Mortgage Terms (Part 1 of 2)
There are several jargons in mortgage world that may confuse some people. Below are some of the terms that are used frequently in a mortgage agreement.
Advance
This is the money you have borrowed plus all the additional fees.
Annual Percentage Rate (APR)
This includes all fees, interest rate, and any additional costs related to the mortgage.
Base Rate
In UK, this is the base interest rate set by the Bank of England.
Bridging Loan
This is a temporary loan that enables you to purchase your new property before you are able to sell your old property.
Completion
This is the time when money is transferred to the seller and the ownership is transferred to you.
Conveyance
This is the legal document that transfers ownership of unregistered land to you.
Disbursements
This is the all fees of your solicitors, such as stamp duty, land registry, search fees, etc.
Discounted Variable Rate
This is the rate of your interest rate that is discounted against the normal interest rate.
Early Redemption Charge / Pre-Payment Penalty / Redemption Penalty
This is the amount of money you have to pay if you pay your mortgage in full before the time finished.
Equity
This is the amount of your property in the market minus all loans that it has.
Fixed Rate
This is the interest rate that will not change for a specific period of time.
Freehold
This means the ownership of a property and the land.
Interest Only Mortgage
With this kind of mortgage, you only have to pay the interest every single month while the money you borrowed should be paid at the end of the mortgage.
Land Registration
This is a legal document that records the ownership of a property and land.
Legal Charge
This is a legal document that records the data of the rightful owner of a property or land.
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Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
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** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
Advance
This is the money you have borrowed plus all the additional fees.
Annual Percentage Rate (APR)
This includes all fees, interest rate, and any additional costs related to the mortgage.
Base Rate
In UK, this is the base interest rate set by the Bank of England.
Bridging Loan
This is a temporary loan that enables you to purchase your new property before you are able to sell your old property.
Completion
This is the time when money is transferred to the seller and the ownership is transferred to you.
Conveyance
This is the legal document that transfers ownership of unregistered land to you.
Disbursements
This is the all fees of your solicitors, such as stamp duty, land registry, search fees, etc.
Discounted Variable Rate
This is the rate of your interest rate that is discounted against the normal interest rate.
Early Redemption Charge / Pre-Payment Penalty / Redemption Penalty
This is the amount of money you have to pay if you pay your mortgage in full before the time finished.
Equity
This is the amount of your property in the market minus all loans that it has.
Fixed Rate
This is the interest rate that will not change for a specific period of time.
Freehold
This means the ownership of a property and the land.
Interest Only Mortgage
With this kind of mortgage, you only have to pay the interest every single month while the money you borrowed should be paid at the end of the mortgage.
Land Registration
This is a legal document that records the ownership of a property and land.
Legal Charge
This is a legal document that records the data of the rightful owner of a property or land.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
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8:54 PM
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