loans

A loan that is repaid with a fixed number of periodic equal-sized payments.

Interest rate

A mortgage interest rate is the percentage of interest you pay a bank or financial company to have a home loan. Generally the lower the rate, the less you pay to the bank over time.

Interest rate cap

This is the highest interest rate allowed on your mortgage. Your actual interest rate will not be adjusted above this rate.

back to the top

 

J

back to the top

 

K

back to the top

 

L

Late Charge

If you have any late charges, this will be added to your total payoff amount.

Leaving site

You are leaving the GMAC Mortgage website. You are proceeding to a website that is not affiliated with GMAC. GMAC disclaims and has no control or responsibility for the Web content, products, information, services, or advice provided by other websites. By selecting continue you acknowledge that you have read and understand this disclosure.
Continue
Return to GMAC Mortgage

Lender

Length of your credit history

The length of time you've had a credit history can affect your credit score. Generally speaking, the longer you maintained a good credit history, the better your credit score.

Listing Agreement

The listing agreement is a contract that allows your real estate agent to list your home for sale.

Loan amount

The amount of money you borrow to help finance a property.

If you are buying, subtract your down payment from the home's sale price to get your loan amount.

If you are refinancing, your loan amount will be the current balance on your mortgage plus any cash you want to take out (assuming there is sufficient equity in the property).

Loan balance

The remaining amount you owe, balance, on your mortgage.

Loan origination rate

This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. Typically this fee is 1% of the loan balance.

Loan to value ratio

The loan to value ratio is the amount you are asking to borrow divided by the value of the home. For example: an 80% loan to value ratio would allow you an $80,000 loan for a home appraised at $100,000.

back to the top

 

M

MIP

A mortgage insurance premium (MIP) is the monthly insurance that your lender requires for a government backed loan like the FHA and VA if your down payment or equity is 20% or less than the value of the home. This insurance protects the lender in case you default on your loan.

MLS

Multiple Listing Service (MLS) provides information about a property such as listing price, taxes, and square footage.

Miscellaneous Fees

These fees include any additional charges, taxes or other costs included in your loan at closing.

Monthly mortgage payment

Your monthly mortgage payment is made up of principal, interest, taxes, and insurance (often referred to as PITI). If you have Private Mortgage Insurance (PMI) that will also be included in your monthly mortgage payment.

Monthly payment

The total amount paid each month by the borrower which includes the principal and interest of your home loan, taxes, and any insurance (PITI). The insurance is made up of Private Mortgage Insurance (PMI) and homeowner's insurance. If you did not set up an escrow account, taxes and insurance payments will also be included in your monthly mortgage payments.

Monthly payment (PITI)

The total amount paid each month by the borrower which includes the principal and interest of your home loan, taxes, and any insurance (PITI). The insurance is made up of Private Mortgage Insurance (PMI) and homeowner's insurance. If you did not set up an escrow account, taxes and insurance payments will also be included in your monthly mortgage payments.

Monthly PI

Monthly principal and interest payment.

Monthly PMI

If your down payment for your loan is less than 20% of the appraised value or sale price, your lender may require that you pay for private mortgage insurance (PMI). PMI is paid monthly and protects the lender if you default on your loan.

Monthly rent payment

The amount you currently pay for rent each month.

Months before first adjustment

This is the number of months that the interest rate is fixed on an adjustable rate mortgage (ARM). After this time has passed the interest rate will be subject to rate adjustments. If you enter zero in this field, we assume that the rate will begin making adjustments after the initial period of time between adjustments has passed. If any number other than zero is entered, the first adjustment will take place at that time, and adjustments will happen at the frequency entered in the "months between adjustments" field.

Months between adjustments

The number of payment periods between potential adjustments to your interest rate. The most common is 12 months, which means your payment could change at most once per year.

Mortgage amount

Original or expected balance for your mortgage.

Mortgage term

The number of years over which you would repay this loan if you made the minimum monthly principal and interest payment. The most common terms for mortgages are 15 years and 30 years.

Mortgage/deed of trust

This legally binding document states that you pledge your house as security for repayment of your home loan. You are agreeing to give up your property to the lender if you cannot make your mortgage payments or otherwise default on your home loan.

Mortgage-backed security

A mortgage-backed security (MBS) is a bond made up of a pool of mortgage payments. Investors buy mortgage-backed securities and use the returns from them to fund more mortgages. Lenders set their interest rates based on how well mortgage-backed securities are performing in the market.

