Current Arkansas Mortgage Rates
Quick Mortgage Definitions / Terms / Facts
What is prepaid interest?This is the interim interest that accrues on the mortgage loan from the date of the loan closing to the beginning of the period covered by the first monthly payment. For example, if your closing date is scheduled for April 15, the first mortgage payment is due June 1. The lender will calculate a per-day interest amount that is collected at the time of closing. This amount covers the interest accrued from April 15 to May 1 and then your June 1 payment covers interest from May 1 to June 1.
What is title insurance?
Title insurance provides the lender and the buyer if you purchase owner’s coverage with coverage for losses resulting from specific title defects listed in the policy. In cases where land and property have changed hands over time, there is always the possibility an error has occurred. If an error has occurred, someone else may have an interest in the property, improvements may encroach on property lines or other similar problems may exist. In these scenarios, if you do not have title insurance you could lose your investment in your home. Lenders require "lenders coverage" to protect their investment and it only protects the lender. Owner’s coverage is optional and provides separate coverage for the borrower.
First Steps to Getting a Mortgage?
Get a Free Credit Report!The first step to getting a mortgage is to know your credit score. Understanding your credit report is a critical part to getting your mortgage. Raise your score while you shop for your home to get the lowest rate at closing, with a few easy steps you can easily raise your score in within a few months.
