Las Vegas Mortgages Look Like Alphabet Soup?
Sitting on the other side of the desk at a Las Vegas mortgage company can leave your head spinning. PMI, FICO, ARMs and other jargon are so easily thrown around it can make it hard to get your head around the whole notion of Las Vegas home loans.
When it comes to mortgages, Las Vegas is no different than any other part of the country. If you aren't careful the jargon and abbreviations can leave you in the dust.|
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Sure to the Las Vegas bank employee or your mortgage broker you're working with things are crystal clear. But in case it's not clear to you here's a few you might hear from time to time. FICO is your credit score. PMI or Private Mortgage Insurance is typically required for all Las Vegas home loans lacking a 20% down payment. Since the smaller the down payment the greater the risk of default. Most often you'll pay a monthly fee for this coverage that protects the lending institution. |
An ARM is an adjustable Las Vegas, NV mortgage. You’ll hear them referred to as 3/1 or 7/1. A 3/1 loan means the initial rate is fixed for three year. A 7/1 fixes the interest rate for seven years.
PITI stands for principal, interest, taxes and insurance. In other words you monthly house payment.
APR stands for Annual Percentage Rate or the annual interest paid on the loan. Can include mortgage interest, points and PMI paid.
LTV or loan to value ratio. You get this by dividing the amount of your mortgage by the sales price of the house. From a lenders perspective the lower this number the better. Lower also gives you a better chance of landing a Las Vegas mortgage.
Anyway, now when you peer into that bowl of alphabet soup Las Vegas mortgages are easier to read.
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