Current Mortgage Rates

Sunday, March 21, 2010



Glossary of Terms

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No Doc Loans (No Documentation Loans)

A no-documentation or "no-doc" mortgage is a loan offered by certain lenders to borrowers who generally have at least 25% equity in their home, or who can make a down payment of 5 - 30%. Loans requiring lower down payments (5 - 24%) are available to borrowers with excellent credit. Generally a good choice for the self-employed, no-doc mortgages are also suitable for those who do not wish to verify their income or who have credit issues (such as a brief, blemished, or missing credit history). Benefits of the no-doc mortgage include a shorter application process, as borrowers are not required to provide income, employment, or asset documentation and the lender has less paperwork to handle. Keep in mind that no-doc mortgages generally carry a slightly higher interest rate and may be available only from select lenders.