Mortgage 101
How do ACH bank transfers work?
ACH stands for Automated Clearing House, a U.S. financial network used for electronic payments and money transfers. Also known as “direct payments,” ACH payments are a way to transfer money from one bank account to another without using paper checks, ...
Are payments or debits completed on banking holidays ?
ACH transfers, check payments, and debits are not completed on bank holidays. If a payment or a debit is scheduled on a banking holiday, the processing date will be delayed until the next business day.
What is amortization and how does it work?
Amortization is the process of spreading out a loan into a series of fixed payments. The loan is paid off at the end of the payment schedule. The best way to understand amortization is by reviewing an amortization table. If you have a mortgage, the ...
What is the difference between interest rate and Annual Percentage Rate (APR)?
APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such as mortgage insurance, most closing costs, discount ...
What is a sale of service or loan transfer?
The process by which one lender transfers the loan servicing rights from a mortgage company to another loan company. When this happens any automated payments you have setup will typically stop working, which can cause you to miss payments. EarnUp can ...
What is additional principal?
This is a supplementary payment applied directly to your mortgage loan principal amount. It exceeds the scheduled monthly amount; thus, possibly saving you on interest and helping you to pay off your mortgage early.
What types of mortgages exists?
The two most common types of mortgages are fixed-rate mortgages and adjustable-rate mortgages. Here's a breakdown: Fixed-Rate Mortgages: Remember interest rate? With a fixed-rate home loan, that interest rate is fixed, meaning it stays the same until ...
What is home insurance? What is private mortgage insurance (PMI)?
Just like you have health insurance to cover you when you have medical expenses, lenders will require you to acquire home insurance. This insurance typically covers fire, theft, etc. There are also specialty types of insurance that can cover natural ...
What is a grace period?
"Grace period" refers to the additional period of time a lender provides for a borrower to pay a mortgage payment without penalty. Most lenders and servicers provide a 15-day grace period. If the payment is received out of the grace period, customers ...
What is a payment due date?
The payment due date is a specific date on which the minimum monthly payment is to be paid each month. Most of the mortgage loan payments are due on the 1st of each month, but most typically have a grace period.
What is escrow?
An escrow account is an account is an account that is set up to hold funds that can be used for a range of reasons during and after the home buying process, but is typically used to hold funds for taxes and insurance.
What is an interest rate?
The lender charges you for borrowing money from them. This is called interest. It is typically expressed as a percentage, which is known as the interest rate. The interest rate and annual percentage rate (APR) are not necessarily the same thing - ...
What is principal?
The amount of money that the bank lets you borrow is known as the principal. To lower your loan's initial principal amount, you can apply more of your funds to the purchase price of the home, referred to as a down payment.
What is a mortgage loan?
A mortgage is a loan that is used to finance your house. In order to secure the loan, you have to enter into an agreement with a lender, or bank. The lender will give you the loan as cash up front, which you will then pay back over a set time span ...
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Call EarnUp at 800-209-9700, weekdays from 6:30am-5:00pm PT, or email support@earnup.com, to connect with a member of the Customer Happiness Team.
How do ACH bank transfers work?
ACH stands for Automated Clearing House, a U.S. financial network used for electronic payments and money transfers. Also known as “direct payments,” ACH payments are a way to transfer money from one bank account to another without using paper checks, ...
Are payments or debits completed on banking holidays ?
ACH transfers, check payments, and debits are not completed on bank holidays. If a payment or a debit is scheduled on a banking holiday, the processing date will be delayed until the next business day.
What is amortization and how does it work?
Amortization is the process of spreading out a loan into a series of fixed payments. The loan is paid off at the end of the payment schedule. The best way to understand amortization is by reviewing an amortization table. If you have a mortgage, the ...
What is the difference between interest rate and Annual Percentage Rate (APR)?
APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such as mortgage insurance, most closing costs, discount ...