Mortgage Loans Non-QM Loan A mortgage that doesn’t meet the qualified-mortgage standards — often for self-employed borrowers.
Mortgage Loans Per Diem Interest Prepaid interest from the closing date through the end of the month.
Mortgage Loans Closing the Loan The point at which all loan documents are signed and funds disbursed.
Mortgage Loans Conforming Loan A mortgage that meets the size and underwriting guidelines set by Fannie Mae and Freddie Mac.
Mortgage Loans Conventional Loan A mortgage not insured or guaranteed by a federal government agency.
Mortgage Loans Funder The lender’s representative who releases loan funds at closing once conditions are met.
Mortgage Loans Home Equity Loan A lump-sum second mortgage secured by home equity, typically at a fixed rate.
Mortgage Loans Hybrid ARM A loan with a fixed rate for an initial period (3, 5, 7, or 10 years) then adjusts.
Mortgage Loans Interest Rate The percentage charged by a lender for borrowing money, expressed annually.
Mortgage Loans Interest-Only Loan A loan where the borrower pays only interest for a period before principal payments begin.
