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What is the SOFR or Secured Overnight Financing Rate?
The SOFR is the Secured Overnight Financing Rate and is the rate large financial institutions pay each other for overnight ...
What is the LIBOR or London Inter Bank Offered Rate?
The LIBOR or London Interbank Offered Rate is a benchmark interest rate which major global banks lend to one another ...
What’s the difference between a deed of trust and a mortgage?
The simplest thing to remember when comparing a deed of trust to a mortgage is that a deed of trust ...
What is a central bank?
A central bank is a national bank that provides financial and banking services for it's country's government and commercial banking ...
What is an LLC?
An LLC or limited liability company is a type of corporate structure that is created in order to protect it's ...
What is the Federal Reserve?
The Federal Reserve or simply the Fed is the central bank of the United States. It is the most powerful ...
What is the CMT and how is it used with mortgages?
To understand what the CMT or Constant Maturity Treasury is we first need to understand what Treasury securities are. Treasury ...
What is a hard money loan?
Traditional banks do not make hard money loans. Hard money lenders are typically private individuals and companies and the approval ...
What is the NMLS?
The NMLS or Nationwide Multi-State Licensing System and Registry is a centralized database used by mortgage regulatory agencies to maintain ...
What are the top mortgage mistakes to avoid?
When it comes to obtaining a mortgage, there are some things you definitely do not want to do. The Top ...
What are asset and reserve requirements?
When applying for a mortgage, in most cases you will need to document your assets. This is done by providing ...
What is the Fed Funds Rate?
The federal funds rate is the rate banks charge each other to borrow or lend excess reserves overnight. The rate ...
What is hyperinflation?
Hyperinflation is an economic term used when a country's inflation rate is very high, is accelerating and is out of ...
What is stagflation?
Stagflation or what is also known as "recession-inflation" is continued high inflation combined with high unemployment and stagnant demand for ...
What is a mortgage recast?
A mortgage recast is when your lender recalculates the monthly payments on your current loan based on the outstanding balance ...
What is a Community Property State?
In community property states, spouses are considered joint owners of nearly all assets and debts acquired in marriage. However, most ...
What is a lender overlay?
Lender overlays are additional requirements put in place by a lender above and beyond those set by Fannie Mae, Freddie ...
Which is better? A Pre-Qualification or a Pre-Approval
A pre-qualification means your lender has reviewed the financial information you provided and deems you qualified for a mortgage. This ...
How does amortization work?
Basically, amortization is a repayment feature on loans with equal monthly payments that have a fixed end date or term. ...
What is the TILA / RESPA Integrated Disclosure Rule?
To break it down, TILA stands for the Truth in Lending Act and RESPA stands for the Real Estate Settlement ...
What is Fannie Mae or the Federal National Mortgage Association (FNMA)?
The Federal National Mortgage Association (FNMA) or more commonly known as Fannie Mae is a United States GSE, Government sponsored ...
What is Freddie Mac or the Federal Home Loan Mortgage Corporation (FHLMC)?
The Federal Home Loan Mortgage Corporation (FHLMC) or more commonly known as Freddie Mac is a United States GSE, Government ...
What is Ginnie Mae or the Government National Mortgage Association (GNMA)?
Ginnie Mae or the Government National Mortgage Association (GNMA) is a government owned corporation within the Department of Housing and ...
What is a short sale?
A short sale is when a financially distressed homeowner sells their property for less than they owe on the mortgage. ...
What’s a Deed-in-Lieu of Foreclosure?
A deed in lieu of foreclosure is when the borrower hands the deed of the property over to the mortgage ...
What are the different types of Adjustable Rate Mortgages (ARMs)?
There are basically six different types of ARM, adjustable rate mortgages, that you will see being offered by most lenders. ...
What are mortgage backed securities (MBS)?
Mortgage backed securities are essentially a bundle of home loans purchased from lenders at a discount that come in two ...
What are the Homeowner’s Association Documents?
There are essentially five Homeowner's Association documents that you should be familiar with when looking to buy and finance a ...
What is the BIS or Bank for International Settlements?
The BIS or the Bank for International Settlements is essentially the international financial institution that offers services to many nation's ...
What is the IMF for International Monetary Fund?
The IMF or International Monetary Fund is a major world organization and part of the United Nations and is headquartered ...
What is the refinancing rule of thumb?
The refinancing rule of thumb says that you should consider refinancing your home when you can get an interest rate ...
When is the best time to buy a home?
Is there a best time to buy a home? Well, the answer is yes and no. Seasonality does play a ...
Does the right of rescission apply to all mortgages?
The right of rescission allows the borrower to completely cancel their mortgage transaction within three business days of signing the ...
What is the World Bank?
The World Bank was conceived in 1944 along with the IMF at the Bretton Woods Conference held in New Hampshire. ...
What do loan processors do?
A loan processor works with your loan officer to make sure your financial profile fits the lending guidelines of the ...
What is redlining?
Redlining is a term synomous with racial discrimination. It is the practice of outling in red on government maps areas ...
What is blockbusting?
Blockbusting is a practice in which real estate agents convince white residents in a particular area to sell their homes ...
What is a Mello-Roos?
The Mello-Roos is a tax assessed against the land, but is not based upon the value of the property that ...
What is a doctor mortgage?
You might not have been aware that there are loan programs specifically desiged for doctors or physicians. These loans usually ...
What is an indian land lease?
Indian land leases are unique in only a few markets in the U.S. Essentially, you own the structure and lease ...
What are correspondent lenders?
A correspondent lender is one who originates and funds a mortgage, but then sells it to Fannie Mae or Freddie ...
What are lava zones? If you’re in Hawaii pay attention.
Lava zones can play a role in whether you can get a mortgage. They relate specifically to areas designated by ...
What is an Appraisal Waiver or PIW?
Often times a lender will grant an appraisal waiver or PIW as it is also known, property inspection waiver, if ...
What is a Certification of Trust?
A Certification of Trust is a legal document that can be used to certify both the existence of a Trust ...
What is a 2-1 Buydown?
A 2-1 buydown is a loan that has an interest rate 2% points lower the first year and 1% lower ...
What is inflation?
Simply put, inflation is a rise in prices which equates to a decline in your purchasing power of goods and ...
What is flood insurance and do I need it?
Flood insurance covers losses to your property directly caused by flooding, meaning an excess of water on land that is ...
What are the typical closing costs I will see on my loan?
Closing costs are the associated fees with a mortgage when buying or refinancing a property. Discount points used to adjust ...
What constitutes a loan application? P-E-N-C-I-L
There are six pieces of information that consitute a loan application and thus trigger your loan officer to submit a ...
What is title insurance and why is it needed?
Title insurance is typically a large portion of your closing costs on a mortgage. So what is it? Title insurance ...
What is an automated underwriting system?
To understand what an Automated Underwriting System or AUS is you first need to understand what underwriting is. Underwriting is ...