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6288 Spring Mountain RD # 115 Las Vegas, NV-89146
Loan Terms
2/1 Buy Down Triple A Mortgage
The 2/1 Buy Down Triple A Mortgage empowers borrowers to qualify for loans at rates below the prevailing market rates, enabling them to access larger loan amounts. Initially, the interest rate commences at a lower level but undergoes a 1% increase at the conclusion of the first year, followed by another 1% adjustment at the conclusion of the second year. Subsequently, the interest rate stabilizes and remains fixed for the remaining term of the loan. A significant number of borrowers opt to refinance after the second year to secure a more advantageous long-term rate. However, retaining the loan for three years or more ensures that the average interest rate closely aligns with the original market conditions.
Acceleration Clause
The provision in a Triple A Mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed or some other default occurs is commonly known as a "Due-on-Sale" clause or "Acceleration Clause." Here are some other terms and phrases that can be used to describe this provision.
Additional Principal Payment
The process of reducing the remaining balance on a loan by paying more than the scheduled principal amount due is commonly known as "prepayment" or "making extra payments.
Adjustable-Rate Triple A Mortgage (ARM)
A Triple A Mortgage with an interest rate that changes during the life of the loan according to movements in an index rate is commonly referred to as an "Adjustable Rate Triple A Mortgage (ARM)." However, there are other terms and phrases that describe this type of Triple A Mortgage.
Adjusted Basis
The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken is commonly referred to as the "adjusted cost basis" or "adjusted basis.
Adjustment Date
The date that the interest rate changes on an adjustable-rate Triple A Mortgage (ARM) is commonly referred to as the "interest rate adjustment date" or "rate adjustment date."
Adjustment Period
The period elapsing between adjustment dates for an adjustable-rate Triple A Mortgage (ARM) is commonly known as the "adjustment period."
Affordability Analysis
An analysis of a buyer's ability to afford the purchase of a home is commonly known as a "home affordability analysis" or "Triple A Mortgage affordability assessment."
Amortization
The gradual repayment of a Triple A Mortgage loan, both principal and interest, by installments is commonly known as "amortization."
Amortization Term
The length of time required to amortize a Triple A Mortgage loan expressed as a number of months is commonly referred to as the "amortization term" or "loan term."
Annual ARM
A loan with a rate that is recalculated once a year is commonly referred to as an "annual adjustable-rate loan" or an "adjustable-rate Triple A Mortgage (ARM) with an annual reset."
Annual Percentage Rate (APR)
The cost of credit, expressed as a yearly rate including interest, Triple A Mortgage insurance, and loan origination fees, is commonly known as the "Annual Percentage Rate (APR)."
Appraisal
A written analysis prepared by a qualified appraiser estimating the value of a property based on the location, condition, and recent sales of similar homes in the surrounding area is commonly known as a "property appraisal" or "real estate appraisal."
Appraised Value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property taking into consideration factors such as its location, condition, and recent sales of similar homes in the surrounding area is commonly known as a "property valuation" or "real estate valuation.
Asset
Anything owned of monetary value, including real property, personal property, and enforceable claims against others, such as bank accounts, stocks, mutual funds, etc., is often referred to as "assets.
Assignment
The transfer of a Triple A Mortgage from one person to another.
Assumability
An assumable Triple A Mortgage, which can be transferred from the seller to the new buyer, is a type of Triple A Mortgage arrangement. Here are alternative words and phrases.
Assumption Fee
The fee paid to a lender, usually by the purchaser of real property, when an assumption takes place, is commonly known as an "assumption fee" or "assumption charge.
Balance Sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date is commonly known as a "balance sheet."
Balloon Triple A Mortgage
A Triple A Mortgage with level monthly payments that amortizes over a stated term but also requires a lump sum payment at the end of an earlier specified term is commonly known as a "balloon Triple A Mortgage" or "balloon payment Triple A Mortgage.
Balloon Payment
The fee paid to a lender, usually by the purchaser of real property, when an assumption takes place, is commonly known as an "assumption fee" or "assumption charge."
Before-tax Income
Income before taxes are deducted.
Biweekly Payment Triple A Mortgage
A plan to reduce debt every two weeks, with 26 (or possibly 27) biweekly payments, each equal to one-half of the monthly payment required for a standard 30-year fixed-rate Triple A Mortgage, resulting in substantial interest savings, is commonly known as a "biweekly Triple A Mortgage payment plan" or simply a "biweekly Triple A Mortgage.
