Mortgage Brokers

PITI

PITI is an acronym for Principal, Interest, Taxes, and Insurance. It refers to a person’s total monthly housing expense and is used to calculate their debt to incom

Loan to Value Ratio

The Loan to Value ratio is one of the key risk factors lenders use to qualify borrowers for a mortgage loan.

Loan Points

Loan points are the upfront fees charged to a borrower. They are generally charged on percentage basis of the total loan amount with one point equaling one percent.

Loan Originators vs Loan Brokers

There is one key difference between loan originators and loan brokers (distributors). Originators lend their own money while brokers are the middlemen who put borrower and lender together.

Interest Only Loans

Interest-only loans are loans where the borrower pays only the interest on the principal balance for a set term –typically five to ten years- at the beginning of the loan term.