Current Mortgage Rates: Richmond, VA
3.000% (3.001% APR) 30yrs
2.500% (2.617% APR) 15yrs
as of 06/18/21
Read More

Building on Trust™

RatePro

Glossary of Mortgage Terms

Search for glossary terms (regular expression allowed)
Term Main definition
Bad faith estimate
The practice of low-balling figures for settlement cost on the Good faith estimate to make them appear more attractive to mortgage shoppers.
Balance
The amount of the original loan remaining to be paid. It is equal to the loan amount less the sum of all prior payment of principal.
Balloon
The loan balance remaining at the time the loan contract calls for full repayment
Balloon mortgage
A mortgage which is payable in full after a period that is shorter then the term. In most cases, the balance is refinanced with the current or another lender. On a 7-year balloon loan, for example, the payment is usually calculated over a 30-year period, and the balance at the end of the 7th year must be repaired or financed at that time. Balloon mortgages are similar to ARMs in that the borrowers trades off a lower rate in the early years against the risk of a higher rate later. They are they are riskier then ARMs because there is no limit on the extent of a rate increase at the end of the balloon period.
Bimonthly mortgage
A mortgage on which the borrower pay half the monthly payment on the first day of the month, and the other on the month 15th.
Biweekly mortgage
A mortgage on which the borrower pays half the monthly payment every two weeks. Because this result in 26(rather than 24) payment per year, the biweekly mortgage amortizes before term.
Blemished borrowers
Borrowers with one or more of the following risk factors: they can only make a very small or no down payment; they cannot fully document their income and assets; their property is something other than a single-family home; their loan is intended to raise cash or to purchase an investment property; they have low credit scores; their income is low relative to their expected total obligation; and their mortgage carries an adjustable rate that will result in substantially higher payments in a few years.
Bridge loan
A short-term loan, usually from a bank, that “bridges” the period between the closing date of a home sale. Unsecured bridge loans are available if the borrower has a firm contract to sell the existing house. Secured bridge loans are available without such a contract.
Builder-financed construction
Having the builder finance the construction
Buy-down
A permanent buy- down is the payment of points in exchanges for a rebate by the lender which reduction in the early years.
Buy-up
Paying a higher interest rate in exchange for a rebate by the lender which reduces upfront costs.

Mortgage Rate Meter


Testimonials
 
914817
' We found Rate Pro mortgage after working with several other mortgage companies all of whom failed to grasp our complicated financial situation and ... more '
5.0/5.0
by zac5
890518
' We just purchased our first home and went through RatePro Mortgage to do our lending. I have worked in both big and small retail banks so I have seen ... more '
5.0/5.0
by zuser20140424054854787
838849
' This was my 3rd home purchase and 3rd different mortgage company, and Rick and his staff at RatePro were by far the best. Rick was timely, honest, ... more '
5.0/5.0
by jweimer1968
RatePro