Annual membership or participation fee

An amount that is charged annually for having the line of credit available. It is charged regardless of whether or not you use the line.

Annual percentage rate (APR)

The cost of credit on a yearly basis expressed as a percentage.

Application fee

Fees that are paid upon application. An application fee may include charges for property appraisal and a credit report.

Balloon payment

A lump-sum payment that you may be required to make under a plan when the plan ends.

Cap

A limit on how much the variable interest rate can increase during the life of the plan.

Closing costs

Fees paid at closing, including attorneys’ fees, fees for preparing and filing a mortgage, for taxes, title search and insurance.

Credit limit

The maximum amount that you can borrow under the home equity plan.

Equity

The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance.

Index

The base for rate changes that the lender uses to decide how much the annual percentage rate will change over time.

Interest rate

The periodic charge, expressed as a percentage, for use of credit.

Margin

The number of percentage points the lender adds to the index rate to determine the annual percentage rate to be charged.

Minimum payment

The minimum amount that you must pay (usually monthly) on your account. In some plans, the minimum payment may be "interest only". In other plans, the minimum payment may include principal and interest.

Points

A point is equal to one percent of the amount of your credit line. Points usually are collected at closing, and are in addition to monthly interest.

Security interest

An interest that a lender takes in the borrower’s property to assure repayment of a debt.

Transaction fee

A fee charged each time you draw on your credit line.

Variable rate

An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly

Copyright © 1997-2007, Prime Lend America Mortgage Corporation. - All rights reserved.
Please Read our Privacy Statement
Equal Opportunity Lender and Employer
Loan programs, rates and fees subject to change without prior notice.
A federal approved Lending Institution

Design and Hosting by DMNI