Current Mortgage Rates: Richmond, VA
2.750% (2.807% APR) 30yrs
2.125% (2.130% APR) 15yrs
as of 09/23/21
Read More

Building on Trust™

RatePro

Glossary of Mortgage Terms

Search for glossary terms (regular expression allowed)
Term Main definition
Late fees
Fees that lenders are entitled to collect from borrowers who don't pay within the grace period. Most mortgage notes offer borrowers a 10 or 15-day grace period, with a late charge of about 5% on payments received on the 16th or later.
Late payment
A payment received after the grace period stipulated in the note. Most mortgage grace periods are 10 or 15 days.
Lease-to-own purchase
A transaction in which a hopeful home buyer leases a home with an option to buy it within a specified period.
Lender
See Mortgage lender.
Lien
The lender's right to claim the borrower's property in the event the borrower defaults. If there is more than one lien, the claim of the lender holding the first lien will be satisfied before the claim of the lender holding the second lien, which in turn will be satisfied before the claim of a lender holding a third lien, etc.
Loan amount
The amount the borrower promises to repay, as set forth in the mortgage contract. It differs from the amount of cash disbursed by the lender by the amount of points and other upfront costs included in the loan.
Loan discount fee
The term used to describe points on the Good Faith Estimate.
Loan level price adjustments
The risk-based pricing system used by Fannie Mae,
Loan modification
See Mortgage modification.
Loan officer
Employees of lenders or mortgage brokers who find borrowers, sell and counsel them, and take applications.
Loan provider
A lender or a mortgage broker
loan-to-value ratio
The loan amount divided by the lesser of the selling price or the appraised value. Also referred to as LTV. The LTV and down payment are different ways of expressing the same set of facts.
Lock
An option exercised by the borrower, at the time of the loan application or later, to "lock in" the rates and points prevailing in the market at that time. The lender and borrower are committed to those terms, regardless of what happens between that point and the closing date.
Lock commitment letter
A written statement from a lender verifying that the price and other terms of a loan have been locked. Borrowers who lock through a mortgage broker should always demand to see the lock commitment letter.
Lock failure
The inability or unwillingness of a lender to honor a mortgage price that a borrower had believed was guaranteed.

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