Our sister company, Cendant Mortgage, can help you identify your preferred mortgage and pre-qualify for the financing you need. Your first step in the mortgage process is to know in advance the amount of mortgage for which you qualify. Mortgage pre-qualification takes the stress out of the home buying process and positions you as a "cash buyer," which increases your negotiating power.

Here are some common mortgage terms you should know as you move through the mortgage process:

• Private Mortgage Insurance (PMI) — Insurance written by a private company that protects the mortgage lender from a mortgage default; if your downpayment is less than 20% of the cost of the house, you will have to pay for PMI.
• Locking the Rate — A guarantee that the rate quoted will be the actual mortgage rate if the applicant qualifies and closes within an allotted time period.
• Cap — The maximum allowable increase in either payment or interest rate during the life of an adjustable rate mortgage (ARM).
• Annual Percentage Rate — Reflects the cost of your mortgage loan as a yearly rate; it will be higher than the interest rate stated on the note, because it includes, in addition to the interest rate, loan discount points and fees and mortgage insurance.
• Application Fee — A fee to cover the initial mortgage processing expenses, such as appraisal and credit reports.
• 30-Year Fixed Rate Mortgage — A long-term loan in which Principal and Interest (P&I) are repaid to the lender over a 30-year period; your monthly payment remains the same for the life of the loan, offering a sense of stability.
• Adjustable Rate Mortgage (ARM) — The interest rate changes over time, according to terms specified in advance; it's one of the most popular mortgage programs.

If you are being moved by your employer, be sure to check your employer's relocation benefits package, as this may affect the price range you can afford or the financing involved.

Cendant Mortgage Guarantees

Through its exclusive service guarantee, Cendant Mortgage promises to provide you with a same-day answer to your mortgage application, or they will give you $250. They promise to meet your closing date, or they will reduce your interest rate by one-eighth of one percent.*

With Cendant Mortgage, all you have to do is call a toll-free number and a loan consultant will take your mortgage application over the phone. There is no paperwork for you to fill out. The whole process takes only 15 minutes. Call Monday - Friday, 8:30 a.m. to 10 p.m.; Saturday, 8:30 a.m. to 8 p.m.; Sunday, 12 noon to 8 p.m. EST.

Cendant Corporation is licensed as a mortgage banker in all 50 states and is an equal opportunity lender.

*Conventional, first mortgage loans only.