MORTGAGE GLOSSARY

MORTGAGE GLOSSARY

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NO-COST MORTGAGE
A mortgage on which all settlement costs except per diem interest, escrows, homeowners insurance and transfer taxes are paid by the lender and/or the home seller. Most lenders charge a higher interest rate than the current going rate if a borrower chooses this option.

NOTE
A document that evidences a debt and a promise to repay. A mortgage loan transaction always includes both a note evidencing the debt, and a mortgage evidencing the lien on the property, usually in two documents.