801.448.3800

Mortgages Made Simple

Glossary

1098 Interest Reported : Homeowners may subtract interest expense on a home loan from their income before computing income tax. Form 1098 is provided to the borrower by financial institutions and reports the amount of loan interest paid for the tax year in question.


30-Year Fixed (AUS Jumbo 30-year fixed, 30-day Lock) : A 30-year fixed mortgage has a term of 30 years with a fixed interest rate (as opposed to an adjustable interest rate). An "AUS Jumbo" mortgage is typically processed more quickly than a standard mortgage due to the Automated Underwriting System (AUS), and may allow you to qualify for a larger investment.


30-Year Fixed (Conventional Conforming 30-Year Fixed, 30-day Lock) : A 30-year fixed mortgage has a term of 30 years with a fixed interest rate (as opposed to an adjustable interest rate). A "conventional" mortgage is a mortgage that is not guaranteed or insured by the Federal government, and is not a part of a special mortgage programs offered by the government. A "conforming" mortgage has highly competitive interest rates and slightly stricter qualifying criteria.


30-year Rate : Desired interest rate for a 30-year mortgage.


3/1 ARM (LIBOR Alterna 3/1 ARM 30-day Lock) : A 3/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first three years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial three years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages.


5/1 ARM (LIBOR Alterna 5/1 ARM, 30-day Lock) : A 5/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first five years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial five years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages.


5/1 ARM (Libor Alterna Jumbo 5/1 ARM, 30-day lock) :
 A 5/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first five years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial five years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages. A Jumbo mortgage may allow you to qualify for a larger investment.


back to top


A
Accelerated Total Interest : 
Interest amount on a mortgage paid with accelerated payments.


Accelerated Weekly and Bi-weekly Payments : Accelerated weekly and accelerated Bi-weekly payment options are calculated by taking a monthly payment schedule and assuming there are only four weeks in a month. We calculate an accelerated Bi-weekly payment, for example, by taking your normal monthly payment and dividing it by two. Since you would pay 26 Bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.

The accelerated weekly payment is calculated by dividing your monthly payment by four. You would then make 52 weekly payments. Just like the accelerated Bi-weekly payments, you are in effect paying an additional monthly payment each year.


Account Holder : The owner of an asset, or the person whose name appears first on the asset statements.


Account Number : Account number for an asset or liability held by a borrower or co-borrower.


Adjustable Rate Mortgage (ARM): A loan that allows the interest rate to rise or fall based on a schedule set by you and the lender. You initially enjoy a lower fixed rate for a set amount of time, then the loan adjusts up or down, based on an ongoing economic index plus an established margin. ARMs have different frequencies for these adjustments. Some ARMs have a cap, so the rate cannot go above a specified amount year-to-year and over the life of the loan. The primary advantage of an ARM is that the initial rate is typically lower than it would be on a fixed-rate loan, allowing you to buy real estate that you may not be able to afford otherwise. On the downside, once the fixed-rate period of the ARM expires, your payments could potentially go up. There's also a possibility that they could go down.


Amortization : The process of repaying a loan in equal installments of principal and interest, instead of interest-only payments.


Amount Now Due : The payment currently due on an existing loan or mortgage.


Annual Income : Your annual income before taxes. For married couples, this is your total combined annual income before taxes.


Annual Percentage Rate (APR) : The charge for using an amount of money for a specified time expressed as an annual rate. The APR is calculated for the term of the loan and includes the interest rate, points, and certain other costs.


Appraisal : An estimate of the value of property, made by a qualified professional called an appraiser. This term also refers to the process to obtain the estimate.


Appraised Value : An opinion of a property's fair market value, based on an appraiser's knowledge, experience and analysis of the property.


ARM Adjustment Date : This is the date that the interest rate changes.

Asset Type : The type of asset owned by a borrower or co-borrower. Some examples of assets include checking accounts, stocks, bonds, retirement funds and mutual funds.


Asset Value : The current dollar value of an asset held by a borrower or co-borrower.


back to top


B
Balance :
 
Balance refers to the amount remaining to be paid on a liability, debt or loan.


