Home Lending

The Annual Percentage Rate (APR) - Listed above, is based upon loan to values of 80% or less. Loan to values greater than 80% will require private mortgage insurance and your APR will be higher. The APR is estimated based on loan size of $250,000 for conforming loans and $806,501 for jumbo loans. APR may be higher for cash-out refinance applications.  Interest rates and loan programs shown are subject to change without notice and assume excellent credit. A consumer credit report will be obtained in connection with an application. The name and address of the agency and/or agencies providing the credit report will be furnished upon request. A consumer credit report may also be requested in connection with any update, renewal or extension of the credit for which application is made. 

Adjustable Rate Mortgage (ARM) - A mortgage loan with an interest rate is likely to change based on how the market is doing. An index (a rate based on market conditions) and a margin (a rate set by the lender before you apply for a loan) are added up to determine your ARM interest rate. Although an ARM may start with lower monthly payments than fixed-rate mortgages, they come with the risk that your payment will rise because the index changes.

Equity - The difference based between what is owed against a property and its fair market value.

FICO Score - The best-known and most widely used credit score model in the United States. The FICO score is calculated with information from a consumer's credit files. It provides a snapshot of risk that banks and other institutions used to help make lending decisions.

Loan to Value (LTV) - The percentage of your new home’s value that your mortgage will cover. For example, a home valued at $200,000 with a $160,000 mortgage has an LTV of 80 percent. This is one of the key factors lenders consider after appraising the home. The higher the LTV amount, the riskier it is for the lender to loan out the money.