When you bought your property, you almost certainly signed a mortgage agreement that continues to be in consequence for a specific period, referred to as term. You can get information about the annual mortgage statement online. Here we are going to discuss glossary of mortgage terms:
Additional security costs
A Supplemental Security Costs (Mortgage Indemnity Guarantee policy) is taken to get the cost of an insurance policy that will cover your lender payment, so that he will not suffer losses. You have to pay a premium fee and the Supplemental Security along with your mortgage advance. Although you pay a premium, remember that this policy is to protect your lender and not for you.
The administration fee is the amount charged by your lender to begin work on the documentation part of your mortgage application. This includes the cost of home appraisal well. The administration fee will not be refunded even if your assessment was not carried out or if your application has been rejected.
Adverse credit happens when you have a poor credit history, bankruptcy, CCJ, or delinquent loans. adverse credit can also be called bad credit, bad credit, or it can be said that you have a low credit score.
Agricultural restriction is the rule that will restrict you from holding a property if your work is in any way associated with agriculture.
The annual percentage rate
Annual Percentage Rate is the rate at which you borrow money from a lender. This includes all initial costs and ongoing costs that you will pay for the duration of the mortgage. As the name suggests, the annual percentage rate, or APR, is the cost of mortgages cited in the annual rate. The annual percentage rate is a good way to compare offers from different lenders based on the annual cost of each loan.