| Loan Amount: |
Money borrowed that is usually repaid with interest to purchase property. |
 |
| Interest Rate: |
The amount of interest charged on a monthly loan payment; usually expressed as a percentage. |
|
| Length of Loan: |
The number of years required to pay off the principal and interest of the loan. |
|
| Discount Points: |
Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments. |
|
| Origination Fee: |
The charge for originating a loan; is usually calculated in the form of points and paid at closing. It is expressed as a percentage of the loan amount. |
|
| Closing cost: |
Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. |
|
|
