- Lender payoff demand
- Prepaid interest
- Impound account
- Loan to value
- Upfront mortgage insurance
- Monthly mortgage insurance
- Lender paid mortgage insurance
This is the demand from your existing note holders or loan servicers. Each payoff demand specifies a lump-sum amount that borrowers obligate to their current lender. The lump-sum amount often includes current principle balance, accrue interest, conveyance, recording, and misc. fees. Therefore, a payoff amount is often higher than the outstanding principle balance seen on monthly mortgage statement. (back to top of page)
(Refinance) Closing of loans can settle on any day within a month. Amount of interest pays to this new loan pro-rated for that month is called prepaid interest. (back to top of page)
It’s also known as escrow account. This is an mortgage option when recurring expenses such as hazard insurance, property taxes, HOA are collected and paid together with mortgage payment. Since impound account needs to have enough reserves for upcoming disbursements, loans using this option often require higher overall closing amounts due to borrowers. (back to top of page)
LTV- this value is calculated by dividing the loan amount to the property value. Lenders may offer incentives to lower LTV loans. (back to top of page)
UFMIP – Those upfront mortgage insurances (or funding fees) apply to government products such as FHA loans or VAloans. (back to top of page)
MIP – Monthly mortgage insurances are required on government products such as FHA loans, VAloans, and conforming loans with higher than 80% LTV.. (back to top of page)
Lender paid mortgage insurance
MIP -Monthly mortgage insurances are required by lenders on conventional loans where LTV is above 80%. Lender paid monthly mortgage insurances (LPMI) offer borrowers option to go for slightly higher interest rate while lender takes care of the monthly mortgage insurance. (back to top of page)