Beverly-Hanks & Associates

The home mortgage process is more complicated than it used to be. Well-qualified people often find themselves delayed or even unable to close due to lender-mandated, last-minute changes and requests. Nothing is worse than finding the perfect home, and then having circumstances out of your control prevent you from realizing that dream.

And in many cases, understanding home mortgage information can be as complicated as deciphering a map for buried treasure!

You may already know common mortgage industry abbreviations, like APR (annual percentage rate) and DTI (debt-to-income ratio). But the well of mortgage abbreviations runs deep! You’re guaranteed to come across some of the abbreviations below during your mortgage process, while others may only surface depending on your specific financing needs.

How many of these mortgage industry abbreviations do you know? Click the card to see the answer.


 

Do you know this abbreviation?

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FEDERAL HOUSING ADMINISTRATION: The largest insurer of mortgages in the world, insuring more than 47.5 million properties in the U.S. since its inception in 1934.

How about this one?

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FEDERAL HOUSING FINANCE AGENCY: In its role as regulator, the FHFA regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. It is wholly separate from the FHA.

This is a tough one!

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ADJUSTABLE RATE MORTGAGE: A mortgage loan with an interest rate that is periodically adjusted. Adjustments are based on an index that reflects your cost of borrowing on the credit markets.

Make sure you have a firm grasp on this one

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FIXED-RATE MORTGAGE: A fully amortizing mortgage loan. In FRMs, the interest rate remains the same through the term of the loan instead of adjusting or "floating."

Not a trip to the movies

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APPRAISAL MANAGEMENT COMPANIES: Companies that manage networks of independent appraisers to fulfill real estate appraisal assignments on behalf of mortgage lenders.

Designed to gain your trust

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FEDERAL DEPOSIT INSURANCE CORPORATION: A U.S. government corporation created to maintain stability and public confidence in the nation's financial system.

As clear as...

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MUNICIPAL UTILITY DISTRICT: A political subdivision authorized by the state to provide utility-related services within its boundaries and funded through bonds paid by homeowners.

Have you seen this one in comic book fight scenes?

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PRICE LEVEL ADJUSTED MORTGAGE: A graduated-payment home loan in which the principal (not the interest rate) adjusts for inflation.

I pity the fool who doesn’t know this one!

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PRINCIPAL, INTEREST, TAXES, & INSURANCE: An acronym for a “bottom line” mortgage payment that combines the monthly loan service (principal and interest) with the property tax payment, and homeowners insurance premium.

Hopefully you won’t need to learn this one anytime soon...

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SPECIAL FLOOD HAZARD AREA: A mapped area identified by FEMA as having a special flood, mudflow, or flood-related erosion hazard.

 


Don’t Let Complicated Abbreviations Ruin Your Mortgage Search!

At Beverly-Hanks Mortgage Services, we understand how complicated a home mortgage process can be—and on top of your complicated home purchase, at that!

As your local lender, we’ll beat the big banks by taking the time to explain all the details, including what every opaque abbreviation means. We’ll work directly with your real estate agent to ensure an efficient loan process. And we’ll be personally available to ensure you’re able to make confident real estate decisions.

Make a mortgage inquiry today!

 

 

Beverly-Hanks Mortgage Services (NMLS# 42020)

For more information on our many financing services, call one of our professional mortgage loan officers today: (866) 858-2257.

 

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