Automated Valuation Method (AVM): The AVM method relies on algorithms and databases to determine a property’s value. Balloon Loan A balloon loan means that the loan has a larger-than-usual, one- time payment, typically at the end of the loan term. Bi-weekly payment In a bi-weekly payment plan, the mortgage servicer is collecting half of your monthly payment every two weeks, resulting in 26 payments over the course of the year (totaling one extra monthly payment per year). By making additional payments and applying your payments to the principal, you may be able to pay off your loan prior to the original term. Before choosing a bi-weekly payment, be sure to review your loan terms to see if you will be subject to a prepayment penalty if you do so. Check if your loan servicer charges any fees for a bi-weekly payment plan. You may be able to accomplish the same goal without the fee by making an extra mortgage payment at your discretion. Bridge Loan A bridge loan is a short-term financing option that allows homeowners to use the equity of their existing property to fund the down payment on a new property without having to sell the departure residence (current home) first. Cash Out Refinance You can use a cash-out refinance for a home that you own. Payouts can include funds for renovating your home, paying off consumer debt or covering higher education costs. You take a larger loan than you currently have paying off the current principal balance and borrowing an additional amount of "cash" not to exceed a loan to value (LTV) determined by the lender.
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