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

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Term Main definition
Scenario analysis
Determining how the interest rate and payment on an ARM will change in response to specified future changes in market interest rates, called "scenarios".
Scheduled mortgage payment
The amount the borrower is obliged to pay each period, including interest, principal, and mortgage insurance, under the terms of the mortgage contract. Paying less than the scheduled amount results in delinquency. On most mortgages, the scheduled payment is the fully amortizing payment throughout the life of the loan. On some mortgages, however, the scheduled payment for the first 5 or 10 years is the interest payment (see Interest Only Mortgages). And on option (flexible payment) ARMs, it can be the "minimum" payment as defined by the program (see Option (Flexible Payment) ARMs).
Second mortgage
A loan with a second-priority claim against a property in the event that the borrower defaults. The lender who holds the second mortgage gets paid only after the lender holding the first mortgage is paid.
Secondary markets
Markets in which mortgages or mortgage-backed securities are bought and sold.
Secure option ARM
An option ARM on which the initial rate holds for 5 years rather than one month.
Self-employed borrower
A borrower who must document income using tax returns rather than information provided by an employer. This complicates the process somewhat.
Seller contribution
A contribution to a borrower's down payment or settlement costs made by a home seller, as an alternative to a price reduction
Seller financing
Provision of a mortgage by the seller of a house, often a second mortgage, as a condition of the sale.
Servicing
Administering loans between the time of disbursement and the time the loan is fully paid off. This includes collecting monthly payments from the borrower, maintaining records of loan progress, assuring payments of taxes and insurance, and pursuing delinquent accounts.
Servicing agent
The party who services a loan, who may or may not be the lender who originated it.
Servicing release premium
A payment made by the purchaser of a mortgage to the seller for the release of the servicing on the mortgage. It has no direct relevance to borrowers.
Servicing transfer
When one servicing agent is replaced by another.
Settlement costs
Costs that the borrower must pay at the time of closing, in addition to the down payment.
Shared appreciation mortgage
A mortgage on which the borrower gives up a share in future price appreciation in exchange for a lower interest rate and/or interest deferral.
Short sale
An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house and remit the proceeds to the lender. It is an alternative to foreclosure, or a deed in lieu of foreclosure.

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