Balloon Mortgage : A mortgage that has set payments of principal and interest that do not fully pay off the loan. The balance of the mortgage is due at the end of regular payments and is usually paid in a lump sum at a specified date.


Beginning Balance : The balance of your loan at the beginning of the prior year, before any payments were made during the course of the year.


Bonuses : Total monthly bonus amount earned by a borrower or co-borrower.


Building Status : The condition, or status, of the property to be financed.


Buy-down Funds : A sum of money paid to the lender at closing to temporarily reduce the borrower's interest rate.


back to top


C
Cash on Hand : 
Cash you have for the down payment and all closing costs.


Closing Date : The date on which all the financial details associated with a mortgage are finalized.


Commissions : Total monthly commission amount earned by a borrower or co-borrower.


Corporate Advance / Fees : Disbursement for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, to be recovered from the borrower. May include foreclosure expenses, attorney fees, bankruptcy fees, insurance and other expenses.


Credit Card Payments : Total monthly minimum payments for your credit cards.


Credit Report : A document completed by a credit-reporting agency that provides information about the buyer's credit cards, previous mortgage history, bank loans and public records dealing with financial matters.


Current Balance : The remaining amount owed on your mortgage.


back to top


D
Disposition Status : 
Defines how a property will be used by a borrower or co-borrower: as a residence, pending sale or retained for rental.


Dividends/Interest : Total monthly dividend and interest amount earned by a borrower or co-borrower.


back to top


E
Ending Balance :
 The balance of your loan at the end of the prior year, after all payments were made during the course of the year.


Escrow Account : This is an account held by the lender. The borrower pays monthly installments to this account for property taxes, mortgage insurance, hazard insurance and special assessments. When the annual payments are due for those items, the lender pays them using this money from the escrow account.


Escrow Balance : The balance in your escrow account.


back to top


F
Federal Housing Administration (FHA) :
 A federal agency within the U.S. Department of Housing and Urban Development (HUD). Using loan insurance programs to insure mortgages for lenders, the Federal Housing Administration (FHA) stimulates the availability of housing for low- and moderate-income families.


Fees/Late Charges : An additional one-time fee for not paying a loan payment by the payment due date.


FHA 203k Rehabilitation Loans : The section 203k program is HUD's primary program for the rehabilitation and repair of owner-occupied properties. It is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. The FHA 203k rehabilitation loan program assists borrowers who wish to purchase and fix up homes. By obtaining a 203k rehabilitation loan, you are obligated to make a minimum amount of improvements to the home. There are rules and restrictions that apply to such improvements and you should familiarize yourself with the entire process before you decide it's right for you.


FHA Adjustable Rate Mortgage (ARM) : FHA stands for the Federal Housing Administration, which is an agency of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money or construct housing, but it does insure residential mortgage loans made by private lenders. This allows borrowers with complicated credit histories or no credit histories become homeowners.Adjustable-rate mortgages (ARMs) have interest rates that go up or down with the economy, which could change your payment amounts from year to year. ARMs help lenders cover the cost of lending money in a changing economy by transferring a portion of the interest rate risk to you. In exchange for sharing the risk, you’re offered an initial interest rate that’s substantially lower than the interest on fixed-rate loans and stays consistent for the first 1, 3 or 5 years.Once your interest rate begins to adjust (after the initial 1, 3 or 5 years) it can’t go up more than 1% per year, or more than 5% over the life of the loan.


An FHA adjustable rate mortgage has several advantages:

  • 3% down payment
  • Co-borrowers are permitted
  • Eligible properties include 1-4 unit owner-occupied properties, manufactured houses, FHA approved condos, planned unit developments and townhouses
  • Cash-out available
  • No upper or lower limits on income


If you must work within a fixed budget, are trying to establish credit, or want to use gifts, loans or grants to make your down payment, and FHA loan may be right for you.


