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TRUSTDale Tip of the Day: *Mortgage Terminology

7/23 and 5/25 Mortgages

Mortgages with a one-time rate adjustment after seven years and five years respectively.

3/1 5/1 7/1 and 10/1 ARMs

Adjustable rate mortgages in which rate is fixed for three year five year seven year and 10-year periods respectively but may adjust annually after that.

Acceleration

The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower) or by using the right vested in the Due on Sale Clause.

*Source: https://www.mortgage101.com/article/mortgage-terminology