Tools & Resources

Mortgage

A legal document that gives you conditional ownership of your home, and uses the home itself for security (see collateral ) on the loan. The main condition of a mortgage is that you make regular payments of principal and interest until the mortgage debt is fully paid.

Mortgage Application

The process by which you submit personal financial information—including income, assets and debts—to a mortgage lender. The lender verifies and evaluates the information to determine loan approval.

Mortgage Broker

A person or company that takes mortgage applications, performs many loan processing functions (ordering credit reports, appraisals etc.), and offers a borrower loans found from a search of sources—for a fee or commission.

Mortgage Insurance (MI)

A policy that guarantees payment of a mortgage loan in case of default. Paid by the homeowner, mortgage insurance is not required on a conventional loan if your down payment is at least 20 percent.

Mortgage Insurance Premium (MIP)

An amount paid at closing or as a part of your monthly payment for mortgage insurance.