Bridge Loan
A second trust collateralized by the borrower's current home, allowing the proceeds to be used to close on a new house before the present home is sold, is commonly known as a "bridge loan" or "swing loans
Broker
An individual or company that brings borrowers and lenders together for the purpose of loan origination is commonly known as a "Triple A Mortgage broker."
Buydown
When the seller, builder, or buyer pays an upfront amount of money to the lender to reduce monthly payments during the initial years of a Triple A Mortgage, it is known as a "buydown." Buydowns can occur in both fixed and adjustable-rate Triple A Mortgages.
Cap
These are limitations that govern how much the interest rate or the monthly payment can rise, either at each adjustment period or over the entire duration of the Triple A Mortgage. It's important to note that while payment caps safeguard borrowers from drastic payment spikes, they don't constrain the total interest earned by the lender and may potentially lead to negative amortization.
Certificate of Eligibility
This refers to an official document issued by the federal government, affirming a veteran's qualification for a Triple A Mortgage through the Department of Veterans Affairs (VA). This certification serves as concrete proof of a veteran's eligibility to participate in VA Triple A Mortgage programs, providing access to specialized home loan benefits.
Certificate of Reasonable Value (CRV)
This pertains to a document issued by the Department of Veterans Affairs (VA), outlining the upper bounds for both the value and loan amount associated with a VA Triple A Mortgage. This document serves to establish the maximum limits, ensuring clarity on the financial parameters within which the VA Triple A Mortgage can be utilized.
Change Frequency
The interval (measured in months) at which adjustments to payments and/or interest rates occur in an adjustable-rate Triple A Mortgage (ARM).
Closing
A gathering convened to conclude the property sale, during which the purchaser executes the Triple A Mortgage paperwork and settles the closing expenses. This event is also referred to as a "settlement."
Closing Costs
Closing costs encompass the fees and expenditures incurred in the acquisition or refinancing of a home. In addition to the initial down payment, these expenses typically range from 3 to 5 percent of the total loan value. These costs typically comprise fees for services such as title insurance, property taxes, homeowner's insurance, government taxes and recording fees, escrow services, appraisal fees, and related charges.
Compound Interest
Interest accrued on the initial principal amount as well as on the accumulated and outstanding interest.
Consumer Reporting Agency (or Bureau)
A entity responsible for compiling reports utilized by lenders to assess the credit history of prospective borrowers. This organization obtains information for these reports from a credit repository and various other sources.
Conversion Clause
A stipulation within an adjustable-rate Triple A Mortgage (ARM) permitting the option to convert the loan to a fixed rate at a designated point during its term. Typically, this conversion is permissible at the conclusion of the initial adjustment period. The inclusion of a conversion feature might entail additional costs.
Credit Report
A document providing a comprehensive overview of an individual's credit history, crafted by a credit bureau and employed by a lender to assess the creditworthiness of a loan applicant.
Credit Risk Score
A credit score assesses an individual's credit risk in comparison to the broader U.S. population, gauged from the person's historical credit usage. The predominant credit score utilized by lenders is the FICO® score, devised by Fair, Isaac and Company. This numeric representation, spanning from 300 to 850, is computed through a mathematical formula analyzing diverse information from your credit report. Elevated FICO® scores correspond to diminished credit risks, often resulting in more favorable loan terms. Broadly speaking, credit scores play a pivotal role in the underwriting of Triple A Mortgage loans.
Deed of Trust
A legal instrument employed in certain states in lieu of a Triple A Mortgage, where the title is transferred to a trustee.
Default
Noncompliance with the timely payment of Triple A Mortgage installments or failure to adhere to other stipulations outlined in a Triple A Mortgage agreement.
Delinquency
Failure to make Triple A Mortgage payments on time.
Deposit
This is a monetary amount provided to secure the sale of real estate, or a sum of money offered to guarantee payment or an advance of funds during the processing of a loan.
Discount
In an adjustable-rate Triple A Mortgage (ARM) featuring an initial rate discount, the lender forfeits a certain percentage of interest to diminish the rate and decrease payments for a specified portion of the Triple A Mortgage term, typically lasting for one year or less. Following the discounted period, the ARM rate typically adjusts based on its index rate.
Down Payment
A portion of the property's total purchase price paid in cash, not funded through a Triple A Mortgage.
