Denver Mortgages-FAQ

There are a lot of frequently asked questions about Denver Mortgages::

What causes an adjustable rate mortgage to adjust? The interest rate of an adjustable rate mortgage (ARM) is linked to a particular index of economic conditions. A commonly used index is the six-month London Interbank Offering Rate or LIBOR. This index is the average of interest rates charged by major international banks to borrow U.S. dollars in the London money market. LIBOR is the British equivalent to the U.S. Prime Rate.

What is negative amortization and how does it occur? Negative amortization occurs when scheduled

monthly mortgage payments are not sufficient to repay the fully scheduled amortized [Pullout:

] payment (principal and interest) due on the loan and the outstanding balance of the loan grows larger with each payment.

Do I have to document my income? Full documentation programs require that you substantiate your income with tax returns, pay stubs, and/or other such paperwork. If you choose not to document your income, you can take advantage of our stated income programs, which requires no income verification, but you must satisfy other loan requirements.

Denver Mortgages FAQ