FHA Fixed Rate Mortgage : FHA stands for the Federal Housing Administration, which is an agency of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money or construct housing, but it does insure residential mortgage loans made by private lenders. This allows borrowers with complicated credit histories or no credit histories become homeowners.A fixed-rate loan has a fixed interest rate, a fixed monthly payment, and is fully amortizing'that is, you pay off the loan completely'over a given number of years (for example, 15 or 30 years). A portion of each monthly payment covers the interest on the loan. Another portion reduces the principal balance. Regular payments systematically whittle down the amount you owe until the loan is paid in full.An FHA fixed rate mortgage has several advantages:

Defined list of allowable closing costs, which can save you hundreds of dollars
Allows the down payment to be a gift from a family member, or from a non-profit or government agency
Lower down payment options
More favorable credit terms

If you must work within a fixed budget, are trying to establish credit, or want to use gifts, loans or grants to make your down payment, and FHA loan may be right for you.


First Mortgage (P/I) : A borrower's or co-borrower's monthly payment for a first mortgage.


First Payment Due Date : 
The date that your first loan payment was due.


Fixed/ARM Hybrid: For some buyers it is difficult to feel completely satisfied with either a fixed rate or adjustable rate mortgage. That's why Freedom offers a mortgage with the advantages of both: the fixed / ARM hybrid, also know as the fixed period ARM. With a fixed / ARM hybrid, you start out with a fixed interest rate for a specific amount of time, normally 3, 5 or 7 years. After the specified fixed-rate period, the loan converts to an ARM. One of the biggest advantages to a hybrid loan is the low interest rate during the fixed-rate period, which can be considerably lower than a 30-year fixed rate loan.A fixed / ARM hybrid is ideal for borrowers who are just starting out in a career that has growth potential, for borrowers who foresee their budget becoming more stable several years down the road and for borrowers who plan to move after a few years.


Fixed/ARM Hybrid, Interest First (Also referred to as "Interest Only") : A Fixed / ARM Hybrid, Interest First Mortgage is very similar to a fixed / ARM hybrid with one exception: you pay only the interest on the loan for a fixed term. That means you are not required to begin paying on the principal until the initial term is over. However, if suddenly your monthly income increases you may exercise the option to pay on the interest and the principal.The interest first option reduces your monthly payments during the initial term, and may increase your purchasing power. With an interest first loan, you may also be eligible for considerable tax deductions.Borrowers choose an interest first mortgage if their monthly income is less predictable, for instance those who are self employed. The interest first option is also ideal for borrowers who are just starting out in a career that has growth potential, for borrowers who foresee their budget becoming more stable several years down the road and for borrowers who plan to move or refinance in the short-term.


Fixed Rate Mortgage :
 The type of loan in which the interest rate will not change for the entire term of the loan.


back to top


H
Hazard Insurance :
 A broad form of casualty insurance coverage for real estate that includes protection against loss from fire, certain natural causes, vandalism, and malicious mischief. It's also known as homeowner's insurance.


Hazard Insurance Paid : The amount paid toward your hazard insurance, also known as homeowner's insurance.


Home Insurance Rate : Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.


Homeowner Association Dues : Monthly homeowner association dues paid by a borrower or co-borrower.


Home Together Public Safety Program : The HomeTogetherSM Public Safety Program is a no-cost homebuying program offered exclusively to members of public safety. It gives you access to education programs about the homebuying and closing process and special mortgage programs to help you make the right homebuying decision. You can also take advantage of substantial savings in loan costs through HomeTogetherSM.


back to top


I
Income Tax Rate : 
Your current federal income tax rate.


Institution Name : The name of an institution that manages an asset or liability held by a borrower or co-borrower.
Interest :

  1. A charge for borrowing money. It is usually expressed on an annual rate or as a percentage of the money still owed. For example, the interest rate might be 10%. If a person borrowed $10,000 and agrees to pay it in full at the end of one year, the interest will be $1,000.
  2. A right, share or title in property.
  3. A general term meaning partial or total right to a property. An interest in real estate might be a right, such as an easement, a lease or partial or full ownership.



Interest Rate : The charge for using an amount of money for a specified time; usually expressed as an annual rate.


back to top


J
Jumbo Loans :
 
A jumbo loan is defined as a loan amount larger than the current Fannie Mae loan limits. When a loan exceeds this amount, the loan is subject to special pricing, rates and fees. Freedom offers jumbo loans to qualified applicants.Jumbo loan options are varied, from fixed to adjustable rates, from 15 or 30-year loan terms and everything in between. The types of jumbo loans available are almost as varied as conventional loans.


back to top


L
Last Insurance Disbursement :
 The date that the hazard insurance payment was disbursed from your escrow account.


