Frequently Asked Questions

The note is the legal promise to repay the loan according to agreed terms.

The property securing the loan acts as collateral for the lender.

PITI stands for Principal, Interest, Taxes, and Insurance—the components of a typical mortgage payment.

Escrow is an account used to collect and pay property taxes and homeowners insurance on the borrower’s behalf.

A servicer manages payment collection, escrow accounts, and borrower communications.

Yes. Most mortgages are sold to investors, but loan terms remain unchanged.

An MBS is a pool of mortgages sold to investors, providing liquidity to lenders.

A loan that meets Fannie Mae and Freddie Mac guidelines, including loan limits.

Loans that do not meet agency guidelines, such as jumbo or non-QM loans.

A mortgage that exceeds conforming loan limits and usually requires stronger borrower qualifications.