Minnesota and Wisconsin's Home Finance Specialist

Home
Mortgage Calculator
The Process
Terms
FAQ
Testimonials
Contact Us

Local: 651-388-5150
Cell: 651-208-4168
2000 Old West Main
3rd Floor
Pottery Place
Red Wing, MN

Mortgage Terms


Adjustable Rate Mortgage (ARM)
A variable rate mortgage with an interest rate that adjusts periodically.

top of page


Annual Cap
Annual maximum adjustment of your adjustable rate mortgage. For example, if your annual cap is 2%, your mortgage interest rate can only increase by a maximum of 2%.

top of page


Appraisal
An estimate of a property’s value as of a given date, determined by a qualified professional appraiser. The value may be based on several factors including, recent sales of
comparable properties.

top of page


Conforming Loan
A loan that conforms to Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) guidelines.

top of page


Conventional Mortgage
A mortgage that is not insured or guaranteed by the federal
government.

top of page


Escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit by a borrower with the lender of funds to pay taxes and insurance when they become due.

top of page


Escrow Collections
Funds set aside in an escrow account to pay the borrower’s property taxes, mortgage insurance, and hazard insurance.

top of page


Fixed Rate Mortgage
A mortgage in which the interest rate does not change during the entire term of the loan.

For the kind of service that accomplishes what you want and need to accomplish - with experience and expertise backing it up - and for answers to today's real estate financing questions and opportunities, call today!

"The key consideration for people pondering an ARM is how long they intend to remain in a house. Some popular ARMs carry a fixed rate during their first three, five, seven or ten years, making them a good choice for homeowners who plan to move in a relatively short period. These so-called hybrid ARMs generally aren't a good idea if you plan to stay put. Other ARMs adjust every year or less, making borrowers more vulnerable to short-term swings in interest rates." [Ruth Simon, The Wall Street Journal Sunday]


This site designed and hosted by
Plum Creek Associates