Last Insurance Disbursement Amount : The amount that was disbursed from your escrow account to pay for your home's hazard insurance.


Last Payment Amount : The amount of the last payment received on the Payment Received date.


Last Tax Disbursement : The date that the tax payment was disbursed from your escrow account.


Last Tax Disbursement Amount : The amount that was disbursed from your escrow account to pay for your property taxes.


Liability Holder : The name of the person responsible for a liability account. The owner may be a borrower, a co-borrower or it may be held jointly.


Liability Type : The type of liability owned by a borrower or co-borrower. Some examples of liabilities include other mortgages, auto loans, alimony and child support.


LIBOR Interest-Only Alterna Loan : LIBOR stands for London InterBank Offering Rates. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages. That means you'll save money from the start and, depending on the economy, could continue to save money throughout the life of the loan. LIBOR alterna loans are available in several versions:

  • A 3 / 1 adjustable rate mortgage, which offers a low fixed interest rate for the first three years then adjusts annually for the remainder of the loan. The rate will never go up more than 2% a year and no more than 6% over the life of the loan.
  • A 5 / 1 adjustable rate mortgage with a low fixed interest rate for the first five years, then annual adjustments for the remainder of the loan. The rate cannot go up more than 5% the first year and no more than 2% annually after that with a 5% lifetime interest rate cap.


There is a maximum amount you can borrow with a LIBOR alterna loan, but if you need more there are jumbo versions available as well.


Liquid Assets : Assets that can be used for a down payment and closing costs. These assets can be converted to cash or cash equivalent.


  • Checking and savings accounts
  • Money Market accounts
  • Exchange-traded stocks and bonds
  • Equity from a pending sale of real estate
  • Gifts (not to be paid back)



Loan Amount : The original amount borrowed and agreed upon on the closing date.


Loan Balance : The remainder of your mortgage that will be refinanced.


Loan Origination Rate : This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. For most lenders, this fee is typically 1% of the loan balance.


Loan Term : The number of years (or months) until a loan's maturity, or end.


Loan Type : Freedom Mortgage Corporation offers a variety of home loan programs. Some examples include fixed-rate mortgages, adjustable-rate mortgages (ARM), My Community Mortgages, Balloon Mortgages and more.


Low and No Down Payment Loan : For some borrowers, a monthly mortgage payment is manageable but coming up with the cash for all the up-front costs is difficult. For these types of borrowers there are low and no down payment mortgage options.If you have a very good credit history but lack substantial financial savings, a low or no down payment mortgage may be right for you. This option may also be right for you if you have a limited income.Typically, with a low or no down payment mortgage you are required to borrow a larger principal amount, have private mortgage insurance and may require a higher interest rate.


back to top


M
Marginal Tax Rate :
 
This is the tax rate you pay when you combine your federal, state, and local income taxes and federal payroll and self-employment taxes. It's used to calculate your potential income tax savings by deducting your mortgage interest.


Market Value : An estimate of the highest price a property would sell for within a reasonable period of time, on the open market under normal conditions, and between a willing, ready, and able buyer and seller.


Maturity Date : The projected date upon which a loan will be mature (or paid in full) according to the loan's term.


Monthly car payment(s) : Total monthly payment for your car loan(s).


Monthly Payment : Monthly principal and interest payment (PI). The monthly payment is what you can expect to pay each month toward your loan.


Monthly Total Interest : Amount of your monthly mortgage payment that goes toward interest.


Months Remaining : The number of months remaining to pay off the balance of a liability account.


Mortgage Amount : Original or expected balance for your mortgage.


Mortgage Insurance : On a conventional loan, if you make less than a 20% down payment, you may be required to get private mortgage insurance (PMI), which is added each month to your principal and interest payment. Or, if you obtain an FHA loan, you will be required to pay a one-time upfront mortgage insurance premium (MIP) and, if your down payment is less than 15%, you'll make a monthly mortgage insurance payment as well. If you buy a condominium, the upfront MIP does not apply; however, you will still pay monthly mortgage insurance.


