Use the alphabet letters below to navigate to the words in this glossary.
The scheduled end date for a loan when it completes its term and becomes due and payable. For example, a 30-year loan reaches maturity in 30 years, and a 15-year loan reaches maturity in 15 years.
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Mortgage guarantee insurance is an insurance policy (often called MI or PMI) that insures lenders against nonpayment or default on your mortgage. If you do not put down at least 20% of the purchase price of your new home, we typically require you to purchase mortgage insurance. Mortgage insurance payments are included in your monthly payment.
It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount. For loans on single family principal residences, federal law requires automatic termination of mortgage insurance for many borrowers when their loan balance is scheduled to reach 78% of the original property value.
For some customers, a combination 1st and 2nd mortgage is an alternative to paying for mortgage insurance. With a combo loan, you get a 1st mortgage for 80% of the purchase price, a 2nd mortgage for 10% of the purchase price, and put down 10%. Our Mortgage Consultants can help you decide whether paying mortgage insurance or getting a combo loan makes more sense for you. Call 1-800-248-4638† .