Home equity loans Glossary Part 1
Home equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During the process, you will come across a variety of terms and acronyms. We have gathered together some of the basic terms that you come across during your home equity loan.
(Part. 1) Letter A
HOME EQUITY LOAN
Adjustable Rate Mortgage (ARM):
This type of mortgage has an interest rate that will change over time. Typically the interest rate will be lower than fixed mortgage products.
Amortization:
Loan payments that will cover both principle and interest in one payment. Your lender will likely give you an amortization schedule outlining your payment schedule.
Annual Percentage Rate (APR):
This is the cost of credit on a yearly basis.
Appraised Value:
An appraiser will determine the value of your home based on experience, market data, and other information.
