Adjustable Rate Mortgage (ARM) - Rate mortgages usually offer much lower start rates than fixed-rate mortgages. Principal and interest payments vary throughout the life of the loan. The initial period can be 1,3,5 or 7 years. Then the adjustments may occur every 1,3,5 or 7 years depending upon the program.

Fixed Rates - Choose from 10-years to 30 years. Principal and interest payments do not change during the life of the loan. Shorter term loans build equity more quickly. Longer-term loans have lower payments.

Balloons - These 30 year amortizing programs work like fixed-rate loans for the first 5 year or 7 year period and typically are offered at lower rates. Depending on the investor you select, these programs then offer conditional refinance opportunities or automatically convert to fixed rates for the remaining 25 or 23 years.

FHA - We offer both the fixed rate and adjustable versions. FHA offers flexible qualifying and low down payment requirements. Down payment may be a gift from family member(s).

VA - Flexible qualifying and 100%financing can enable qualified veterans to buy homes.

KHC - First time home buyer program, offering a reduced interest rate with a low to no down payment. This is a 30 year fixed rate.

RHS - (Rural Housing Service) These are fixed mortgage loans to low-income and moderate-income rural residents.

Appraisal - A professional opinion of the market value of a property.

Closing Costs - Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also, called "settlement cost."

Deed- The legal document conveying title to a property.

Earnest Money - A deposit to show that a prospective buyer is serious about buying the house.

Escrow - The holding of documents and money by neutral third party prior to closing; also, an account held by the lender into which a homeowner pays money for taxes and insurance.

Mortgage - A legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Note - A legal document obligating a borrower to repay a loan at stated interest rate during a specified period of time; the agreement is secured by a mortgage.

Origination Fee - A fee paid to a lender for processing a loan application; it is stated as a percentage of the mortgage amount.

PITI - Stands for principal, interest, taxes, and insurance - the components of a monthly mortgage payment.

Points - A one-time charge by the lender to increase the yield of the loan; a point is 1 percent of the amount of the mortgage.

Pre-qualification - The process of determining how much money a prospective home buyer will be eligible to borrow before making a formal loan application.

Pre-approval - The process of determining how much money a home buyer can borrow before they have purchased a home.