Terms Used In The Mortgage Industry
Every industry has its own language and terms. These words and phrases can be confusing to anyone who is not part of the daily operations of a specific sector, and the mortgage business is no exception.
To help you understand the terms, acronyms, and phrases regularly used when purchasing a house or seeking mortgage finance, Victor Matos – Mortgage Agent – Insurance and Investments Advisor has created this handy reference guide. Here you’ll find valuable information allowing you to comprehend and communicate your mortgage needs effectively.
Cost of borrowing
Aside from the interest rate, there are other fees and expenses to consider. When combined, they indicate how much it costs you to borrow money.
Amortization
It’s the number of years it will take you to pay off your mortgage if you keep making the same payments.
Mortgage term
It’s the number of years a particular lender is willing to stay with you on a mortgage contract. Usually anywhere from one to five years.
Pre-payment options
Aside from the regular mortgage payments, it’s the other options that a lender allows you to have if you want to make extra payments towards your mortgage.
Secured interest
It’s a property or part of the property that the lender requires as security to lend you money.
Hidden costs
It’s the other costs that a lender may impose as a condition to lend you money, such as maintenance fees and administration fees.
Credit score
It’s the rating that credit reporting companies use to establish how good of a payer you are. Lenders use this score to determine if they want you as a client and how much to charge you.
Debt load
It’s the number of debts you have accumulated and includes credit cards near their limit and the number of items that you owe money on.
Guarantor or co-signer
It’s a person who is willing to guarantee that you are a good person and will vouch that you will make the mortgage payments.
Legal expenses
It refers to how much it will cost you to proceed with a mortgage.
Disbursements
It’s the items that lawyers need to have and will charge you to register your mortgage.
Lender’s fee
It’s a fee that some lenders charge when approving financing.
Broker’s fee
It’s a fee that mortgage brokers charge clients when lenders do not pay them. It ensures that they get compensated for their work.
Independent legal advice
It’s the legal counseling that lawyers provide clients to ensure that they are aware of the legal obligations that they have committed to fulfill.
Consent form
It’s a document that clients are required to sign to allow mortgage brokers to provide confidential information to prospective lenders.
We hope these terms made you feel more confident to liaise with a mortgage agent.
If you’re looking for a mortgage agent in Hamilton, ON, reach out to Victor Matos – Mortgage Agent – Insurance and Investments Advisor. With many years of experience in the mortgage sector, we render honest advice and excellent customer service.
We also specialize in renewals, refinancing, life insurance, and investment consultancy. So clients can consolidate their debts and plan for a prosperous future all under one roof.
We serve clients across Oakville, Burlington, Binbrook, Ancaster, Brantford, Caledonia, Grimsby, Stoney Creek, Cayuga, Dunnville & St. Catharines, ON.
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