I’m a newbie in this niche.
So what I did today is just a bloghoping and surfing. By the time I come to NewArkAdvocate site, my eyes was caught an attention of a page that’s very informative. The article in that page was written by Brett Richards and the article itself is just about the types of mortgage terms.

So here is the mortgage terms that I learned today:

ADJUSTABLE-RATE MORTGAGE (ARM).
A mortgage with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. The initial interest rate is lower than that for fixed-rate mortgages, but monthly payments can go up or down when the rate is adjusted.

ANNUAL PERCENTAGE RATE (APR).
A stated interest rate that reflects all of the financing costs of a mortgage. The APR includes points, origination fees and other finance charges in addition to the interest on the mortgage and includes them all in a yearly interest rate. The APR usually is higher than the interest rate alone and allows you to compare different types of mortgages based on the annual cost for each loan.

APPRAISAL.
An estimate of the value of the property, made by a qualified appraiser.

CAPS.
Consumer safeguards for adjustable-rate mortgages that limit the amount monthly payments can increase. An interest rate cap limits the amount the interest can change, while a payment cap limits the increase in monthly payment to a specific dollar amount.

CLOSING.
The meeting between the buyer, seller and lender in which the property and funds legally change hands.