Mortgage Lingo

There are so many different terms that are associated with mortgages that you probably will feel a bit shell shocked when trying to decipher what the words mean and whether or not they affect you or your policy. Because of this, we wanted to help you clear up any confusion you may have by explaining some common mortgage terms so that you are not left stumped when you come across a word you have never heard before. Don't let the mortgage lingo be the thing that fools you into choosing a less than perfect plan.

Adjustable Mortgage Rates

Adjustable mortgage rate is a term often used to describe a plan in which the interest rate on the monthly payments are not fixed and thus can be changed when necessary. Having an adjustable mortgage rate means that you cannot be sure that you will be paying the same amount of money on your mortgage payment from month to month, nor can you be certain that your plan will be fully paid off within a certain period of time. Don't hesitate to get a plan like this though, because they offer a bit more flexibility than some other plans might.

Mortgage Price

The term mortgage price is referring to the actual cost of taking out the mortgage, not including the cost of the home. For instance, when you get a mortgage you are making a plan that enables you to have a long period of time in which you are able to pay back the loan. For this reason, a mortgage price exists to allow the mortgage companies to profit in their business. A mortgage price is what the interest payments that you make calculate up to as well as any other lender's fees or late payments that you may have to make over the course of your mortgage plan.

Second Mortgage

A second mortgage is a type of mortgage in which a person who is paying for a home takes out a loan and uses their mortgage payment as collateral. Thus, if the person is unable to pay for the amount of the loan that they have taken out, then the company will have rights to the home. A second mortgage can only be taken out in the amount that you have paid for the home thus far and therefore does not include the entire price of the home. Many people take out second mortgages to pay for large expenses like college or graduate school.

If you have any more questions about Las Vegas mortgages, please visit our Frequently Asked Questions page.