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Archives: Glossary

Variable Rate Mortgage

A variable rate mortgage is a mortgage that has an interest rate that can change during the term of the loan. A variable rate is always attached to the lender’s prime rate. If the prime rate goes up or down, then the variable rate effectively goes up or down. Benefits Of A Variable Rate Mortgage …

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Title Insurance

Title insurance is insurance that protects the lender and the home owner in the event there are any title defects, or if there is any fraudulent mortgage taken on the title of the property. In every mortgage transaction, a borrower is require to take out a title insurance policy. Title insurance should not be confused …

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Term

A mortgage term is the time period which the mortgage agreement is in effect. Mortgage terms can range from 6 months and up to 10 years. The mortgage term is set at the time of the approval of the mortgage. The mortgage term shouldn’t be confused with the amortization period of the mortgage, as the …

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Renewal or Renewing

A mortgage renewal or renewing a mortgage is when a home owners accepts the offer or negotiates a new term with their existing lender at the maturity date of their mortgage. A mortgage renewal or renewing a mortgage is usually done on the maturity date of the mortgage without penalty, however some lenders will allow …

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Refinancing

Mortgage refinancing is changing the term of the mortgage before the maturity date of the mortgage. A borrower refinancing their mortgage will be breaking their current mortgage, and often incurring an applicable penalty for early repayment, and replacing their mortgage with a new mortgage. Home owners are often refinancing their mortgage to get a lower …

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