Mortgage Rates

	Rate	Points	APR	Days Lock
30 Yr Fixed Rate- Conforming	6.000%	0	6.036%	60
30 Yr Fixed Rate- Conforming	5.875%	1	5.911%	60
15 Yr Fixed Rate- Conforming	5.375%	0	5.435%	60
15 Yr Fixed Rate- Conforming	5.125%	1	5.185%	60
30 Yr Fixed Rate- Jumbo	6.125%	0	6.142%	60
5/1 Yr ARM- Jumbo	4.750%	0	4.766%	60
5/1 Yr ARM- Conforming	5.000%	0	5.016%	60

AMORTIZED LOAN
A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity.

ARM
Adjustable Rate Mortgage, a loan with an interest rate that may change periodically over time.

"1/1" ARM = A loan with an interest rate that is adjusted annually. "3/1", "5/1", "7/1" and "10/1" ARMs = Loans that have a fixed interest rate during the initial period of 3, 5, 7 and 10 years, respectively, and thereafter have an interest rate that is adjusted annually.

APR
Annual Percentage Rate

BALLOON (payment) mortgage
Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

JUMBO LOAN
A loan that does not conform to the guidelines established by Fannie Mae or Freddie Mac or exceeds the conventional loan limit is called a Jumbo mortgage loan. These loan amounts can go up to three million dollars. Loan to value limits for Jumbo loans range from 60% to 95% depending on the loan amount. Currently $322,700-$3,000,000. These loans have higher rates.

LIEN
A claim or charge against property. Property is said to be encumbered by a lien and the lien must be removed to clear title.

MORTGAGE
A voluntary lien filed against property to secure a debt, usually a loan. To foreclose, the lender must often institute a court action and the borrower may have the right to reclaim the property after foreclosure.

POINTS (loan discount points)
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000).

PRIME RATE
The most favorable interest rate charged by lenders on short-term loans to qualified customers.

Rate
The initial interest rate applicable to the loan. For ARM loans, this rate is subject to change upward or downward after an initial period.

The following are definitions of some loan-related terms: