Henri Martin Real Estate

Bristol, Farmington, Burlington, Southington,
 Plymouth and Plainville
Real Estate
.

531 Broad St., Bristol, CT.  06010  Phone:  860-589-0101

 

 


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Make Your Mortgage The Right Fit!

Mortgages to meet everyone's needs.  These summaries will help you narrow your search.

Adjustable Rate Mortgage (ARM)

A mortgage which allows the lender to adjust the mortgage's interest rate periodically on the basis of changes in a specified index.  Interest rates may move up or down, as market conditions change.  The change in interest rate will result in a change in the periodic payments due under the mortgage.  ARMs are attractive when short-term interest rates are trending lower.

Federal National Mortgage Association

(FNMA)

The U.S.'s largest supplier of mortgages to home buyers and owners, a corporation established by Congress and owned by stockholders.  It is commonly referred to as "Fannie Mae," this government-sponsored enterprise is chartered by Congress.  This federally chartered agency buys mortgages from lending institutions, pools them with other loans, and sells shares to investors.  Detailed information may be found at http://www.fanniemae.com

 

Balloon Mortgage

Usually a short-term fixed-rate loan that involves small payments for a certain period of time with the balance due in a single, large payment at a time specified in the contract.  Whenever the balloon mortgage becomes due, the entire unpaid balance is due.  Generally, the homeowner must either refinance or sell the property.

Fixed-Rate Mortgage

The interest rate you pay and the monthly principal and interest payments are agreed upon from the outset and will not change throughout the entire term of the mortgage.

Buy-Down

The payment of extra money on a loan now so as to provide a lower interest rate over either a given period or over the life of the loan.  To buy-down a mortgage, the buyer pays additional points to the lender, which will decrease the interest rate for a specific period.

Government National Mortgage Association

(GNMA)

A government-owned corporation within the U.S. Department of Housing and Urban Development, it is also referred to as "Ginnie Mae".  This government agency guarantees the payment of principal and interest on all of its pass-through securities, and its guarantee is backed in turn by the full faith and credit of the U.S. Government.

Conforming Loan

Conventional home mortgages, first mortgages up to loan amounts mandated by Congressional directive, which meet the qualifications for sale or delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).

Graduated Payment Mortgage(GPM)

A mortgage that usually starts the borrower with low payments that are gradually increased over five to ten years, before leveling off for the reminder of the term of the loan until the loan is fully amortized.  Negative amortization usually occurs until the payment reaches the level payment stage. Usually government insured loans.  (VA or FHA)

Construction Loan

A structured, short-term loan to provide funds necessary to begin construction on buildings or homes.

Growing Equity Mortgage (GEM)

This is a long-term mortgage whereby the borrower agrees to increase his payment each year by an agreed amount.  The added money per payment is applied directly to the outstanding principal on the mortgage.  The mortgage thereby is paid off in a shorter number of years.



Conventional Mortgage

A mortgage loan made by an institutional lender without the inclusion of government guarantees such as VA or FHA loans.

Renegotiable Rate Mortgage (RRM)

Similar to an Adjustable Rate Mortgage, this type of mortgage allows the interest rates and payments to be adjusted periodically according to an index.

 

 

Deferred Interest Mortgage

A mortgage in which the payment is not sufficient to cover the principal and the interest and the payment portion of the interest is postponed until a certain date at which time the interest postponed is added to the principle owing.

Reverse Annuity Mortgage (RAM)

A type of mortgage where the property's equity serves as security for periodic payments made by the lender to the borrower.  Mortgage is generally paid out upon the sale of the property.

 

Federal Home Loan Mortgage Corporation

(FHLMC)

The Federal National Mortgage Association is a congressionally chartered, shareholder-owned company and is the largest national supplier of home mortgage funds.  It is commonly known as Freddie Mac.  The company buys mortgages from lending institutions, pools them with other loans and sells shares to investors.  Detailed information may be found at http://www.freddiemac.com

 

 

Rollover Mortgage (ROM)

A mortgage where the payments are only guaranteed for three, four, or five years.  The borrower is allowed to refinance at the end of the term at the interest rate then applicable.

Federal Housing Administration (FHA)

An agency of the federal government, the Division of the Department of Housing and Urban Development that sets standards for the underwriting of private mortgage and insures residential mortgages made by private lenders.

 

Shared Appreciation Mortgage (SAM)

It is a loan arrangement where two or more parties participate in the purchase of real estate and share the appreciation and tax deduction.  Similar to shared equity mortgages.

Federal Housing Administration (FHA) Loans

Federal Housing Administration (FHA) low-rate loans are available to Americans with smaller incomes who are interested in modestly priced homes.  Down payment requirements are usually lower than the prevailing ones.

Veterans' Administration Loans

Mortgage loans to veterans by banks, savings and loans, or other lenders that are guaranteed by the Veterans' Administration, enabling veterans to buy a residence with little or no money down.

 

Wraparound Mortgage

A secondary financing option in which a new larger mortgage is created to encompass the first mortgage.  This large second mortgage is used to preserve the low interest rate on the first mortgage for a potential buyer.

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