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Mortgage Terminology

What are terms and closing costs?

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Jeff Thomas
Mortgage Advisor, Family Lender
www.lendingsolutions.net  
703-830-9808

Jeff Thomas is a Mortgage Advisor and Financial Educator with Family Lender, Inc. located in Fairfax, Virginia. Jeff has seen the mortgage business change significantly in the 15 years he has been in the business. Changes such zero down loans, to relaxed underwriting guidelines to borrowing more than the house is actually worth on a purchase or refinance transaction. 

With the changes in the mortgage industry, Jeff has had to make changes in the way he performs his job. Jeff originally thought he was a loan originator, but after realizing the positive impact he could have on other peoples lives he made some basic adjustments to his business and now sees his position and career as a financial educator.

By taking the time upfront to get to know the people he serves, Jeff has been able to positively impact and improve the lives of the people he works with by providing relevant and timely advice. . This assistance comes in many forms, from insurance to painting to helping interview the right retirement professional. This core group of professionals allows Jeff to concentrate on providing the right advice for each person he works with.

Jeff is one of 200 people in the country that is both a Certified Mortgage Planning Specialist – CMPS and a Certified Liability Advisor – CLA. Jeff recently co-authored a book with Todd Ballinger, called “Borrow Smart Retire Rich”.  The principles addressed in the book will be covered throughout the video. 

Jeff hopes you gain insight on how to purchase and finance a home and hopefully you will find your time well spent and walk away with some information you did not know before.  Jeff Thomas, Where Advice Does Make A Difference!

 

What are terms and closing costs?

In this video, mortgage advisor, Jeff Thomas describes how to purchase your first home and the process you must go through to obtain a mortgage. This video is designed for first time homebuyers and also provides valuable information to indivduals who have purchased a home in the past. This video includes an overview of the four parts of a loan file, mortgage jargon, the loan process, house hunting, the types of mortgages available and the 7 steps on how to manage your mortgage correctly.

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Jeff Thomas: Hi, my name is Jeff Thomas; I am a Mortgage Advisor with Family Lender Inc. in Fairfax, Virginia. Today, we are going to go over the different parts of a Mortgage loan file and how to purchase a home. To tell you little bit about myself, I have been in Mortgage Business for 15 years, I recently co-authored a book with Todd Ballenger called Borrow Smart Retire Rich. The seven parts of that, we will discuss at the end of the video. Today we are going to discuss the different parts of mortgage terms and the ones that I feel that are most important to you?

Host: What are terms in closing-cost?

Jeff Thomas: Terms in closing cost are what I really think confuses most home buyers these days. There are so many terms and acronyms that the mortgage industry throws out, point, discount point, origination fee, appraisal, title, Escrow. We found that we can really break those down into a couple of different things, you have your origination fee, that s typically how your mortgage loan of, that s going to get paid. Within that you are going to have an appraisal and then the Escrow is really what I consider, it s a savings account that the lender sets up for you at the time of closing and every month when you make your payment, a portion of your principle money goes pay to the lender back, you have taxes and insurance and those go into that account. So, on the anniversary date of your mortgage, they are going to pay you insurance. If your taxes are paid twice a year, they are going to get paid through your Escrow account. So, you are not on a monthly basis having to save to pay your insurance next year and your property taxes. That s what s the functions of the your Escrow account is.

The other terms that really confuse some client these days is, what happens to closing, if your settlement fee, Recordation cost, title charges. The title charges are basically from a third party and that your Title company and those are the fees that they charge to be the eyes and ears for the lender, to make sure everything gets recorded at the Courthouse correctly. Recordation fees are charged by your City, State or County to transfer the note and the deed and of the seller s interest in the property to you.

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