A consumer safeguard limiting adjustments to ARM interest rate or mortgage payment's.
In real estate, the interest or value of the real estate over and above the amount of the indebtedness thereon.
A mortgage on which the interest rate is set for the term of the loan.
|Private Mortgage Insurance (PMI)|
In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With down payments below 20%, borrowers are usually required to carry private mortgage insurance depending on your loan's structure. Private Mortgage Insurance, is paid on all non-government-insured loans and whose equity is less than 20%. When you have accumulated 20% in equity, your lender may waive PMI at your request. FHA and VA loans have different insurance and guidelines; see Mortgage Insurance Premium for FHA loans.