The Pepper Group
Diversified

3865 E Via Del Verdemar Tucson, AZ 85718

(520) 977-0003
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Real Estate Financing



Adjustable Rate Mortgage (ARM):
An adjustable mortgage has an interest rate tied to a moving index figure such as the T-Bill rate. The interest rate can move up or down periodically, which can cause your payments to move accordingly. Adjustable loans are an excellent way to help first-time buyers get a lower payment and become homeowners.

Annual Percentage Rate (APR):
The interest cost for your loan (including your closing cost) calculated over a one year period.

Closing Costs:
A sum paid by borrowers and sellers to complete the closing of a mortgage loan. Costs may include the loan origination fee, discount points, title insurance, escrow fees, document recordings fees, and prepaid escrow payment.

Conventional Loan:
A mortgage loan that is not insured by a federal agency.

Deed of Trust:
The document that pledges the subject property as collateral for the repayment of the loan.

Escrow:
Opened at the beginning of the transaction, all participants in the contract entrust their funds and property with a neutral third party, usually a title company, for safekeeping. When all of the funds and property have been dispersed and the escrow account is empty, escrow is closed.

Fixed-Rate Mortgage:
A mortgage with an interest rate that remains the same for the life of the loan.

Impound Account:
An account established by a lender to collect a borrower's property tax and insurance payments. Impound accounts are required on mortgages with down payments of 10 percent or less. Most lending institutions add this amount to your monthly mortgage payment for a total monthly payment figure.

Loan-to-Value (LTV) Ratio:
The ratio of the amount of money owed on a home to the home's value. The difference between these two figures is the down payment.

PITI:
Principal, interest, taxes and insurance - the primary components of a monthly mortgage payment.

Private Mortgage Insurance (PMI):
Insurance issued by private companies which protects lenders against a loss if a borrower defaults on a mortgage with a low down payment (e.g., less than 20 percent).





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The Pepper Group™
Diversified Real Estate
3865 E Via Del Verdemar Tucson, AZ 85718
1-520-977-0003
Tucson Real Estate