Is Cash From a Refinance My Money?

The equity is value in the home. Cash you take out is borrowed, and you pay it back with the new loan. It is not a gift and it is not income.

What Are Closing Costs?

They are the fees and prepayments due when the loan is finished. They can include the appraisal, title work, and early deposits for taxes and insurance. Any calculator figure on this site is an illustration from numbers you enter.

Will Talking With a Loan Officer Change My Credit Score?

A conversation does not, by itself, change your credit. If you later ask for a credit check, that check can show on your credit report. Your loan officer should tell you before they run one.

What If My Credit Is Not Perfect?

You can still have the conversation. Credit is one part of a file, along with income, savings, and the home. No score on this site is a cutoff, and no score is a promise of approval.

Who Can Ask About a Doctor Loan?

Eligible physicians, and sometimes other medical professionals named by the program. The loan can cover a high share of the price. This site does not state that share. The job and the file still have to be reviewed.

What Is Down Payment Assistance?

It is help with the cash you need to buy a home. A city, a state, or another program may offer a grant or a second loan. It is local, it can run out of funds, and it does not replace the review of your income and credit.

I Owned a Home Years Ago. Am I a First-Time Buyer?

Sometimes. Some programs look at whether you have owned a home in the recent past, not only whether you have ever owned one. A loan officer can check the rule that applies to the program you are asking about.

How Long Does It Take From Offer to Keys?

A purchase often takes about a month to six weeks after a contract, and it can be shorter or longer. Appraisal, title work, and extra questions are the usual reasons a file slows down.

It is a rent-to-payment ratio used on some investment loans. It compares rent the property may earn with the payment. It is one part of a review, not an approval.

What Makes a Loan Jumbo?

The loan amount is above the conforming limit for that county. Limits change by place and by year, so this site does not print a dollar cutoff. A loan officer looks up the current limit.

What Is Mortgage Insurance?

It is a cost some loans add when the down payment is smaller. It protects the lender, not you. It can be part of the monthly payment. Ask whether your loan would include it before you compare payments.

What Records Can a Non-QM Loan Use?

Some non-QM loans look at bank statements or other records instead of a traditional pay stub. The review is different, not easier. Credit, the home, and cash still matter.

What Is a Pre-Approval?

A pre-approval is a lender review of your income, assets, and credit before you have a signed contract on a home. It is stronger than a guess, and it is still not a promise that the loan will close. The home and the final documents still matter.

What Does Break-Even Mean on a Refinance?

Break-even is how long it takes for a lower monthly payment to cover the closing costs of the new loan. If you sell or refinance again before that, the savings may not show up. A lower payment is not automatic.

How Old Do I Have to Be for a Reverse Mortgage?

The usual age is 62 or older. In some cases a program allows 55 or older. Age is only the start. You still have to keep up taxes, insurance, and the home.

How Do I Know If a Home Is Rural Enough for USDA?

Use the USDA eligibility map. A small town can still be ineligible. The map, not a guess, decides the address.

Does Military Service Mean I Can Use a VA Loan?

Not by itself. The VA reviews service history and entitlement. A loan officer can help you request that review. The benefit is for eligible veterans, service members, and some surviving spouses.

A mortgage is a loan used to buy a home, or to replace a home loan you already have. You pay it back over time. The home is the collateral, which means the lender can foreclose if the loan is not repaid as agreed.

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Short answers and definitions. Gerret can go further when you are ready.

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Search the Glossary

A

APR: The annual percentage rate. It folds some loan costs into a yearly figure so loans can be compared. It is not the same as the interest rate, and it is not a quote.
Amortization: The schedule that shows how each payment splits between principal and interest over the life of the loan.
Appraisal: A professional opinion of what the home is worth. The lender uses it to see whether the price and the loan fit the property.

C

Closing: The day the loan is signed and the home sale is finished. You review final numbers, sign papers, and pay any closing costs that are due that day.

D

DSCR: A rent-to-payment ratio used on some investment loans. It compares the rent a property may earn with the payment on the loan.
Debt-to-Income: A comparison of your monthly debt payments with your monthly income. Housing and other bills are both part of it. It is a review topic, not a cutoff printed on this site.

E

Earnest Money: A deposit you make with an offer to show you intend to buy. What happens to it if the sale falls through depends on the contract.
Entitlement: The VA benefit amount that can back a VA loan. The VA, not the lender, decides how much entitlement you have left.
Equity: The part of the home value that is not owed on loans. If the home is worth more than the loan balances, the difference is equity.
Escrow: An account, often run by the loan servicer, that holds money for property taxes and homeowners insurance. You pay into it with your mortgage payment, and the servicer pays those bills when they are due.

H

HOA: A homeowners association. It can charge a fee and set rules for the property. The fee is separate from the loan payment unless your estimate says otherwise.

M

Mortgage Insurance: A cost on some loans with a smaller down payment. It protects the lender, not the owner, and it can be part of the monthly payment.

N

Non-QM: A loan that does not follow the usual qualified-mortgage rules. It may use different income records. It is not an easier approval.

P

PITI: Principal, interest, taxes, and insurance. People use it as a nickname for a full monthly housing payment. Your payment can also include other items.
Points: A fee paid up front, often in exchange for a different interest rate. One point is a way of talking about that fee. Ask for the dollar amount before you compare offers.
Pre-Approval: A lender review of income, assets, and credit before you have a contract on a home. It is not a promise that the loan will close.
Principal: The amount you still owe on the loan, not counting interest. Each monthly payment usually pays some principal and some interest.

R

Rate Lock: An agreement to hold an interest rate for a set number of days while the loan is finished. It expires. It is not a promise that you will be approved.

T

Title: The legal record of who owns the home. A title company checks that record before closing so surprises, such as an old lien, can be found.

U

Underwriting: The review that checks the home, the appraisal, and your documents before a final decision. It can ask for more records.