Mortgage Terminology

Written by Zachery Adam

June 28, 2021

Mortgage Terminology

Mortgage Terminology

It’s okay that you’re not a mortgage expert: that’s our job. But throughout your experience, you may come across some mortgage terminology that you need to understand a little better. We offer a comprehensive glossary on our website, but we thought it would be fun to pull a few concepts and give you some easy ways to understand and remember what they mean. Don’t worry, though; there won’t be a quiz at the end.

Amortization

The term “amortized” is often thrown around without much care for whether or not it’s understood. Amortization means a loan is paid off through a series of fixed amounts, and it’s paid fully at the end of the loan schedule. Monthly payments are listed; a portion of each payment goes toward interest while the rest is applied to the principal.

You can check out the GoPrime Mortgage of West Asheville online mortgage calculator to learn more, but we also encourage you to reach out to us directly.

Debt Ratio

Also called Debt-to-Income Ratio, this is the number by which we can determine many things about the kind of loan that will work for you. It consists of your monthly debt payments divided by gross monthly income. Way back in 2016, we talked a little about debt ratio on our blog.

In that blog post, we discussed the ideal debt-to-income ratio and the magic number of 43%. Before buying a home, you should work on getting your debt ratio below 43%. That will help you get excellent terms for your home loan. 

Maturity

Throughout the loan process, and as you make your mortgage payments, you’ll hear the use of the term “Maturity.” While it sounds complex, it just refers to the date that your mortgage balance is due. The maturity date will depend on many factors, including your specific terms and how much principal you’ve already paid.

Maturity is also sometimes referred to as the renewal date. With some specific loans, homeowners can opt to renew their mortgage if given an offer by the existing lender. Or they can refinance their mortgage at this time. Or, of course, you can pay it off. 

ARM

When it comes to mortgage terminology, an ARM is not a body part. It stands for Adjustable Rate Mortgage, and they are a typical mortgage process. The interest rate that is applied to the outstanding balance will vary throughout the life of the loan. For an established period, the initial interest rate is fixed. After that time frame, the rate will change, sometimes monthly or yearly.

You may also hear a couple of other terms concerning an ARM:

Do you want to understand the mortgage process better and get preapproved for your next home purchase? Call the team at GoPrime Mortgage today. GoPrime Mortgage in West Asheville is here to help. Call us today at 828-348-1907 –Zachery Adam at GoPrime Mortgage in West Asheville.

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As a first-time homebuyer, you may believe that you have to get your loan through a bank or credit union. But that’s not the case. An independent mortgage lender often provides more options than a bank can. Shop around. See who gives you the best deal on a mortgage loan that’s right for your circumstances. You may be surprised.

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Getting pre-qualified for a mortgage loan is the best first step to take when you want to buy your first home.

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To get a quick, down-and-dirty — and completely unofficial and nonbinding — idea of what your monthly mortgage payment would be based on the cost of a house.

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Get good, professional advice for what to do and what not to do when you’re seeking to buy your first home.

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As you explore down the rabbit hole of mortgage loans, you inevitably will find terms and acronyms that you don’t understand. Look here for help.

Mortgage Loan Products

GoPrime Mortgage, Inc. offers a wide range of mortgage loan types. To understand the differences, read this page and then talk to Zachery Adam and his Team.

Contact Info

862 Haywood Road Asheville, NC 28806

828-348-1907

WestAsheville@GoPrime.com

Zachery Adam

Zachery Adam

Branch Manager, Loan Officer

"What we do is so far more important than lending and buying houses. We are in the business of facilitating dreams and honoring the start of a new home.” 

Daniel Priest

Daniel Priest

Loan Officer

"I enjoy working with clients new to the homebuying process. Remembering what it was like for my family, I will take my knowledge of the mortgage process and make it easier.” 

Teona Rodriguez

Teona Rodriguez

Marketing

"“I wake up every morning with incredible appreciation. I love what I do.” ” 

Jordynn Webb

Jordynn Webb

Loan Officer Assistant

"My eventual goal is to become a loan officer. I love working within the community and being a part of the GoPrime Mortgage team.” 

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