Understanding how overwhelming the process of finding and applying for a mortgage can prove, AmeriSave has created a short glossary of the common terms related to mortgage loans to aid its customers.
Annual Percentage Rate: The offered interest rate on the loan, quoted on a yearly basis.
Closing: The process by which a seller transfers the title to the buyer. At this point, the buyer will pay various closing fees, including charges associated with origination and loan processing.
Debt-to-Income Ratio: A comparison on monthly debt payment to gross monthly income before taxes.
Escrow Account: The lender deposits part of the monthly payments made by the borrower into this account to cover property taxes, mortgage insurance, and homeowners insurance charges.
Mortgage Insurance: A policy that protects the lender from losses if the borrower defaults on monthly loan payments.
Rate Lock-In: A written commitment to a specific APR for a predetermined amount of time before closing.
About AmeriSave: One of the most trusted home loan providers, AmeriSave approves mortgages for customers around the country. AmeriSave ensures that the application process is as quick and transparent as possible for its customers.