What is a home mortgage?

What is it? And what are some of the terms associated with it? I still rent an apartment so when it comes time for me to take the next step I'd like to know what the lingo is. I've also heard the terms refinance and 2nd and 3rd mortgage, what do these mean?

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  • 1 decade ago
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    A mortgage is the monies borrowed to finance a home.

    A refinance is when you own a home and want to find another lender with perhaps a better interest rate or a shorter or longer term.

    A 2nd mortgage is another loan taken out which takes the second position behind the 1st mortgage. A 3rd mortgage takes the 3rd position.

    Some lingo you will need to know is

    Good faith estimate. That is what your mortgage lender must tell you about the cost to finance your loan.

    Truth-in-lending statement, which tells you the amount you will pay over the life of the loan and what your Annual Percentage Rate (APR) is.

    Also, title insurance, protects you if the property has any previous ownership problems if you purchase owners title insurance. Your mortgage lender will require title insurance to cover their interest. As inexpensive as it is, it is to your advantage to purchase owner title insurance also.

    Escrow accounts are what the lenders may require you to have so they can directly pay insurance, taxes etc.

    PMI may be required if your down payment is less than 20%.

    Loan to value (LTV) is the ratio between how much you borrow to the value of the residence.

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  • 4 years ago

    How come it's such a big deal that McCain has so many homes, but yet no one mentioned in 2004 about John Kerry's several homes? Or what about Obama's private jet? I wonder how much gas that takes? This statement would have substance if Obama was living in a shack, but both sides spend money on lavish things, so you can't make the arguement valid. Secondly, McCain predicted the Mortgage Crisis in 2006 and exactly said how it would happen and what we should do about it then to not let it happen, but no one wants to give him credit for that. If I remember, Obama recieved the second most amount of campaign money from Fannie Mae and Freddie Mac. McCain was at the bottom of the list in recieving campaign money from these companies. The same companies that ran their companies into the ground. It was well known this was happening too for several years. But Obama ain't going to say anything when he's recieving millions of dollars in campaign money from them since 1989. Get informed.

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  • 1 decade ago

    mortage is just a fancy word for home loan. as for the rest, I dont know because I just asked my mom about the house buying thing myself. I have a lot to learn too!

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