Connecticut First Time Home Buyer
Welcome to
Connecticut Mortgage
lending at its best..
We specialize in the following:
- Connecticut Mortgage Approvals Same Day
- Email Loan Disclosures
- Funding & Closing locally in 10-14 days
- Easy Online Connecticut Application
- Licensed mortgage professionals
- Lots of tips and help
Getting Started:
At
Connecticut First Time Home Buyer Loans Online, we
specialize as a full service residential
mortgage "banker" - a
professional who handles your complete mortgage financing transaction
in house. From processing the
loan application to preparing the final
closing documents, and even the day-to-day servicing of the loan,
we
know how to get you the best
Connecticut mortgage loan with the
best possible
interest rate.
First Time Home Buyer Loans Online has built a reputation on customer
satisfaction and referrals. Our vision has been our heritage and the
strength of our name, to be a leader in the
mortgage
lending arena.
Our unique corporate mission at
Connecticut Mortgage Loans Online is to fulfill the home financing and
related needs of our Connecticut customers and, in doing so, exceed expectations
for service and quality.
Connecticut First Time Home Buyer Questions
Connecticut Mortgage Lending Questions
Call Toll
Free (800) 208-2028
or
Click Inquire Online
As a direct
Connecticut
Mortgage lender, we have the power to get loans approved fast.
Connecticut Mortgage Loans and Connecticut Home Loans
Online.
Pre-Approvals
Apply today and we will provide you with
a Pre-Approval Certificate.
Then you can shop for your dream home
and:
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Terms and
Definitions
Number of fixed payments or years it takes to
repay the entire amount of the mortgage loan.
A legal document signed by a home buyer which
requires the buyer to assume responsibility for the obligations of a
mortgage made by a former owner.
Equal payments consisting of both a principal and
an interest component, paid each month during the term of the mortgage.
The principal portion increases each month, while the interest portion
decreases, but the total monthly payment does not change.
A mortgage which cannot be prepaid, renegotiated
or refinanced.
A mortgage loan which does not exceed 80% of the
appraised value or purchase price of the property, whichever is the lesser
of the two. Mortgages that exceed this limit must be insured.
The percentage of the borrower's gross income
that will be used for monthly payments of principal, interest, taxes,
space heating costs and condominium fees.
Non-payment of the installments due under the
terms of the mortgage(s).
The removal of all mortgages and financial
encumbrances on a property.
A legal procedure whereby the lender obtains
ownership of the property following default by the borrower.
The percentage of gross annual income required to
cover payments associated with housing (mortgage principal and interest,
taxes and secondary financing). Most lenders prefer that the DTI be no
more than 45%.
A premium which is added to the mortgage and paid
by the borrower over the life of the mortgage. The mortgage insurance
insures the lender against loss in case of default by the borrower.
A form of reducing term insurance recommended for
the borrower. In the event of the death of the owner or one of the owners,
the insurance pays the balance owing on the mortgage. The intent is to
protect survivors from losing their home.
The lender.
The borrower.
A mortgage which can be prepaid at any time,
without penalty.
Principal and interest due on a mortgage.
Principal, interest, taxes and insurance due on a
mortgage.
A sum of money paid to a lender for the privilege
of prepaying a mortgage in part or in full.
The right to prepay specified amounts of the
principal balance. Penalty interest may be incurred on prepayment options.
The amount you still owe the lender at any time.
The return the lender receives for loaning you
the money for the mortgage.
A mortgage loan where the interest rate is
established for a specific term. At the end of this term the mortgage is
said to "roll over" and the borrower and lender may agree to
extend to loan. If satisfactory terms cannot be agreed upon, the lender is
entitled to be repaid in full. In this case, the borrower may seek
alternative financing.
This is usually at a higher interest rate and
represents the difference between the price of the house and first
mortgage plus the downpayment.
In a mortgage, "term" is the actual
length of time for which the money is loaned, at that particular rate of
interest. After the term expires, you can either repay the balance of the
principal then owing or renegotiate the mortgage at current rates and
conditions.
A sum of money collected by some lenders to
offset expenses incurred in the lending transaction.
A mortgage where payments can be fixed from one
to five years, but the interest rate could change from month to month
depending on market conditions. If interest rates go down, the monthly
principal is reduced; if rates go up, the monthly payments might not cover
the interest owing and payments may be increased for the next term. Most
variable rate mortgages allow prepayment of any amount (with certain
minimums) on any monthly payment date and usually without penalty.
ADJUSTABLE-RATE MORTGAGE (ARM) - a
mortgage with an interest rate that changes periodically,
according to an index that is selected when the mortgage is
issued. The initial interest rate is lower than that for
fixed-rate mortgages, but monthly payments can go up or down
when the rate is adjusted.
