The Priority Group
Amy Serra Albright, The Priority GroupPhone: (248) 882-5515
Email: [email protected]

Must-know mortgage definitions

by Amy Serra Albright 01/16/2023

Mortgage definitions for all stages of homeownership  featured image

Whether you’re a new buyer searching for your first home, or a long term homeowner, understanding mortgage definitions can give you a better grasp on how to navigate property ownership in ways most beneficial to you. 

Balloon loan

If you’re in the market for your next home and know your financial standing will increase in the future, consider inquiring about a balloon mortgage loan. 

This loan type consists of lower monthly payments at the start of the loan process, with one large sum paid at the closing of the loan term. These loans are associated with short-term loans and with a fixed rate mortgage and interest is typically low. 

Discount points 

Discount points allow you to get a lower interest rate on your loan, lowering your monthly mortgage payment. One point is equivalent to 1 percent of the mortgage loan amount and the cost of discount points is due during the closing of the home in cash. 

Reverse mortgage 

If you’re over the age of 62, a reverse mortgage allows homeowners to borrow from the equity their home has built without monthly payments. This is great for securing a larger sum of financing, but it decreases home equity as it’s not paid down. 


Caps are regulations in place to protect consumers and limit the number of times mortgage loans can change on an adjustable mortgage. 

Settlement service provider list 

A settlement service provider list (SSPL) is a comprehensive list provided by mortgage lenders of service lenders to shop from to aid in the closing process. 

Property inspection waiver

This document provides legal leeway to bypass the home inspection process during a home sell. 

Making mortgage payments is a large commitment, so understanding the terms associated with the process can help prepare you before working with a mortgage lender. 

About the Author

Amy Serra Albright

As a top producing agent, I specialize in Oakland and S. Genesee County areas.  I work with all types of Buyers and Sellers, including first time, move up, relocation, second homes, luxury homes & investors.  I am a company top producer with Real Estate being my full time job.  Through out my over 20 years in the business, I have been actively involved in my local Board of Realtors serving as a committee chairman, a member of the Board of Directors and as past president of my local board of Realtors. I love my job and love all things real estate. My goal is to provide you with an experience above and beyond your expectations so you will want to refer me to your friends and family.  I constantly strive to build a strong working relationship with my clients.  My goal is to be “Your Realtor for Life”. Let me make you and your Real Estate needs my number 1 Priority!