Glossary of terms every mortgage broker needs to know

Key quotes:

• "Annual Percentage Rate of Charge (APRC) The APRC shows how much your mortgage will cost you (as a percentage) per year, assuming you keep it for the entire term."
• "This rate will include all the fees and charges and is useful for comparing the market for different loans."
• "Annual Percentage Rate (APR) This rate can be used to compare what other lenders are offering and describes the cost of the loan amount over a year."
• "A fast way to compare the market is through reputable online brokers, who can scan the different options available based on different APRs and your needs."
• "A good broker will offer financial advice on what the different types of mortgages are in regard to different interest plans."
• "They often have financial expertise, industry contacts and can tailor a loan or mortgage based on your personal circumstances."

Key quotes:

• "If you plan to buy a place at auction, you need to know a few things."
• "The settlement date you agreed on in the CoS is the date by which you need to have paid the entire sale price you agreed on to the vendor."
• "This doesn’t change the property price, but is the government’s contribution towards the property purchase, which means the amount you’ll need to borrow from the lender will be less LenderThe financial institution that will lend/loan you the money to buy your property."
• "You can withdraw without charge from the offset account, so this is where you should put your savings Pre-approvalBefore you make a purchase, it is always a good idea to check with the lender you plan to go with that they are prepared to loan the amount to you."
• "Your loan term is usually 15–30 years, and during this time the bank will charge you interest on the principle amount you borrowed (e.g."

Transcript: Loan to value or LTV this is the amount you're borrowing in relation to the property value as a percent your debt to income ratio or DTI this is a comparison between your monthly expenses and your monthly income mortgage insurance or MI this is insurance that protects a lender on conventional loans when you put less than 20% down on a property it's also required on FHA mortgages regardless of downpayment underwriter and underwriters the person is going to review all of your income asset and credit information to make the final decision on whether or not the mortgage should be issued to you hazard insurance or homeowners insurance this is the insurance that protects the home in the case of a fire hurricane windstorm and in some cases water damage an escrow account this is the account in which a lender collects both property taxes in homeowners insurance from you on a monthly basis as part of your monthly mortgage payment this money will eventually be used to pay the property tax bill and the homeowners insurance premium once they come due interest rate this is the percent you're gonna pay on the money or borrowing every single... See more →

Key quotes:

• "Catch-up Contributions: Catch-up contributions help individuals who are age 50 and older save more for retirement by contributing more each year through their retirement investment plans, such as 401(k)s and IRAs."
• "Certificate of Deposit (CD): A certificate of deposit is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions."
• "Also called “fiduciary obligation.” Financial Advisor: A financial advisor is a professional who helps individuals manage their finances by providing advice on different financial areas such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement."
• "Retirement Income: The amount of money an individual earns after retiring based on retirement savings assets, Social Security allowances, pensions, stocks, mutual funds, savings accounts, CDs, home equity funds, annuities, insurance, rental income, and any other form of monetary investment used to pay for retirement."

Key quotes:

• "Most people aren’t experts when it comes to purchasing a home."
• "Instead, shopping for a new home is something they’re likely to do only a handful of times."
• "As a result, the whole process can be a bit confusing — even to the seasoned homeowner."
• "For first-time buyers, trying to understand all of the real estate and mortgage talk can seem almost impossible."
• "To help make things a little simpler, I’ve put together a helpful list of 15 important terms that you’re likely to encounter during your home buying experience: Well, there you have it, a list of terms you’re likely to encounter next time you’re in the market to buy a new home."
• "And if that time happens to be right now, I’d like to help you find the perfect South Florida home."

Key quotes:

• "This is calculated as net income minus preferred dividends, divided by the weighted average number of common shares outstanding."
• "Rule #1 investors only invest in businesses if all five of the Big Five numbers are equal to or greater than 10 percent per year for the last 10 years."
• "This is calculated as book value of shareholders’ equity divided by the number of common shares outstanding."
• "It is determined by dividing the current earnings per share by the current market price."
• "It is calculated by dividing the current Earnings per share (EPS) by the MOS Price."
• "A business’s “market cap” is calculated by multiplying its number of outstanding shares times the current market price."