Glossary of Terms

Following are mortgage and real estate related terms and definitions you may find helpful.

If you have questions and would like to speak with a VA mortgage specialist, please call us toll free at 1-866-704-2826.

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Warranties: Written guarantees of the quality of a product and the promise to repair or replace defective parts free of charge.

Welcome package: Within three business days of contacting Benchmark Mortgage and beginning your application process, we will send a package that includes a Good Faith Estimate of Settlement Charges, a Truth In Lending Statement and a loan application.

Wire transfer fee: If we have to wire funds to process your mortgage, we pass this cost on to you, which generally runs $10 to $50.

Wraparound Mortgage: A loan arrangement whereby the existing loan is retained and a new loan is added to the property.

Example: The seller sells his/her property for $200,000. The buyer puts $80,000 down. The seller has an existing loan balance of $100,000 for a remaining period of 25 years at an interest rate of 6%. The seller then makes a wraparound mortgage to the buyer, (where the seller acts as a lender) for $120,000 at 8%. The seller has to continue making payments on his old loan. They buyer has to pay the seller on the new loan. The buyer may at a later date refinance the property and close both loans.