What does ‘Principal’ mean in a mortgage?
Principal refers to the initial mortgage amount taken against the property you mortgaged.
Learning Lab / Category: Mortgage IQ
Category: Mortgage IQ
Buying a new home? Why a ‘Pre-approval’ can help you with your search.
A pre-approval denotes an official letter from the mortgage lender outlining the maximum mortgage amount they are willing to lend you.
Amortization – How to choose between 10 or 30 year options?
When you acquire a mortgage, the lender divides the repayment schedule into several monthly installments over a fixed period.
Definition of ‘Assets’ on Loan Application Form 1003
Assets refer to a wide variety of items you own that have a monetary value.
What is an Escrow?
Escrow refers to a financial account in which the funds are managed by an intermediary like a law firm or dedicated escrow company on behalf of the two parties committed to a dealing or transaction.
What is an Appraisal – and how is it used in a mortgage?
An appraisal is simply an ‘official’ assessment of a property value.
Capitalization Rate or CAP rate – What is it, and how is it used?
In short, a CAP rate on a commercial property is simply a way for investors, lenders, and other real estate professionals to quickly see the strength of the subject property and the likely one year
The Basics of a “1031 Exchange”.
A 1031 exchange is simply an exchange of one investment property for another, where the capital gains taxes on the property sold are deferred.