Margin—a number, normally a percentage, included to the index to define the interest rate for flexible rate mortgages.
Minimum Payment—the smallest amount you should pay, frequently every month, on a credit line or home equity loan. In a number of plans, the smallest amount can be simple interest; in others, the smallest payment can involve interest and principal.
Mortgage Insurance—insurance bought by the borrower to cover the lender or the government against loss if you fail to pay.
Mortgage Loan—a loan that uses real estate as guarantee to give for settlement if you fail to pay on your loan terms.
Points—the sum paid either to uphold or decrease the set interest rate.
Prepayment Penalty—a charge paid to the lending establishment for paying off a loan before the
agreed maturity date.
Right to Rescission—the official right to terminate your mortgage agreement handling the contract as if it never was real. Right to cancellation is not appropriate to mortgages completed to buy a house, though can be appropriate to other mortgages, for example, home equity loans.
Security Interest—an interest, which a lender obtains from the borrower’s property to guarantee a debt settlement.
Title—the written confirmation, which shows the right to possession of a particular portion of property.
Transaction Fee—a charge that may be set every time you resort to a home equity credit line.
Underwriting—the process of proving information and endorsing a loan.
Variable Rate—an interest rate, which varies recurrently according to an index. Payments can rise or fall consequently.
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