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Common Loan Types

Mortgage Closings

A mortgage loan is a loan for which real estate serves as collateral for repayment in case of default.

Refinance Closings

Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms. A refinance closing can take place to reduce interest rate/interest costs (by refinancing at a lower rate), to extend the repayment time, to pay off other debt(s), to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce or alter risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to raise cash for investment, consumption, or the payment of a dividend.

Reverse Mortgage Closings

A reverse mortgage enables older homeowners (62+) to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you. You may visit http://reversemortgage.org for more information pertaining to reverse mortgage closings.

Home Equity Loan Closings

A home equity loan closing, (aka HELOC), is a credit line that is kept open and restored as you pay off what is owed. An equity line of credit also has a high credit limit similar to a credit card that you are allowed to draw upon as needed. Most lenders require interest only payments each month, allowing you the flexibility to pay down the principal of the loan when you can.

FHA Loan Closings

FHA loan closings are fixed- or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time homebuyers.

Loan Modifications

A loan modification is a permanent change in one or more of the terms of a mortgagor's loan, allowing the loan to be reinstated, and resulting in a payment the mortgagor can afford.



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