Home Ownership

The Certificate of Occupancy also referred to as the "CO" is a written authorization given by a municipality that allows a structure (house) to be inhabited. Many municipalities only require a Certificate of Occupancy for new construction or improvements. Some require a Certificate of Occupancy anytime title to the property changes.

Currently, there is no set 20% amount that you must put down. Some first time home buyer programs require as little as 5% down. In the past, mortgage lenders most often did require a 20% down payment. Generally, in the last 10 years many loan programs have been designed to help more people buy homes. Mortgage loans can now be tailored to fit each home buyer’s needs and financial resources. *For down payments of less that 20%, mortgage insurance (MI) will be required and associated costs will apply.

The Payment to Income ratio is the ratio of the borrower's total housing payment including the principal, interest, taxes, insurance, additional fees, special assessments, and subordinate financing divided by the borrower's income. It is used to measure the borrower's capacity to manage the housing expense. This is also known as the "Housing Debt to Income ratio."

A home equity loan is a mortgage on the your principal residence or second residence or vacation home.
You are tapping into the built up equity in your house. It usually is for the purpose of making home improvements or other non-housing expenditures such as credit card debt consolidation or tuition.
This is a closed end loan repayable in accordance with a fixed payment schedule.

A mortgage closing is a process of finalizing the purchase of property or making of a mortgage loan. For refinances and home equity lines of credit and loans, monies are disbursed after the 3 business day rescission period has expired. Generally, for home equity lines of credit, checks are generally sent to the borrower 8 to 10 business days after closing. Closing costs are costs payable by either seller or buyer at the time of settlement when the purchase of a property is finalized, or by borrower when a loan is refinanced. They include expenses such as points, taxes, title insurance, mortgage insurance, recording fees and attorney fees. You will receive additional specific information about the types and amounts of closing costs applicable to your specific transaction when you apply for your loan.

A Graduated Repayment option is a repayment option that allows for interest only payments for the first couple of years, usually two or up to four years. It can lower initial monthly payments by as much as 35 to 45 percent.

Forbearance ia an authorized period of time during which the loan holder allows the borrower to delay repayment because of financial difficulty.

A Cosigner is a creditworthy individual or entity, other than the borrower, who assumes responsibility for repaying a loan in the event the borrower does not pay.

An adjustable rate mortgage is a variable rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. To limit the borrower's risk, the Adjustable rate mortgage may have a payment or rate cap. An example of this is if the mortgage has a annual cap of 2 % and a total cap of 13%. This means the mortgage can only increase by 2% maximum each year and could never exceed the 13% maximum ceiling.