Toni Rogers
The F&M Bank & Trust Company
12150 E 96th St N, Owasso, OK 74055

Telephone: 918.748.7130
Fax: 918.274.9159

Frequently Asked Questions

Glossary of Terms


Annual Percentage Rate (APR)
The rate of interest on a yearly basis which includes charges on the mortgage loan and the interest payment.

Adjustable Rate Mortgage (ARM)
A home loan program in which the interest rate and the monthly payment are adjusted at regular intervals according to the changes in a specified index.

Credit Score
A numerical quantity reflecting a borrower's credit worthiness. Used by lenders to find out the risk in approving a home loan.

The final step in the loan process when the seller transfers title to the buyer, the buyer signs the loan documents and receives the loan amount from the lender.

Closing Costs
Fees paid by the borrower at closing. These include charges for originating and processing the loan.

Down Payment
The amount of cash which the home buyer pays towards the purchase price at closing.

Debt-to-income ratio (DTI)
The ratio of the monthly debt to the pre-tax gross monthly income.

Escrow Account
Bank account into which lender deposits part of the monthly payments made by borrower. The deposits include payments towards property taxes, homeowners insurance and mortgage insurance.

Fixed Rate Mortgage
A home loan program on which the interest rate does not vary throughout the life of the loan.

Housing Ratio
The ratio of the monthly housing costs to the pre-tax gross monthly income.

Mortgagee and Mortgagor
The former is the lender offering the loan and the latter is the borrower.

A legal process by which you can take out a loan against your own property - residential or commercial. The same property is held as the security for the repayment of the debt.

Mortgage Note
It is your written promise to pay off the loan amount on certain terms and conditions. The note also mentions what the lender is likely to do if you default.

Private Mortgage Insurance
Insurance policy offered by an insurance company in order to protect the lender from losses if the borrower defaults on his payments.

Rate lock/Lock-in
A written commitment which guarantees a fixed rate on your loan for a certain time period before closing. Usually, rates are locked for 30, 45 or 90 days till the closing date.