Barbara O'Neill

Adjustable Payment Mortgage               Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan.

Balloon Payment Loan                             A fixed rate loan that is amortized over 30 years but becomes due and payable at the end of a certain term.  May be extendable or may roll-over into another type of loan.

Buy-Down Loan                                         Buy-Down loans are fixed rate loans where the interest rate and payment are reduced for a specific period of time by paying the interest up front to subsidize the lower payment.

Conventional Loan                                    Conventional loans are sometimes more lenient with the appraisal and condition of the property.  Conventional loans are not government insured and usually have higher down payment requirements.

FHA Loan                                                     FHA loans are insured by the Federal Housing Administration under H.U.D.  They offer a low down payment and are easier to qualify for than conventional loans.  Appraisal and property condition rules will be applied and loan amounts are limited.

Fixed Rate Loan                                         A fixed rate loan has one interest rate that remains constant throughout the life of the loan.

Graduated Payment Mortgage               A fixed rate loan that has payments starting lower than a standard fixed rate loan, which then increases by a predetermined amount each year for a set number of years.

Non-Qualifying Loan                                 Also called an Assumable Loan, Non-Qualifying loans are pre-existing loans which can be assumed by a buyer from the seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then starts making payments.