Mortgage Loans Float-Down Option A provision allowing the borrower to reduce the locked rate if market rates fall.
Mortgage Loans Funder The lender’s representative who releases loan funds at closing once conditions are met.
Mortgage Loans HELOC Home Equity Line of Credit — a revolving credit line secured by the equity in a home.
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.
Mortgage Loans Jumbo Loan A mortgage that exceeds the conforming loan limits and is therefore non-conforming.
Mortgage Loans Assumable Mortgage A mortgage that a buyer can take over from the seller, often at the seller’s existing rate.
