What is a Fixed Rate Mortgage (FRM)?
A fixed rate mortgage is the most common loan in the United States. In a fixed rate, the loan amount and the interest are amortized or paid equally during the term of the loan with fixed monthly payments. What is an Adjustable Rate Mortgage (ARM)? In an Adjustable Rate Mortgage, the interest rate is tied to a specific economic index and may adjust at specific times. As a result, the monthly payments may go up or down depending on the current interest rate. What is a Private Mortgage Insurance? Private Mortgage Insurance (PMI) is an insurance paid for by the borrower to insure the lender against the borrower’s default or failure to fulfill the terms of the loan. What documents do I need to present with my Request for a Loan? You must provide all documents that will support the information given in your Request for a Loan form. How will the Lender decide the approval of the loan? The Lender will determine the borrower’s ability to pay the loan by comparing his debts and total expenses as
