May
26

Mortgage Vocabulary for First-Time Coop and Condo Buyers

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Confused by mortgage lingo?  HUD has an entire glossary for you:   

Here’s some samples:

Points:  1% of the loan amount to lower the interest rate, or cover some fees involved with the transaction

 Float-Down:  After locking in your rate, the lender may give you the opportunity to lower your rate if the market rate falls.

Margin:  On Adjustable rate loans, the margin is how much above the index you are going to pay.

Cap: On Adjustable rate loans, the cap is the most the rate can increase in one year.

 Walls in Insurance:  additional insurance that banks may require insuring what’s inside the apartment.

 See the full article and video on ny1.com.

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