ADJUSTMENT INTERVAL - the period of
time between changes in the interest rate for an
adjustable-rate mortgage. Typical adjustment intervals are
one year, three and five years.
ANNUAL PERCENTAGE RATE (APR) - a stated
interest rate that reflects all the financing costs of a
mortgage. The APR includes points, origination fees and
other finance charges in addition to the interest on the
mortgage, and includes them all in a yearly interest rate.
As a result, the APR is usually higher than the interest
rate alone. It also provides a benchmark for comparing
different types of mortgages based on the annual cost for
each loan.
APPRAISAL - an estimate of the value of
a property, made by a qualified professional called an
appraiser.
BALLOON (PAYMENT) MORTGAGE - usually a
short-term fixed-rate loan which involves small payments for
a certain period of time and one large payment for the
remaining amount of the principal at a time specified in the
contract.
BIWEEKLY MORTGAGE - a type of fixed-rate mortgage with
payments for half the usual monthly amount scheduled every
two weeks. Because you make the equivalent of 13 months of
payments every year, the loan term is shortened from 30
years to 18 or 19 years, and total interest cost are
substantially lower.
CAPS - consumer safeguards for
adjustable-rate mortgages that limit the amount monthly
payments can increase. An interest rate cap limits the
amount the interest can change, while a payment cap limits
the increase in monthly payment to a specific dollar amount.
CLOSING - the meeting between the
buyer, seller and lender (or their agents) where the
property and funds legally change hands. Also called
settlement.
CLOSING COSTS - the costs and fees
associated with the official change in ownership of the
property and with obtaining your mortgage that are assessed
at the closing or settlement. Closing costs include required
certifications, insurance, taxes and other fees, and
typically total between 3 and 6 percent of the mortgage
amount.
CREDIT REPORT - a report that documents
a borrower's credit history and current status. Borrowers
can examine their own credit reports, although most credit
reporting companies charge a fee to provide a report.
DEBT-TO-INCOME RATIO - the ratio,
expressed as a percentage, which results when a borrower's
monthly payment obligation on long-term debts is divided by
his or her net effective income (FHA/VA loans) or gross
monthly income (conventional loans).
DOWN PAYMENT - an amount paid in cash to the seller when a
home is purchased. The down payment is the difference
between the purchase price and the mortgage amount, and is
traditionally 10 to 20 percent of the purchase price,
although many loans are now available with smaller down
payments.
EQUITY - the difference between the
fair market value and current indebtedness, also referred to
as the owner's interest.
ESCROW - a special account set up by
the lender in which money is held to pay for taxes and
insurance. "Escrow" can also refer to a third
party who carries out the instructions of both the buyer and
seller to handle the paperwork at the settlement.
FHA (FEDERAL HOUSING ADMINISTRATION)
MORTGAGE - a loan insured by the Federal Housing
Administration. FHA mortgages require lower down payments
than conventional mortgages, and also feature less stringent
income and financial requirements.
FIXED-RATE MORTGAGE - a mortgage with
an interest rate that remains constant for the life of the
loan. The most common fixed-rate mortgage is repaid over a
period of 30 years; 15 year fixed-rate mortgages are also
available.
INDEX - an economic indicator, usually
a published interest rate, that determines changes in the
interest rate of an ARM. ARM rates are adjusted to reflect
changes in the index. The margin is the amount a lender adds
to the index to establish the actual interest rate on an
ARM.
INTEREST - the sum paid for borrowing
money, which pays the lender's costs of doing business.
LENDER BUY-DOWN MORTGAGE - a
convertible mortgage offering a discounted interest rate at
the beginning of the loan that gradually increases to an
agreed-upon fixed-rate over the first few years of the loan.
It provides lower initial payments and a stable final
monthly rate, but the final rate may be somewhat higher than
on a standard fixed-rate mortgage.
LOAN ORIGINATION FEE - the fee charged
by a lender to prepare all the documents associated with
your mortgage.
LOAN-TO-VALUE RATIO - the relationship
between the amount of the mortgage loan and the appraised
value of the property expressed as a percentage.
MORTGAGE INSURANCE - an insurance
policy the borrower buys to protect the lender from
non-payment of the loan. Private mortgage insurance policies
are usually required if you make a down payment that is
below 20% of the appraised value of the home.
PITI (PRINCIPAL, INTEREST, TAXES AND
INSURANCE) - the four components that (for most homeowners)
are included in the monthly mortgage payment. Principal and
interest are the portions of the payment assigned to repay
the mortgage itself; taxes and insurance are paid by your
lender into a special escrow account to pay for homeowners
insurance and property taxes.
