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Understanding mortgages is very important for anyone who is going for a home mortgage (in Maryland or elsewhere). At least a very basic understanding of mortgage related terms is necessary. Such an understanding will help in making your discussions with mortgage brokers and mortgage lenders more meaningful. Here are five most basic terms related to mortgages:

Mortgage rates: Mortgage rates or the mortgage interest rates are the interest rates that are charged by the mortgage lender on the home loan they grant to you. This is how mortgage lenders earn on the home mortgage loan that they grant to the home buyer. There are 2 types of mortgage rates: Fixed mortgage rates and adjustable mortgage rates. Fixed mortgage rates are the mortgage interest rates that remain unchanged over the entire term of the home mortgage loan. Adjustable mortgage rates are those mortgage interest rates that keep changing throughout the term of home mortgage. Adjustable mortgage rates change after a fixed period of time and based on a financial index (like treasury security). You can check various mortgage offers for your Maryland mortgage through www.uslso.com.

Down Payment: Down payment is the amount that you pay upfront i.e. the amount that the mortgage lender doesn't lend you. So down payment amount is calculated by subtracting the mortgage amount from the total purchase price of the property. Closing: The process of settlement i.e. exchange of money and property documents that happens between the two concerned parties. Mortgage broker: The person/company who acts as a middleman to connect the home buyer to the mortgage lender. Mortgage lender: The person/company that actually dispenses the home mortgage loan.