Mortgages you owe

This is the total of all outstanding mortgages on your home. This should include your first mortgage, second mortgages and any other debt that is secured by your home.

back to the top

 

N

Net home price

Net selling price of your home after subtracting any sales commissions.

Net house payment

Your house payment minus the value of the tax deduction and principal payment.

New credit

The number of recently opened accounts and the types of accounts are factored into your credit score.

New interest rate

The annual interest rate for the new loan.

New payment

The total amount paid each month by the borrower which includes the principal and interest of your home loan, taxes, and any insurance (PITI). The insurance is made up of Private Mortgage Insurance (PMI) and homeowner's insurance. If you did not set up an escrow account, taxes and insurance payments will also be included in your monthly mortgage payments.

New term in years

Number of years for your new loan.

Notice of Periodic Adjustment

The official notification of interest and payment changes to your Adjustable Rate Mortgage.

Number of payments

This is the total number of scheduled payments for the loan.

back to the top

 

O

Obtained judgment

If you have missed mortgage payments and your lender has gone to court to obtain a legal judgment against you, the judgment entitles your lender to legally pursue you for repayment of what's owed.

Optional Products

These include any additional products you've added to your mortgage payment, such as credit life insurance or disability insurance.

Original mortgage amount

Original amount of your mortgage.

Other closing costs

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees, and any other miscellaneous fees paid.

back to the top

 

P

Password tips

Some things to remember:

Payment

Payment for this loan.

Payment history

Your payment history is a record of all payments to creditors. The better your record of paying your bills on time, the more responsible you look to lenders, which can be good for your credit score.

PMI

If your down payment or available equity is less than 20% of the sale price or appraised value, your lender may require you to pay Private Mortgage Insurance (PMI). PMI is paid monthly and insures the lender against loss if you default on your loan.

Points paid

This is the number of points paid to the lender to reduce the interest or "buy down" the rate on the mortgage. Each point costs 1% of the new loan amount.

Pre-paid interest

Pre-paid interest is interest you pay from the day you close your loan to the first day of the next month. If you close on the 20th of a 30-day month, you'll pay 10 days of pre-paid interest before you make your first mortgage payment.

Prepayment amount

The amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.

Prepayment penalties

Some lenders charge you a penalty fee if you pay off your loan before the end of the term such as paying off your mortgage in a lump sum payment or paying more in your monthly mortgage payments.

Prepayment type

The frequency of prepayment. The options are: none, monthly, yearly, and one-time payment.

Price of home

Purchase price of the home you wish to buy.

Principal

This is the amount of your loan. If you borrow $100,000, your principal amount is $100,000.

Principal payment

Total of principal paid per month on your mortgage.

Promissory Note

This is your promise to pay your mortgage. The promissory note tells you what the principal and interest payments are, when they are due, where to send them, and what penalties will occur if you don't pay.

Property tax rate

Your property tax rate is a percentage of your home value. For example: 1% for a $100,000 home equals $1,000 per year in property taxes.

Property type

Please select the type of property you want to purchase or refinance.

Property value

The property value is the home's market price, if you are purchasing, or its current fair market value if you are refinancing.

If you don't know the property value, you can estimate it using the sales prices of similar homes in your area.

back to the top

 

Q

back to the top

 

R

Rate Caps

Rate caps limit the amount your interest rate can increase year over year or for the life of the loan.

Capitalization of Arrearages

With the GMAC Loan Modification program we'll help you get back on track. We'll simply add any outstanding balance to the new principal loan balance to bring your loan current.

Reported Delinquency

Missing mortgage payments or going into foreclosure are examples of actions that could be reported in your credit report as delinquent.

back to the top

 

S

Savings

Total amount of interest you will save by prepaying your mortgage.

Second lien

A second lien is a lending agreement that comes second to your primary mortgage. It could be a second mortgage, a home equity line of credit, or a loan that you take out to help make your down payment. If you default on your primary mortgage, or file bankruptcy, you'll also have to settle with your second lienholder.

Secondary income

Secondary income is any income from sources other than your job or primary source of income, such as alimony, child support or separate maintenance agreements (not required if you do not wish to have that income considered).

Seller contribution

A seller contribution is the amount a seller may be asked to pay to help make up the difference between the amount owed on their loan and the amount the property sells for. For example, if you owe $200,000 on your home loan and you sell your home for $185,000, then the seller contribution (amount you may be asked to pay) could be $15,000. If you sell your house through a HAFA program, a seller contribution is not required.

