Essentially occurs when a borrower makes a minimum payment
that may not cover the interest that is due. Loan balance
then increases as a result.
Effective Income -
Gross income less federal income tax.
Cash-out Refinance -
A refinance transaction that is not intended to put cash
in the hand of the borrower, but instead calculates a
new balance to cover the balance due on a current loan
and any costs with obtaining a new mortgage.
A no-cost loan can either be: 1) a loan that has no "lender
costs" associated with it or, 2) a loan that also covers
purchases or refinancing costs, which may be incurred
in buying a home, obtaining and/or refinancing a loan,
but are not directly charged by the lender. The interest
rate on this type of loan is higher.
A legal document that obligates a borrower to repay a
mortgage loan at a stated interest rate during a specified
period of time.
The stated interest rate on a mortgage note.