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When you first apply for a mortgage refinancing you may feel youve stepped into a different culture with a language all its own. More than likely your mortgage refinancing professional is throwing many new terms and expressions your way. Its the responsibility of that same mortgage refinancing professional to make sure you understand everything thats being explained to you so you should never hesitate to ask them to stop and clarify. However if you can approach your application meeting armed with some familiarity with mortgage refinancing terms everyone can be more comfortable from the very beginning. Familiarize yourself with the following and youll be a step ahead of the average firsttime borrower.
HUD HUD stands for Housing and Urban Development and refers to the US Department of Housing and Urban Development Settlement Statement documents pertaining to the house being financed. When your loan officer talks about having you sign the HUD they are referring to that settlement statement. The HUD will detail all payoff information including any fees associated with your mortgage refinancing loan.
LTV and CLTV LTV and CLTV stand for Loan to Value and Cumulative Loan to Value or Combined Loan to Value. LTV refers to the percentage of the homes value that is being financed. Thus an loan for a home constitutes LTV. Higher LTV loans may carry higher interest rates and mortgage refinancing insurance than lower LTV loans. CLTV refers to the combined amount being financed between two loans for the same property. If the home mentioned above has a first mortgage refinancing of and a second mortgage refinancing of the LTVs of those loans would be and respectively for a CLTV of .
Keyword:
Mortgage Professional Mortgage Insurance Housing Urban Development
HUD HUD stands for Housing and Urban Development and refers to the US Department of Housing and Urban Development Settlement Statement documents pertaining to the house being financed. When your loan officer talks about having you sign the HUD they are referring to that settlement statement. The HUD will detail all payoff information including any fees associated with your mortgage refinancing loan.
LTV and CLTV LTV and CLTV stand for Loan to Value and Cumulative Loan to Value or Combined Loan to Value. LTV refers to the percentage of the homes value that is being financed. Thus an loan for a home constitutes LTV. Higher LTV loans may carry higher interest rates and mortgage refinancing insurance than lower LTV loans. CLTV refers to the combined amount being financed between two loans for the same property. If the home mentioned above has a first mortgage refinancing of and a second mortgage refinancing of the LTVs of those loans would be and respectively for a CLTV of .
Keyword:
Mortgage Professional Mortgage Insurance Housing Urban Development