Short Sale Agreement (SSA)

The SSA defines the terms and conditions of a short sale, like the listing agreement and information about what's expected of the borrower and the servicer during the HAFA short sale process. The SSA is generally completed before a house is listed for short sale through HAFA, but some people are able to enter into a short sale without first filling out the SSA (see Alternative Request for Approval of Short Sale).

Start with payment

You have the choice of making a payment before your first loan payment. To signify you wish to make a prepayment enter a zero into the field.

If you would rather make additional payments during the term of your loan enter a number greater than zero.

Example: If you want to make an additional payment each year enter a 1 into the field. If you do this you will make a total of 13 payments annually instead of 12. Over time this will reduce the length of your loan and save you money in interest payments.

Starting interest rate

Initial annual interest rate for this mortgage.

Starting monthly payment

Monthly principal and interest payment (PI) based on your beginning balance and starting interest rate.

subordination agreement

A subordination agreement is a document between two lenders that states the holder of the superior lien (usually the older loan) agrees to lower the priority so that the new loan has the higher priority in a payoff or foreclosure situation.

Supplemental insurance

This additional insurance protects against damages your homeowner's insurance policy doesn't cover, such as flood, natural disasters, neglect, etc.

back to the top

 

T

Tax savings

The value of the tax deduction you receive on your mortgage's interest and home's property taxes. For example: if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $280. (At a tax rate of 28%).

Taxes you may owe

We suggest contacting a tax professional for more information on the taxes you could owe if a portion of your loan is written off. You can also refer to the sections on "Foreclosures and Repossessions" and "Abandonments" in the IRS Publication 544, "Sales and Other Dispositions of Assets."

Term

Number of months for this loan.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Third party

A third party is an outside company you or your lender hires to complete a service required to close your loan. The associated cost is called a third party fee.

Total closing costs

Closing costs are the fees you pay at or before closing that are required to process, approve, and close your loan. They include lender fees, attorney fees, appraisal fees, title fees, pre-paid taxes, and other fees.

Total for down payment

Total funds remaining for down payment.

Total interest

The total interest is the amount of interest paid over the full term of the mortgage, assuming you do not make extra payments towards your principal.

Total payments

The total payments is the amount paid from monthly payments over the full term of the mortgage, assuming you do not make extra payments towards your principal.

Truth in Lending (TIL)

Your lender will mail a Truth in Lending (TIL) statement to you when you complete your application and again at closing. Your TIL includes, at a minimum, the amount financed, your annual percentage rate, your total payments and the finance charges in connection with your loan.

Types of credit

Some of the main types of credit are mortgages, car loans, and credit cards. Having a variety of loans could help your credit score.

back to the top

 

U

UMIP

An upfront mortgage insurance premium (UMIP) is a one time insurance fee required for a government backed loan like the FHA if your down payment or equity is 20% or less than the value of the home. This insurance protects the lender in case you default on your loan.

Unapplied Funds

These are partial payments or overpayments on hold until enough money is received to complete a full mortgage payment.

Uncollected Principal & Interest

This is the amount you owe on any payments you made that were less than the amount due.

underwriters

Underwriters review and validate your loan package to make sure it fits the guidelines required for your loan program.

Username & password tips

Your username and password are case sensitive and each must be between 8 - 26 characters. You can use letters, numbers, plus special characters "-" and "-". Other tips

Username tips

Your username:

back to the top

 

V

VA eligibility

VA funding fee

The VA funding fee is the amount the Department of Veteran Affairs charges eligible members of the armed forces to guarantee a VA home loan.

VA Loan

A loan guaranteed by the Department of Veterans Affairs.

Valid ID

Driver's License, Passport, or Military ID

Valuation

This is the property's estimated value, based on the Broker Price Opinion (BPO). A BPO is based on factors like value and sales trends for similar properties in the area.

back to the top

 

W

What is a Reservation ID number?

If we sent you a Reservation ID number by mail, please locate the ID on the mail you received and enter it here.

What is the different between prequalification and preapproval?

Please choose a category that best matches the document you are uploading:

When would you like to close?

If you already have a contract on a home, enter the closing date on your paperwork here. If you don't have a contract, leave this field blank.

Where do I enter my password?

We will ask for your password immediately after you submit your username. This extra layer of security helps us keep your online accounts safe.

Why do we ask for your Social Security number?

We require your Social Security number to check your credit history as part of the loan process. However, we will not check your credit history until you speak with your Loan Specialist and give us permission to do so.

back to the top

 

X

back to the top

 

Y

Years remaining

Number of years remaining on your current mortgage.

back to the top

 

Z

back to the top