We make it easy, no matter where you are.
We make it easy, no matter where you are.

Home Loan Definitions

Business People High-Fiving | Home Loan Definitions | Mortgage Broker Texas

Loan Origination Fee
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.

Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of the mortgage amount. For example: on a $150,000 loan, 1 point would equal $1,500.

Appraisal Fee
The fee for having the house appraised may be incorporated into the closing costs or payment may be required by the lender at the time the loan application is submitted.

Credit Report
The lender uses a credit report to determine the creditworthiness of the loan applicant. This fee is often paid when the loan application is submitted.

Interest Payment
Typically the buyer is required to pay interest on the mortgage loan to cover the time between the closing date and when the first mortgage payment period begins. For example: If closing is on May 15. Your first monthly payment begins to accrue interest on June 1 with your first mortgage payment due July 1. At closing an interest payment covering the accrual period between May 15 and May 31 may be required.

Escrow Account
At closing a payment may be required to fund the escrow account if the lender is paying home insurance, property taxes and/or other expenses out of the escrow account. These are not technically Closing Costs and are considered pre-paid items as you will generally have to pay taxes and insurance on the home even if there is no loan.

More from Global Home Finance

At Global Home Finance, we're excited to introduce our revolutionary Buy Before You Sell program, featuring a 0% interest bridge loan designed to make your homebuying journey smooth and stress-free.
Offers

Buy Before You Sell

Your Path to Homeownership Welcome to Global Home Finance Contact Us Today! Are you ready to secure your dream home with ease? At Global Home

Are you tired of jumping through hoops to secure a mortgage? Say goodbye to the headaches and hello to simplicity with our Hard Money Program. At Global Home Finance, we're cutting through the red tape to get you the financing you need, when you need it.
Offers

Hard Money Program

Are you tired of jumping through hoops to secure a mortgage? Say goodbye to the headaches and hello to simplicity with our Hard Money Program.

We're here to help

Let's Get Started

We help you find the custom mortgage solution that fits your needs, whether you are buying your first home or refinancing an existing mortgage. We are here to help you to find the best mortgage available.