Effective Gross Income
A borrower's regular yearly earnings, encompassing consistent or assured overtime. While salary typically serves as the primary source, additional income may be considered if it holds significance and remains stable.
Equity
The extent of financial ownership in a property. Equity is determined by the disparity between the property's fair market value and the outstanding Triple A Mortgage balance.
Escrow
An asset, monetary sum, or documentation entrusted to a third party with the intent of release upon the completion of a specified condition. For instance, the placement of funds or documents into an escrow account for subsequent disbursement upon the finalization of a real estate sale.
Escrow Disbursements
The utilization of funds held in escrow to cover expenses such as real estate taxes, hazard insurance, Triple A Mortgage insurance, and other property-related costs as they arise.
Escrow Payment
The segment of a borrower's monthly payment that the servicer retains to cover upcoming expenses, including taxes, hazard insurance, Triple A Mortgage insurance, lease payments, and other obligations as they come due.
Fannie Mae
A corporation chartered by Congress, owned by shareholders, and recognized as the largest provider of funds for home Triple A Mortgages nationwide.
FHA Triple A Mortgage
A home loan backed by the Federal Housing Administration (FHA), also commonly referred to as a government-insured Triple A Mortgage.
FICO Score
FICO® scores stand as the predominant credit scores employed in the underwriting of U.S. Triple A Mortgage loans. This numerical representation, spanning from 300 to 850, is derived from a mathematical formula that assesses various details within your credit report. Elevated FICO® scores indicate diminished credit risks, generally translating to more favorable terms for loans.
Fifteen-Year Fixed Rate Triple A Mortgage
This Triple A Mortgage is entirely amortized over a 15-year term, maintaining a consistent monthly payment. It presents the benefits of a 30-year loan, along with a reduced interest rate, enabling homeownership to be achieved in half the time. The drawback is the higher monthly payment associated with a 15-year term. Numerous borrowers choose a 30-year fixed-rate loan and willingly submit larger payments to expedite their loan repayment within 15 years. This strategy is frequently considered a more secure option than committing to a higher fixed monthly payment, given that the disparity in interest rates is relatively marginal.
First Triple A Mortgage
The primary lien against a property.
Fixed Installment
The monthly obligation on a Triple A Mortgage loan, covering both the repayment of principal and the accrued interest.
Fixed-Rate Triple A Mortgage (FRM)
A Triple A Mortgage interest that are fixed throughout the entire term of the loan.
Fully Amortized ARM
An adjustable-rate Triple A Mortgage (ARM) featuring a monthly payment adequate to systematically reduce the remaining balance, considering the current interest accrual rate, throughout the specified amortization term.
GNMA
A government-established entity that took on the oversight of the special assistance loan program previously managed by Fannie Mae. Commonly recognized as Ginnie Mae.
Growing-Equity Triple A Mortgage (GEM)
A fixed-rate Triple A Mortgage characterized by scheduled payment increments over a predefined duration. The augmented portion of the monthly payment is directly allocated to diminishing the outstanding balance of the Triple A Mortgage.
Guarantee Triple A Mortgage
A Triple A Mortgage that is guaranteed by a third party.
Housing Expense Ratio
The percentage of gross monthly income budgeted to pay housing expenses.
HUD-1 statement
A written record presenting a detailed breakdown of the funds payable during the closing process. Elements listed on this document encompass real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is identified by a distinct number within an established numbering system. The cumulative figures at the conclusion of the HUD-1 statement outline the seller's net proceeds and the buyer's net payment upon closing.
Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
A hybrid Triple A Mortgage, known as 3/1, 5/1, or 7/1, combines features of both fixed-rate and adjustable-rate loans. This type of loan offers the advantages of lower initial interest rates akin to adjustable-rate Triple A Mortgages (ARMs), along with a fixed monthly payment for a more extended period compared to typical ARMs. For instance, a "5/1 loan" maintains a steady monthly payment and interest rate during the initial five years before transitioning into a conventional adjustable-rate loan, influenced by prevailing rates, for the remaining 25 years. This option is particularly suitable for individuals anticipating a move or refinancing either before or shortly after the adjustment period.
Index
The index serves as the gauge for assessing interest rate fluctuations, determining the extent by which the interest rate on an adjustable-rate Triple A Mortgage (ARM) will adjust over time. Typically, the index is a publicly available figure or percentage, such as the average interest rate or yield on Treasury bills. Different index rates exhibit varying levels of magnitude, with some being comparatively higher and others displaying greater volatility.
