A rule that lenders use to determine whether a person’s alimony and/or child support income can be used to help them qualify for a loan. The rule states that the support income must have been paid consistently for the past six months, and will continue to be paid to the spouse for a minimum of […]
A chart that shows how mortgage payments will affect mortgage debt over time. It outlines how much of a given mortgage payment will go toward principal and interest (PI) at the start of the loan, as well as outlining the changes in how those payments will be applied as the mortgage matures. Learn more about amortization.
Performed by a certified appraiser, an appraisal is the detailed, official property evaluation required by most lenders before they will issue final approval for a loan. It includes physical measurements of the land and structures, sometimes includes permit and zoning research, and always contains detailed information about the suitability and value of the home. See also: […]
A mortgage loan that carries a variable interest rate. The rate can (and usually does) vary throughout the term of the loan, making the monthly amount due unpredictable. Learn more about the different types of ARMs at Investopedia.