Mortgage Terms Used by Dreyer Group Mortgages
We have put together some basic information on mortgage terminology, mortgage costs and some tips on how to make an informed decision on your mortgage needs. There are 20 entries in this glossary.
The period of time, prior to closing of your house purchase ("the completion date") that a lender will guarantee that the interest rate they have offered will not rise. This is usually for a period between 90 and 120 days - although longer rate holds are available under special conditions. The commitment letter will also state under what conditions (if any) that they will decrease the interest rate if and when rates in general drop prior to your completion date.
|Standard mortgage fees||
All mortgages have standard fees associated with them such as renewal fees, discharge fees, NSF fees, etc., These vary from lender to lender and should be considered.
When property taxes are included with your mortgage payments, your lender will hold back funds from your mortgage proceeds to cover interim or final property taxes payable to the municipality. The amount depends on the month the mortgage was funded and on the dates when interim and final taxes are due. Holdbacks are used to pay for the current year's taxes, while your monthly tax installments are accumulated in the account to pay for the next year's taxes.
This is the period of time that the interest rate and the loan is contracted for. Terms can vary from 3 months to 25 years.