Speaking of Real Estate - featured article

from originating loans (from providing mortgage loans on a retail basis), these two Government-Sponsored Enterprises purchase and/or securitize mortgage loans made by others. The difference between these two often comes down to size (Fannie is larger), business strategy and execution.

Fixed-rate Mortgage (FRM): A mortgage loan with an interest rate that does not change over the term of the loan. The rate is set at the time the loan is created and will not be subject to fluctuations in interest rates due to changing market and economic conditions. Usually comes with higher fees or interest rates than an ARM and is best when rates are expected to rise significantly in the future.

Home Equity: Home equity is the difference between the current value of the house and the amount of money owed on the mortgage. The down payment that you make when purchasing a home will provide you with some initial equity.

Home Equity Line of Credit: A loan that allows you to borrow money when you need it based on the appraised value of your home.

Home Equity Loan: A loan that is secured by a home and limited by the current market value of the home and any additional liens or mortgages that exist. Also known as a second mortgage. Homeowners can sometimes borrow up to 125% of their home’s appraised value.

Accessorial (Additional) Services: Packing, appliance servicing or unpacking that you request or are required. These charges are in addition to the transportation charges.

Adjustable-rate Mortgage (ARM): A mortgage loan with an interest rate subject to change over the term of the loan. The interest rate is tied to a specified market rate. The amount and frequency of times the rate can change are determined at the time the loan is created. Usually there is also an interest rate cap. The benefits are that it generally has lower fees and a lower interest rate than a fixed rate mortgage.

Amortization: The paying down of principal and interest over time. In a typical mortgage loan, the principal is scheduled to be paid off, or fully amortized, over the term of the loan.

AMSA Certified Mover: AMSA Certified Movers subscribe to the AMSA Code of Conduct and have pledged to conduct their business in the most efficient and professional manner possible.

AMSA Certified Van Line: Van Lines use agents throughout the country to provide the origin, destination and hauling services needed for your move. Like Certified Movers, AMSA Certified Van Lines subscribe to the AMSA Code of Conduct.

Balloon Payment: A lump sum principal payment due at the end of some mortgages or other long-term loans.

Binding/Non-Binding Estimate: A binding guarantees the total cost of the move based on the quantities and services shown on the estimate. A non-binding estimate is not binding on the carrier and the final charges will be based on the actual weight and tariff provisions in effect.

Cash-out Refi: Refinancing a mortgage where the new principal exceeds the outstanding principal of the original loan by at least 5%. The homeowner is taking equity out of the home.

Construction Loan: A temporary loan used to pay for the building of a house. These loans are paid off by a long-term mortgage loan on the completed home and are paid out in stages over the course of construction. Borrowers must apply for and be approved for the residential mortgage prior to applying for a construction loan.

Conventional Mortgage Loan: Any mortgage loan not guaranteed or insured by the government (typically through FHA or VA programs).

Fannie Mae and Freddie Mac: The two federally chartered and stockholder-owned mortgage finance companies. Forbidden