DEBT RATIO
Percentage established by the lender to determine one's ability
to pay back a loan in relation to one's debts-to-income. A lower
percentage reflects a healthier financial state. The average range
is 33-36%.
ESCROW ACCOUNT
Part of the mortgage payment that is deposited into an account
specifically set aside to pay real estate taxes and homeowner's
insurance.
HOUSING RATIO
Percentage established by the lender to provide protective equity
base for mortgage lending. The average acceptable range is 25-28%,
based upon the size of the borrower's down payment.
ORGANIZATION FEE
Fee charged by a mortgagee for processing a mortgage loan
application.
PITI
More commonly known as Principal + Interest + Taxes + Insurance.
POINTS
Amount of discount on a mortgage loan stated as a percentage. One
point equals one percent of the face amount of the loan.
PRIVATE MORTGAGE INSURANCE
Borrower is charged an insurance premium that covers the extra
risk to the mortgage of making a loan greater than 80% of the
appraised value.
COMMUNITY HOME BUYER PROGRAM
Loan programs are available for low to moderate income families.
Easier qualification with less down payment makes more dreams come
true.
Call 602-861-3300
