• Bait Rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit.  Rates are based on:  credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location, and the day you lock your rate, etc.  The loan isn’t locked until the application is accepted. By then, it may be too late to find a better rate from another lender.
• Basis Point: A term used in the mortgage industry which simply means 1/100th of 1 percent.
• Closing Costs: The fees required to process and close your loan. They’re a cash obligation running from three to five percent of the purchase price.  Motivated sellers might pay a portion of these costs.
• FHA: Federal Housing Administration, the Federal Government Agency that oversees the US Housing market. FHA Loans are loans insured by the Dept. of Housing and Urban Development.
• FRM and ARM: A Fixed Rate Mortgage Loan (FRM) is a loan where your interest rate stays the same for the life of the loan.  ARMs are Adjustable Rate Mortgages with variable interest rates that fluctuate based on an agreed-upon index.
• GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan.
• TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan.
• Lis Pendens: An official notice that there is a pending lawsuit over real estate.
• Per Diem Interest: Interest you pay per day, from the day you close to the last day of the month.
• Underwriting and Underwriting Fees: Underwriting is a process the lender performs to qualify a borrower for a loan and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money.
• Warranty Deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property.

Frost Mortgage Banking Group, in an effort led by Greg Frost Jr., collected 300 books for Open Book Day on June 4 to help children in local schools get a jump start on summer reading. Frost is committed to promoting literacy and supporting the local community, and is proud to have been a sponsor of the Albuquerque Hispano Chamber of Commerce’s event.

Statistics show that children who have not developed literacy skills by the time they begin school are 3-4 times more likely to drop out of school later.  Over 1 million children drop out of school each year, costing the nation $240 billion in lost earnings, forgone tax revenues and expenditures for social services (statistics from www.readfaster.com). Frost is dedicated to providing local children with learning opportunities so they can beat these odds, regardless of situation.

“This is an incredible way to open doors for our community,” Frost Jr. said. “We’re proud to be able to give back.”

Open Book Day took place June 4 in the Lockheed Martin Board Room at the Hispano Chamber, 1309 4^th Street SW, and included storytellers, snacks, giveaways, summer reading information, and of course, books!