Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

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There are 4 names in this directory beginning with the letter N.
Negative Amortization
This is essentially unpaid interest that gets added to the loan balance. Negative amortization occurs on a Graduated Payment Mortgage, where the initial monthly payments are so low that they don't cover the accrued interest.

Negative Compensating Factor
Compensating factors are strengths on a loan application that can help borrowers secure a loan. Negative compensating factors can do the opposite. Bankruptcies, foreclosures, late payments can all be considered negative compensating factors.

Note Rate
This is your interest rate.

Notice of Value (NOV)
This is the VA appraisal, which spells out the independent expert's assessment of the property's value. Ultimately, it's up to a lender's staff appraisal reviewer to issue the final notice of value.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
20.0%
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Term in years
Number of years you have to pay.
years
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Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
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Property tax
Enter your property tax here if you know it.
per year
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Home insurance
Most lenders require home insurance. Enter its price here.
per year
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PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
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Your total monthly payment


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Principal & Interest
$
Home insurance
$
Property taxes
$
PMI
$