Products Questions

Question 1

What is the difference between a closed and mortgage and an open mortgage?

Answer 1

Closed mortgage is when you know the payoff date open end you do not know when it is done being paid off
Open end example: HELOC,REVERSE MORTGAGE
closed end example:HEL,Balloon mortgages

Question 2

What is a fixed rate mortgage?

Answer 2

Fixed rate means the interest stays the same throughout the loan 

Question 3

Which mortgage product is considered a traditional mortgage 

Answer 3

30 year fixed 

Question 4

What does ARM stand for?

Answer 4

Adjustable rate mortgage

Question 5

What Is the amortization schedule length for most arms?

Answer 5

30 year full

Question 6

What are the three types of arms?

Answer 6

Traditional arms, hybrid, arms, option arms

Question 7

What is a traditional arm?

Answer 7

Loans in which the rate adjust on a periodic basis, an interest rate that adjust each year

Question 8

What is a hybrid arm?

Answer 8

Hybrid arms are the most common adjustable rate mortgages available in the market today hybrid combined features of a fixed rate mortgage and adjustment rate mortgage
3/1,5/1,7/1,10/1

Question 9

What is a option Arm?

Answer 9

The borrower has the option of three different payment amounts. One option allows a borrower to make fully and memorize payments like the other than any other arm loan. The second option is an interest only payment option can be called minimum or payment.