Mortgages & Loans

A home equity line of credit is a specific line of credit that you apply for and then can reuse at your discretion. The equity in your house is used as collateral. Interest expense is calculated on the outstanding balance, not the maximum credit line negotiated. Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A. A home equity loan is a total amount negotiated with the bank. Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A.

A home equity line of credit is a specific line of credit that you apply for and then can reuse at your discretion.
The equity in your house is used as collateral. Most line of credits allow disbursements by checks or credit card. Interest expense is calculated on the outstanding balance, not the maximum credit line negotiated.
Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A.

The (ABA)American Banking Association routing number is a unique, bank identifying number that directs electronic deposits to the proper bank. This number precedes the account number printed at the bottom of a check and is usually printed with magnetic ink.

A Builder buy down loan is a mortgage loan on newly developed property that the builder subsidizes during the beginning years of the development.
The builder uses cash to buy down the mortgage rate to a lower level than the prevailing market loan rate for a period of time. The typical buydown is 3% of the interest rate amount for the first year, 2% for the second year, and 1% for the third year. This type of loan is often referred to as a 3-2-1 buydown loan.

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.

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.

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.

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.