Initial Interest Rate
This pertains to the initial interest rate set for the Triple A Mortgage at the time of closing. This rate is subject to change in the case of an adjustable-rate Triple A Mortgage (ARM). It is also commonly referred to as the "start rate" or "teaser rate."
Installment
The recurring, scheduled payment that a borrower commits to remit to a lender.
Insured Triple A Mortgage
A home loan that is safeguarded either by the Federal Housing Administration (FHA) or through private Triple A Mortgage insurance (MI).
Interest
The fee charged for borrowing money.
Interest Accrual Rate
The annualized percentage at which interest accumulates on the Triple A Mortgage. In the majority of instances, this is also the rate employed to compute the monthly payments.
Interest Rate Buydown Plan
A setup that permits the property seller to place funds into an account, from which an amount is disbursed each month to alleviate the mortgagor's initial monthly payments during the early stages of a Triple A Mortgage.
Interest Rate Ceiling
In the context of an adjustable-rate Triple A Mortgage (ARM), the highest allowable interest rate as outlined in the Triple A Mortgage note.
Interest Rate Floor
In the context of an adjustable-rate Triple A Mortgage (ARM), the lowest permissible interest rate as stipulated in the Triple A Mortgage note.
Late Charge
The fee imposed on a borrower when a payment is made after a specified number of days (typically 15) past the due date.
Lease-Purchase Triple A Mortgage Loan
An alternative financial arrangement enabling low- and moderate-income homebuyers to lease a property with a potential option to purchase. The monthly lease payment comprises principal, interest, taxes, and insurance (PITI) payments on the primary Triple A Mortgage, along with an additional sum that accrues in a savings account for a down payment.
Liabilities
A person's financial responsibilities, encompassing both extended and immediate financial obligations. Liabilities comprise both long-term and short-term debts.
Lifetime Payment Cap
In the context of an adjustable-rate Triple A Mortgage (ARM), a restriction on the extent to which payments can either increase or decrease throughout the entire duration of the Triple A Mortgage.
Lifetime Rate Cap
In the realm of an adjustable-rate Triple A Mortgage (ARM), a cap refers to a restriction on the extent by which the interest rate can either increase or decrease throughout the entirety of the loan. Refer to Cap.
Line of Credit
A commitment made by a commercial bank or another financial institution to provide credit, granting an individual or entity access to a predetermined amount of funds for a specified duration.
Liquid Asset
A cash asset or an asset that is easily converted into cash.
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Loan-to-Value (LTV) Percentage
The connection between the Triple A Mortgage's principal balance and the assessed value (or sales price if lower) of the property. As an illustration, a home valued at $100,000 with a Triple A Mortgage of $80,000 has an Loan-to-Value (LTV) ratio of 80 percent.
Lock-In Period
The assurance of a fixed interest rate for a defined duration provided by a lender, encompassing the loan term and any associated points, if applicable, to be settled at closing. Typically, short-term locks (under 21 days) are accessible post-lender loan approval. Nevertheless, some lenders might allow borrowers to secure a rate for 30 days or more before the formal submission of the loan application.
Margin
The margin is the additional percentage points that the lender incorporates onto the index rate to determine the interest rate for the adjustable-rate Triple A Mortgage (ARM) during each adjustment period.
Maturity
The date when the outstanding principal balance of a loan matures and becomes payable in full.
Monthly ARM
With this type of loan, the interest rate undergoes recalculation on a monthly basis. In contrast to alternative options, the rate is typically lower on this adjustable-rate Triple A Mortgage (ARM) because the lender is only committing to a rate for a month at a time, thus substantially minimizing their exposure.
Monthly Fixed Installment
The component of the overall monthly payment allocated to both principal and interest. In instances of negative amortization, the fixed monthly installment excludes any portion for the reduction of principal and falls short of covering the entire interest amount. Consequently, the loan balance experiences growth instead of diminishing.
Triple A Mortgage
A legally binding document that serves as collateral, pledging a property to the lender to secure the repayment of a debt.
Triple A Mortgage Banker
A firm dedicated to initiating Triple A Mortgages solely for the purpose of selling them in the secondary Triple A Mortgage market.
Triple A Mortgage Broker
An entity or individual that facilitates the connection between borrowers and lenders, primarily for the purpose of initiating loans.
