1-407-575-5392
Menu

Finance Roadmap - Understanding Financing

NEXT
PREV

Finance Roadmap

Understanding Financing

3.1 Don't be intimidated by the jargon used in financing. Here are a number of key terms you'll see frequently in your loan application process.

  • Credit report: Request your lender to order one from a third party credit agency such as Equifax, Experian or Trans Union. A credit report should contain information on all your outstanding loans and repayment history, and will typically cost under fifty dollars.
  • Application/processing fee: This is the lender's fee for determining your capacity as a borrower and will usually be charged upon closing of the loan. Expect a price tag of a couple of hundred dollars.
  • Annual percentage rate (APR): The APR expresses the sum total of all your borrowing costs as a interest rate percentage charged on the loan balance.
  • Indexes: Changes in indexes such as the Federal Funds Rate and the Treasury Bill are used to periodically readjust the interest rates in adjustable rate mortgages (ARMs).
  • Points: When mortgage companies are competing by offering lower interest rates, they may charge you a "point", a one-time pre-paid interest fee, calculated as a percentage of the loan. Points are considered part of the cost of credit to the borrower, and part of the investment return to the lender. They may range from 0.25% to 2% of the loan balance, and are usually paid up front. One point equals 1%.
  • Appraisal cost: This is the fee charged by an independent appraiser who may be hired by your lender to evaluate the property's purchase price, condition and size in relation to similar recent neighborhood sales. This information is necessary to the lender because it ensures repayment in case the borrower defaults, forcing the lender to sell the property.
  • Miscellaneous fees: Various costs will be incurred during the processing of your loan request, such as notary, courier, county recording fees and title company escrow fee.
  • Pre-payment penalties: A prepayment penalty is a provision of your contract with the lender that states that in the event you pay off the loan early, you will pay a penalty. Penalties are usually expressed as a percent of the outstanding balance at time of prepayment, or a specified number of months of interest. They often decline or disappear altogether with the passage of time.



All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law. The source of the listing data is as follows: My Florida Regional MLS (updated 7/20/17)

Listing Search



Translate Tool

Featured Listings
Windermere Real Estate
$3,150,000
6 BED
7 BATH
Welcome to 2nd Avenue, Downtown Windermere’s most sought after address. Gracefully adorned by the peace and tranquili... Read More
Windermere Real Estate
$1,575,000
4 BED
2.5 BATH
This beautiful Butler Chain of Lakes 4 BR, 2 1/2 Bath home is in the charming town of Windermere, tucked away on the p... Read More
Windermere Real Estate
$4,195,000
5 BED
6 BATH
This lakefront estate has luxury that abounds from the moment your eyes meet with an unproceeded location on the Butler ... Read More
Windermere Real Estate
$5,650,000
5 BED
4.5 BATH
LAKEFRONT ISLEWORTH ESTATE, 400'' shoreline on Lake Isleworth, 1 of 11 lakes on the 6, 500 acre famed Butler Chain of ... Read More
Windermere Real Estate
$3,200,000
5 BED
6 BATH
ELEGANT ESTATE in the highly sought guard-gated community, The Reserve at Lake Butler Sound. Perfectly positioned on ne... Read More
Contact Wendy Morris

407-575-5392

Wendy Morris LLC
DBA Wendy Morris Realty
Licensed in the State of Florida
BK 3146762
14832 Speer Lake Drive
Winter Garden, FL 34787

Your privacy is our utmost concern. We will never sell your personal information. Privacy Policy
©2011 -2017 windermerehomes.net - all rights reserved. | Site Map