Mortgage Glossary - Terms

Definition of notary fees. When closing your mortgage, a notary charges for his or her services.

A stated income loan is a type of low-documentation loan. Your lender asks how much you make, you throw out a number, and they run with it.

A stated income stated asset loan (SISA) is a type of low-documentation loan. Your lender does not require any proof of income or assets when you apply for the loan.

A good faith estimate is a statement showing the ballpark costs a lender will charge you. While some people think a good faith estimate is a firm quote, there's plenty of wiggle room in those prices. Nevertheless, you get a decent idea of what you'll be paying with a good faith estimate.

Conforming loans are loans that pass muster with Fannie Mae and Freddie Mac. You may want to get a conforming loan because rates are lower and funding is easier.

Jumbo loans are loans larger than the limits set by Fannie Mae and Freddie Mac. These monstrous mortgages get you more money, but you have to pay a price. Find out what a jumbo loan is.

Definition of a mortgage. A mortgage is an agreement to...

Here are some common closing costs that will be specific to your lender. When comparing mortgages, it's important to look closely at the closing costs from each lender. Some closing costs will be the same no matter who you get your loan from – such as document recording fees that you pay to your local government. However, other costs can change or be negotiated.

Definition of underwriting fees. Fees charged for evaluating your riskiness as a borrower.

Definition of appraisal fee. The appraisal fee pays for somebody to do an appraisal on your home. An appraisal is…

Definition of origination fee. A fee related to establishing your mortgage.

A description of how to manage closing costs. Just because one provider has lower closing costs doesn't mean it's your best bet. You have to look at your mortgage as a complete package -- including closing costs, interest rates, restrictions, and other features.

Definition of assumable mortgage. An assumable mortgage may be taken over by another person…

Definition of short sale. When related to loans, a short sale is the sale of an asset for less than the loan balance...

Definition of discount points and origination points. A percentage of the loan that you pay up front.

Definition of escrow fees. The fees you pay related to coordinating escrow accounts and the transfer of your money.

Definition of prepaid interest. Interest you pay at closing for the remainder of the month.

A stated asset loan is a type of low-documentation loan. Your lender asks how much money you have stashed away, and they take your word for it.