Mortgage Payment : The principal and interest payment on a mortgage loan.


My Community Mortgage (MCM) : The My Community Mortgage was designed to help borrowers who live in specific areas, make less than the average area income (HUD median income), and / or work in specific public service fields. If you are a teacher, a police officer, a health care professional, or work in another public service field, you may be eligible for this special mortgage program.


back to top


N
Net Rental Income :
 Monthly net rental income earned by a borrower or co-borrower less rental expenses.


Next Payment Due Date : The date on which your next loan payment is due.


back to top


O
Optional Products :
 
Additional components included in your loan payment that are optional (not principal, interest, taxes or insurance which are required components of a monthly mortgage payment) such as supplemental mortgage life insurance or disability insurance.


Original Interest Rate : During the refinancing process, you may receive an interest rate on your new loan that is different from your original interest rate. Your original interest rate is the interest rate on your original, or current, mortgage loan.


Original Loan Amount : Original amount of your mortgage.


Origination Fee : The fee your lender may charge your to cover the cost of issuing a loan. The fee is usually computed as a percentage (for example, 1%) of the mortgage loan.


Other : "Other" refers to any miscellaneous portions of your mortgage payment not already mentioned, such as additional insurance.


Other Closing Costs : Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.


Other Expenses : "Other" refers to any miscellaneous monthly housing expenses not already mentioned.


Other Financing (P/I) : Other monthly financing expenses paid by a borrower or co-borrower.


Other Income : Alimony, child support, or separate maintenance income need not be revealed if the Borrower or Co-borrower does not choose to have it considered in repaying this loan.


Other Loan Payments : Any other installment loan payments, such as student loans or unsecured loans.


Overtime : Monthly overtime amount earned by a borrower or co-borrower.


back to top


P
Payment Received :
 The amount of the last payment received on the Payment Received Date.


Payment Received Date : The date on which your last payment was received.


Payment Type : The type of payment used for a monthly mortgage payment.


Points : A fee charged by the lender. Each point equals 1% of the loan amount; for example, two points on a $100,000 mortgage is $2,000.


Points Paid : This is the number of points paid to the lender.


Position/Type of Business : The job or position title of a borrower or co-borrower.


Prepayment Amount : Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.


Prepayment Type : The frequency of prepayment. The options are: none, monthly, yearly or one-time payment.


Principal : The portion of a loan payment that is used to reduce the loan balance.


Property Owner : The responsible person for a property. The owner may be a borrower, co-borrower or it may be held jointly.


Property Tax Rate : Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.


Property Type : The type of property owned by a borrower or co-borrower. Some examples of property types include single family, townhouse, mobile home and farm.


Purchase Price : The price of the home you wish to purchase. This is the actual price you'll pay, not including any closing costs.


back to top


R
Real Estate Taxes Paid :
 
The amount paid toward your real estate taxes.


Refinancing : Freedom offers several loan programs to help make refinancing your home easier. There are many reasons you may have for wanting to refinance:


  • Lower your monthly mortgage payment
  • Get cash out of the equity in your home
  • Switch from an adjustable to a fixed rate loan
  • Consolidate your debts
  • Consolidate your first and second mortgages
  • Increase your cash flow
  • Save thousands of dollars in interest
  • Save even more through tax deductible interest



Take advantage of these refinancing opportunities:

  • FHA, VA and conventional loans
  • Manufactured home loans
  • Fixed and adjustable rates
  • Free pre-qualification
  • Option of applying over the phone, through the mail or online
  • Professional, local service"



Rent : Monthly rent paid by a borrower or co-borrower.


Rental Income : The monthly rental income received from a property owned by a borrower or co-borrower.


back to top


S
Salary :
 
Monthly salary earned by a borrower or co-borrower.


Savings : Total amount of interest you'll save by paying your mortgage off early.


