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    Mortgage Glossary

Refinance:

The process in which you replace your original mortgage loan with a new one to take advantage of lower interest rates, better terms, or to get cash. An alternative is taking out a second mortgage, which involves the same process as refinancing, but adds a junior lien on your property.

 


 

30 

year 

fixed

15 

year

 fixed

5/1

Treasury

ARM

3/1

Treasury

ARM

1 Year

Treasury

ARM

6 Month

LIBOR 

ARM

12

MAT

ARM

5 Year Ballon

7 Year Ballon

I want a stable

monthly payment

I want to buy as 

much house as I can

I plan to own my house in 5 years

I believe interest rates

are likely to fall

 believe interest rates

are likely to rise

I need flexible monthly

payments

I want to avoid

negative amortization

I want the lowest 

possible payments

 I plan to refinance

within 5 years

= Highly applicable

= Moderately applicable

= Least applicable

 

30 

year 

fixed

15 

year

 fixed

5/1

Treasury

ARM

3/1

Treasury

ARM

1 Year

Treasury

ARM

6 Month

LIBOR 

ARM

12

MAT

ARM

5

Interest

Only

Purchase Money

Refinance

Home Equity

n/a n/a n/a n/a n/a n/a n/a n/a

 Debt Consolidation

n/a n/a n/a n/a n/a n/a n/a

 Zero or low down  payments

n/a n/a n/a n/a n/a n/a n/a

Stated income/ 

niche products

n/a n/a n/a n/a n/a n/a n/a

Jumbo loans

n/a n/a n/a n/a n/a n/a

= Applicable

n/a = Non Applicable

 

 

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