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Mortgage -
An instrument used in some states as a claim in real
estate pledging the subject property as collateral for a mortgage
loan and terminating once the loan is paid in full.
Refinance - The process of
obtaining a new mortgage loan to pay off the existing debt from loan
proceeds using the same property as collateral. This type of loan is
generally requested to obtain a lower interest rate and/or reduce
payment or term.
Equity Credit Line - A loan with
a maximum credit limit that allows the borrower(s) to disburse funds
up to the maximum credit line as needed. Funds may be disbursed
repeatedly as the principal balance is paid down up to the maximum
credit limit available. A line of credit functions similar to a
credit card and may be accessed by writing a check or a using a
debit card
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Debt Consolidation Loan -
A type of loan that
allows the borrower to payoff all or a portion of existing debt
(including the existing mortgage loan)
from
loan proceeds.
Home Equity Loan -
A type of loan that
allows homeowners to acquire a loan in addition to their original
mortgage/lien using a portion or all of the equity in their home
(primary residence). A home equity loan is a generally a second
mortgage on the subject property and may be used for any personal
needs (i.e., college education, debt consolidation, home
improvement, etc).
Home Improvement Loan -
A mortgage that enables
eligible borrowers to obtain financing to remodel, repair, and
upgrade their existing homes |
