While purchasing a home certainly requires us to jump through a lot of legal and financial hoops, refinancing is not significantly different in terms of complexity. However, if you master a bit of the “lingo” of the mortgage industry, you will feel much more in control of the process. For example, amortization is simply a fancy word that refers to how the payments are structure at intervals (generally monthly). Acceleration means that the lender can demand a mortgage loan balance be repaid immediately if the borrower doesn’t make their agreed-upon payments. And a pre-payment penalty, which is pretty rare these days, is something you should make sure is not attached to your mortgage.
This entry was posted on Tuesday, June 18th, 2013 at 6:14 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.