…or somewhat attractive..?
Let’s start with the easiest!
Mortgage - the cash money a bank loans you to buy a house.
They don’t just hand it over, they want to see what you’re getting, what neighborhood, what other homes are selling for…
You get the drift.
Every mortgage is a combination of principal and interest.
Principal? Actual cost (of whatever you’re buying)
Interest? What you pay them to loan you the money!
No such thing as a free lunch!
But lower interest rates mean big money to you. Seriously!
“Fixed rate” (FRM)? You get an interest rate and keep it forever.
“Adjustable Rate” (ARM)? It goes up and down, based on the economy.
APR (Adjustable Percentage Rates) are decided by the Fed. The government.
Based on the economy, and whatever…
Take away? You have ZERO control of the APR.
Nada.
Zilch.
BUT- the APR is very low p, right now. Crazy low.
But it’s starting to rise!
So, carpe diem! No time like the present.
Unless you WANT to spend more money..?
A “mortgage originator” is the bank that loans you the money to buy a house!
The “secondary” or “aggregator” buys your loan from the original loaner.
No biggie. It’s just what they all do!
I’ve got WAY more definitions and clarity to sprinkle around, but let me know what you want to know!
Seriously! In the (private) comments, ask me anything!