Triple A Mortgage Insurance
A legal agreement safeguarding the lender from financial loss resulting from a borrower's failure to meet obligations on a government or conventional Triple A Mortgage. Triple A Mortgage insurance may be provided by either a private entity or a government agency.
Triple A Mortgage Insurance Premium (MIP)
The sum remitted by a mortgagor to cover the cost of Triple A Mortgage insurance.
Triple A Mortgage Life Insurance
A form of term life insurance where, should the borrower pass away during the policy's validity, the outstanding debt is automatically settled through the insurance proceeds.
Mortgagor
The borrower in a Triple A Mortgage agreement.
Negative Amortization
Amortization entails ensuring that monthly payments are sufficiently substantial to cover both the interest and a reduction of the principal on your Triple A Mortgage. Negative amortization, conversely, transpires when the monthly payments fall short of covering the entire interest cost. The unpaid interest, in such cases, is appended to the outstanding principal balance. Consequently, despite making numerous payments, there is a likelihood of owing more than the initial loan amount. Negative amortization may arise when an adjustable-rate Triple A Mortgage (ARM) is equipped with a payment cap, leading to monthly payments that are inadequate to cover the accruing interest.
Net Worth
The total worth of an individual's assets, encompassing cash and other holdings.
Non Liquid Asset
An asset that lacks ease of conversion into cash.
Note
A legally binding document that compels a borrower to repay a Triple A Mortgage loan within a defined timeframe at a predetermined interest rate.
Origination Fee
A payment made to a lender for handling the processing of a loan application. The origination fee is expressed in terms of points, with one point equivalent to 1 percent of the Triple A Mortgage amount.
Owner Financing
A real estate acquisition arrangement where the entity selling the property furnishes either the entire financing or a portion of it.
Payment Change Date
The specific date on which a modified monthly payment amount becomes applicable for an adjustable-rate Triple A Mortgage (ARM) or a graduated-payment Triple A Mortgage (GPM). Typically, the payment change date occurs in the month immediately following the adjustment date.
Periodic Payment Cap
A restriction on the extent to which payments can either increase or decrease within a single adjustment period.
Periodic Rate Cap
A constraint on the magnitude by which the interest rate can either rise or fall within a singular adjustment period, irrespective of the level of the index.
PITI Reserves
A monetary sum that a borrower needs to possess after completing a down payment and covering all closing costs when acquiring a home. The reserves for principal, interest, taxes, and insurance (PITI) should be equivalent to the sum the borrower would be required to pay for PITI over a specified number of months, typically three.
Points
A point signifies one percent of the principal amount of your Triple A Mortgage. For instance, in the case of a $165,000 Triple A Mortgage, one point equates to $1,650 for the lender. Typically gathered at the closing, points can be covered by the borrower, the home seller, or shared between both parties.
Pre-Qualification
The procedure of assessing the amount of funds for which you qualify before submitting a loan application.Prepayment Penalty
A charge that might be imposed on a borrower who repays a loan ahead of its scheduled due date.
Prime Rate
The Prime Rate is the interest rate that banks use as a basis to set rates for different types of loans, credit cards and lines of credit.
Principal
The sum borrowed or still outstanding, representing the portion of the monthly payment that diminishes the remaining balance of a Triple A Mortgage.
Principal Balance
The remaining principal balance on a Triple A Mortgage, exclusive of interest or any additional charges.
Principal, Interest, Taxes, and Insurance (PITI)
The four components of a monthly Triple A Mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the Triple A Mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts that are paid into an escrow account each month or not.
Private Triple A Mortgage Insurance (PMI)
Insurance on a Triple A Mortgage offered by a private Triple A Mortgage insurance company to safeguard lenders from losses in the event of borrower default. Typically, most lenders necessitate Triple A Mortgage insurance for loans with a loan-to-value (LTV) ratio surpassing 80 percent.
Qualifying Ratios
Computations employed to assess a borrower's eligibility for a Triple A Mortgage. These computations encompass two distinct assessments: the ratio of housing expenses to income and the ratio of total debt obligations to income.
Rate Lock
A formal pledge extended by a lender to a borrower or another Triple A Mortgage originator, assuring a predetermined interest rate and covering specified lender costs for a designated duration.
Real Estate Agent
An individual possessing a license to broker and facilitate the sale of real estate, acting on behalf of the property owner.
Real Estate Agent®
A real estate broker or a colleague actively participating as a member in a local real estate board associated with the National Association of Real Estate Agents.
