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 payments at your discretion. Closing Disclosure A Closing Disclosure is a required five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. Conventional loans A mortgage that is not insured or guaranteed by a Federal government agency, i.e., the Federal Housing Administration, U.S. Department of Housing and Urban Development, the U.S. Department of Veterans Affairs, the U.S. Department of Agriculture, and the Bureau of Indian Affairs. Conventional loans include both loans that conform to government sponsored enterprise (Fannie, Freddie) guidelines and those that do not conform such as Non-Qualified (Non- QM) products. Conventional mortgages delivered to the Fannie/ Freddie below a certain loan amount threshold are also known as conforming mortgages. Co-signer or co-borrower A co-signer or co-borrower is someone who agrees to take full responsibility to pay back a mortgage loan with you. This person is obligated to pay any missed payments and even the full amount of the loan if you don’t pay. Some mortgage programs
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