A dual-apper is a street term used to describe borrowers who simultaneously apply for loans through two different loan brokers.
Sometimes because of the fear of uncertainty, home buyers might apply with various mortgage brokers, especially when they are buying a house for the first time.
This could be because:
Because we buy consumer products everyday and are constantly being targeted by big organizations in mass market advertising campaigns, we tend to carry some of that brand-conscious mentality into the world of mortgages and the lending industry in general.
Most people who are old enough to make an independent decision to buy a house should already know that all lenders basically sell the same product… which is money.
A dollar from a big lender is not valued more than a dollar from an unknown lender.
The fully index rate on a home loan is the interest rate consisting of the rate of the index plus the specified margin.
For example, if a loan currently has an interest of LIBOR + 1% and LIBOR is currently 1.10%, the fully indexed rate will be 2.10%.
Fully indexed rates are most common for adjustable rate mortgages or hybrid ARMs.
The term gift of equity is used to describe the difference between market value and purchase price of a transaction when the latter is lower than the former.
In the open real estate market, barring extraordinary circumstances, seldom do transactions take place below market value.
But these event occur frequently in transactions between family members. And the difference can be quite huge.