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Points Explained |
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What are morgage points and when, if ever, does it make sense to pay them? |
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Fees Explained |
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What are the 'real' costs of my Morgage? This will help explain exactly where your money is going -
and where it shouldn't be going...
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Learn More 
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Morgage Glossary |
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Become an informed borrower by familiarizing yourself with common terms used throughout
the morgage process...
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Morgage Grace Period Defined...
The Grace Period is the period of time following the due date of your morgage wherein you are not
assessed a penalty for the late payment of your morgage. Most lenders provide a 15 day period after
your payment is due before they assess any fees for the late payment. For example, if your payment is
due on the 1st of January and you don't make a payment until January 14th then that 'late payment' would
fall within a 15 day Morgage Grace Period and so a late payment fee would not be assessed.
There is another 'Grace Period' that many people are not aware of: When a morgage is transferred from one
lender to another the borrower is legally entitled to a 60 Day Grace Period beginning the day the loan
is transferred. The law was created to protect borrowers because there are often many difficulties that
arise when a morgage is transferred from one lender to another. It is also important to note that this
60 Day Grace Period also means that a lender cannot report any late payments to the credit bureaus
during this period and may only report such a late payment if you remain behind on your payments after
the 60 Day Grace Period has expired.
Other Important Morgage Terms
Government National Morgage Association (GNMA, or Ginnie Mae) -
A federal agency that guarantees mortgage securities that are issued against pools of FHA and VA mortgage loans.
Graduated Payment Morgage (GPM) -
Morgage in which initial low payments (with potential negative amortization) increase regularly for several years and then level off.
Gross Income -
Total income before taxes or expenses are deducted.
Homeowners Warranty -
A type of insurance that covers repairs to specified parts of a house for a specific period of time.
Housing and Urban Development (HUD) -
A U.S. government agency established to implement federal housing and community development programs; oversees the Federal Housing Administration.
Housing Expense-to-Income Ratio -
The ratio, expressed as a percentage, that results when a borrower's housing expenses are divided by his/her gross monthly income.
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