purchase: assists low- to moderate-income homebuyers in purchasing
a home by allowing them to lease a home with an option to buy; the
rent payment is made up of the monthly rental payment plus an additional
amount that is credited to an account for use as a down payment.
a legal claim against property that must be satisfied When the
property is sold
Loan: money borrowed that is usually repaid with interest.
fraud: purposely giving incorrect information on a loan application
in order to better qualify for a loan; may result in civil liability
or criminal penalties.
(LTV) ratio.- a percentage calculated by dividing the amount
borrowed by the price or appraised value of the home to be purchased;
the higher the LTV, the less cash a borrower is required to pay
as down payment.
since interest rates can change frequently, many lenders offer
an interest rate lock-in that guarantees a specific interest rate
if the loan is closed within a specific time.
mitigation: a process to avoid foreclosure; the lender tries
to help a borrower who has been unable to make loan payments and
is in danger of defaulting on his or her loan
Click here to learn more about mortgage rates in your state: Mortgage Rates