Second Mortgage or Home Equity Loan : Your home's equity is defined as the difference between your home's current market value and the total amount you owe on your home loan. It's a simple formula:Your home's market value - the amount you owe = your home's equityBy taking out a home equity loan, also known as a second mortgage, you are borrowing money against the equity you have built in your home. Lenders are willing to make such a loan because your home equity represents a valuable asset equal to the amount you are borrowing.Some of the reasons homeowners may want to take out a home equity loan include:


  • Increased cash flow
  • Consolidate debts
  • Find cash to remodel, finance a car or invest
  • Take advantage of potentially tax-deductible interest"



Self Employed :
 If you own 25% or more of the company you work for, you're considered self employed for loan purposes. Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements.
"Start With" Payment : This is the payment number that your prepayments will begin with. For a one-time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation.


Stated Income and Stated Asset Program : The Stated Income / Stated Asset program is designed for borrowers who do not have traditional documentation to verify their assets and monthly income. Just because you are self-employed doesn't mean you can't qualify for an affordable loan.If you have a good credit history but don't have all the traditional income documentation, the Stated Income / Stated Asset program may be right for you.


back to top


T
Taxes and Insurance : 
The total amount of property taxes and insurance paid on a property owned by a borrower or co-borrower.


Tax Lien : A lien on a property by local, state, or federal government for the amount of due and unpaid taxes.
Term in Years : The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.


Total Amount of Mortgages / Liens Outstanding : The total dollar amount remaining on a property mortgage.


Total Deposits : Money given by a buyer when making a formal offer to bind the sale. Also called "earnest money." It is also the term used for money placed into your account.


Total Interest : Total of all interest paid over the full term of the mortgage. This total interest amount assumes there are no prepayments of principal.


Total Monthly Payment : Monthly principal and interest payment, plus escrow payments for property taxes, mortgage insurance, hazard insurance and special assessments.


Total Payments : Total of all monthly payments over the full term of the mortgage. This total payment amount assumes there are no prepayments of principal.


back to top


U
Underwriting :
 The process of approving or denying your loan based on an evaluation of the property and your creditworthiness and ability to repay the loan.


back to top


V
VA Adjustable Rate Loans :
 VA stands for Veteran Administration. Freedom offers VA loans to veterans and their spouses to help make homeownership possible for those who have served our country. In order to qualify, you must meet one of the following criteria:

  • Military veteran
  • Active duty personnel
  • Non-married spouse of a deceased veteran
  • Member of selected Reserves or National Guard



Adjustable-rate mortgages (ARMs) have interest rates that go up or down with the economy, which could change your payment amounts from year to year. ARMs help lenders cover the cost of lending money in a changing economy by transferring a portion of the interest rate risk to you. In exchange for sharing the risk, you're offered an initial interest rate that's substantially lower than the interest on fixed-rate loans and stays consistent for the first 1, 3 or 5 years. 
Most VA loans require no down payment. You may pay closing costs with your own money, gift money or the seller may pay 100% of the costs. 

There are restrictions on the types of properties that are eligible for VA loan purchase, so check with your Freedom loan professional if you have any questions.
VA Fixed Rate Loans: VA stands for Veteran Administration. Freedom offers VA loans to veterans and their spouses to help make homeownership possible for those who have served our country. In order to qualify, you must meet one of the following criteria:

Military veteran
Active duty personnel
Non-married spouse of a deceased veteran
Member of selected Reserves or National Guard


A fixed-rate loan has a fixed interest rate, a fixed monthly payment, and is fully amortizing'that is, you pay off the loan completely'over a given number of years (for example, 15 or 30 years). A portion of each monthly payment covers the interest on the loan. Another portion reduces the principal balance. Regular payments systematically whittle down the amount you owe until the loan is paid in full. Fixed rate mortgages are the most popular mortgages for homeowners, typically 15 or 30-year fixed rate mortgages.
Most VA loans require no down payment. You may pay closing costs with your own money, gift money or the seller may pay 100% of the costs. 

There are restrictions on the types of properties that are eligible for VA loan purchase, so check with your Freedom loan professional if you have any questions.


back to top


Y
Years of Schooling : 
The number of years of school the borrower has attended. In general, enter 12 years if you have a high school diploma and add any additional years for associates, bachelors, masters or doctorate degrees. For example, if you have a bachelors degree, enter the number 16.


back to top