Adjustment Date

The date the interest rate changes on an adjustable-rate mortgage (ARM). On most ARMs, the rate starts out fixed at a discount for an initial period, such as five years. Then it's reset (typically upward) on the adjustment date to reflect current market rates. The rate continues to change on a regularly scheduled basis at each adjustment period.

loan broker

A person or entity that specializes in matching homebuyers with appropriate mortgage lenders. Loan brokers (also known as mortgage brokers) make most of their money by marking up the costs on the loan the wholesale lender is offering. Loan brokers provide an easy and effective way to find the cheapest mortgage rates, given the borrower's financial situation and goals. Many states require loan brokers to be licensed.

limited equity housing

(Also referred to as limited equity housing cooperatives, or LEHCs.) An arrangement designed to encourage low- and moderate-income families to buy their own place to live. The housing is offered for sale, usually by a nonprofit organization, at an extremely favorable price with a low down payment. Typically the housing has been built (or an apartment building has been converted) for multiple families, who then share common areas and some decision making. The catch is that, upon selling, the owner gets none of the profit if the market value of the unit has gone up. Any profit returns to the organization that built the home, which then resells the unit at an affordable price.


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