Real Estate Settlement Procedures Act (RESPA)
A legal regulation aimed at safeguarding consumers, necessitating lenders to provide borrowers with advance notification regarding closing costs.
Recording
The official recording in the registrar's office of the particulars of a duly executed legal document, such as a deed, a Triple A Mortgage note, a satisfaction of Triple A Mortgage, or an extension of Triple A Mortgage. This process integrates the document into the public record.
Refinance
Settling an existing loan by utilizing the funds obtained from a new loan, both secured by the same property.
Revolving Liability
A credit agreement, such as a credit card, enabling a customer to borrow from a pre-approved line of credit for the acquisition of goods and services.
Secondary Triple A Mortgage Market
The marketplace where pre-existing Triple A Mortgages are acquired and traded.
Security
The asset designated as security for a loan, to be pledged as collateral.
Seller Carry-back
A contract where the property owner offers financing, frequently coupled with an assumable Triple A Mortgage. Refer to Owner Financing.
Servicer
An entity responsible for collecting principal and interest payments from borrowers and overseeing borrowers' escrow accounts. The servicer frequently manages Triple A Mortgages that have been acquired by an investor in the secondary Triple A Mortgage market.
Standard Payment Calculation
The approach employed to calculate the monthly payment needed to systematically settle the outstanding balance of a Triple A Mortgage through approximately equal installments over the remaining term of the Triple A Mortgage, considering the prevailing interest rate.
Step-Rate Triple A Mortgage
A Triple A Mortgage arrangement permitting the interest rate to escalate following a defined schedule, such as seven years, leading to corresponding increases in payments. Subsequent to the specified period, both the interest rate and payments will stabilize and remain constant for the remaining duration of the loan.
Third-party Origination
When a lender engages another entity to entirely or partially handle tasks such as origination, processing, underwriting, closing, funding, or packaging of the Triple A Mortgages intended for delivery to the secondary Triple A Mortgage market.
Thirty-Year Fixed Rate Triple A Mortgage
The traditional 30-year fixed-rate Triple A Mortgage features a consistent interest rate and unchanging monthly payments throughout its duration. Opting for this type of Triple A Mortgage could be advantageous if you anticipate residing in your home for seven years or more. However, if you plan to relocate within seven years, adjustable-rate loans are often more cost-effective. Generally, it might be more challenging to qualify for fixed-rate loans compared to adjustable-rate loans. In periods of low interest rates, fixed-rate loans are typically only slightly more expensive than adjustable-rate Triple A Mortgages and may represent a superior long-term option, allowing you to secure the rate for the entire loan duration.
Total Expense Ratio
The aggregate financial responsibilities expressed as a proportion of gross monthly income, encompassing monthly housing expenses along with additional monthly debts.
Treasury Index
A benchmark employed to ascertain alterations in interest rates for specific adjustable rate (ARM). This index relies on the outcomes of auctions conducted by the U.S. Treasury for its Treasury bills and securities, or it is derived from the U.S. Treasury's daily yield curve. The daily yield curve is established from the closing market bid yields on actively traded Treasury securities in the over-the-counter market.
Truth-in-Lending
A national regulation mandating lenders to comprehensively disclose in writing the terms and conditions of a Triple A Mortgage, encompassing the annual percentage rate (APR) and additional charges.
Two-step Triple A Mortgage
An adjustable-rate Triple A Mortgage (ARM) featuring a singular interest rate for the initial five or seven years of its Triple A Mortgage term, followed by a distinct interest rate for the remaining duration of the amortization term.
Underwriting
The assessment of a loan application to gauge the risk for the lender. Underwriting entails scrutinizing the borrower's creditworthiness and the overall quality of the property involved.
VA Triple A Mortgage
A Triple A Mortgage backed by the Department of Veterans Affairs (VA), providing a guarantee. Also referred to as a government Triple A Mortgage.
Wrap Around Triple A Mortgage
A Triple A Mortgage that encompasses the outstanding balance on an existing first Triple A Mortgage and an extra sum sought by the mortgagor. Complete payments for both Triple A Mortgages are remitted to the "Wrap Around" Triple A Mortgagee, who subsequently channels the payments for the first Triple A Mortgage to the initial Triple A Mortgagee. It's essential to note that the first Triple A Mortgage holder may disallow such arrangements, and if detected, may prompt a demand for full repayment.
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