Phone: 415-269-4461
Email: michael.haigh@supremelending.com

FAQ

Finance Glossary

Below is a listing of common terms used when discussing mortgage loans.

Adjustable Rate Mortgage (ARM)
Mortgage in which the rate of interest is adjusted at regular intervals based on a standard rate index. Most ARM’s have a cap on how much the rate may increase.

Amortization
The process through which the mortgage debt is altered, usually declining, as payments are made to the lender. “Negative-amortization” occurs when monthly payments are too small to cover either the principal or interest reductions.

Annual Percentage Rate (APR)
The rate of interest to be paid on a loan projected life; sometimes referred to as the “true” rate of interest.

Appraisal
A professional evaluation of the value of a home or other piece of property. It is often required by the lender.

Balloon Mortgage
A real estate loan in which some portion of the debt will remain unpaid at the end of the term of the loan. A balloon will usually result in a single large payment due when the loan ends.

Cap
A limit on how much a mortgage interest rate may increase or decrease for an adjustable rate mortgage.

Conventional Mortgage
A home loan that follows a fixed rate.

Debt-To-Income Ratio
A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-income is the total amount of debt, including credit cards and other loans, divided by the total gross monthly income.

Default
Failure to pay the mortgage payments over a specified period of time.

Discount Points
A percentage of the mortgage paid to the lender to lower the interest rate on a loan. One point equals one percent of the mortgage.

Equity
The difference between the market value of a house and the amount still owed on the mortgage.

Escrow
Money and documents deposited in a trust account to be held by one party for another. Often used by brokers to hold deposit money prior to closing. Also used by lenders to hold money for taxes and insurance on a home.

FHA Loan
A loan guaranteed by the Federal Housing Administration. FHA issues specific guidelines for mortgages.

Loan-To-Value Ratio (LTV)
The amount of the loan divided by the purchase price of the house. If a refinance, the loan is divided by appraised value.

Margin
A set number of percentage points a lender adds to the index to determine the interest rate for an ARM.

Mortgage Insurance (MI)
Insurance designed to cover the lender should the borrower default on the loan. Depending on the lender, this may be required by the lender.

PITI
PITI stands for principal, interest, taxes and insurance – the components of the monthly housing expense. Principal – the portion of the monthly payment that is used to reduce the loan balance. Interest is the fee charged for borrowing money. Taxes refer to the property taxes paid by the homeowner. Insurance refers to homeowner’s insurance – insurance purchased by the borrower and required by the lender, to protect the property against loss from fire and other hazards. Taxes and Insurance that are included in the monthly mortgage payment are held in an Escrow account by the lender who then pays the full amount when they come due.

Points
An interest fee charged by the lender. One point is equal to one percent of the mortgage. The use of points allow the borrower to buy up or down his permanent interest rate.

Prepayment Penalty
A fee imposed on a borrower who pays off a mortgage before it is due.

Prequalification
A process by which a potential homebuyer qualifies for a home mortgage before making an offer on a house. A lending institution agrees to make a loan in a specified amount to the person it has pre-qualified.

Principal
The amount of the loan.

Second Mortgage
An additional mortgage on a property. It often carries a shorter term and a higher interest rate than the original mortgage.

Title Company
A company that searches for titles and insurance claims. Your loan will close at a title company.

Truth In Lending Act
A federal law that requires lenders to reveal all the terms of the mortgage.

VA Loan
A loan guaranteed by the Veterans Administration. To obtain a VA loan, the borrower must have served in the Armed Forces.

We provide loan decisions much faster than large banks.

You're in trusted hands with us.

Call 415-269-4461 or Contact Us Online Today

Contact Us

  • Michael is the best mortgage lender in Northern CA! He understands what’s going on and can give you your best chance at putting in place a loan that is not only priced competitively, but fits your needs.

    ALL of the loans were closed on time, without hassles, and I was kept up-to-date with the process. I have always been very happy with the service, the communication, and the pricing… but the best part is the speed. He can close things more quickly than any large bank and makes the entire process easy.

    Michael and his team are the best at what they do and I would not hesitate to send anyone to them for their own financing needs.


    David E. (Yelp)

  • Michael and his team are always professional and give the client the highest level of service. I am happy to consider him among a small handful of professionals I would refer.


    Annette M. (Yelp)

  • Michael’s knowledge base is none to compare. Whether it’s finding THE right solutions which today is not easy, or simply following up with a phone call or email, Michael delivers what he says he is going to deliver. Sounds simple yet Michael does so enthusiastically.

    Michael’s attitude is infectious which makes it easy for me to pass my valued clients to him because I know they are getting the best. Peace of mind for me and unparalled service for them. I am confident Michael and I will be working together for years to come….and it started the very first day we met.


    Brooke D. (Yelp)

  • Michael takes so much pride in his work that it shows from the moment of the first contact to the final closing of the home purchase. As first time home buyers, we looked at the usual commercial banks, a few mortgage brokers and luckily, landed with Michael.

    Michael is straightforward and clearly explains every aspect of the loan – there are no surprises! – and we knew he always held our best interest at heart.

    There is no bureaucratic red tape to wade through, no unreturned phone calls or emails. Michael is simply a genuine, caring person who is also exemplary in his field.


    Curtis S. (Yelp)

  • I have known Michael for some time now, through my affiliation with the San Mateo County Assoc. of Realtors, and I have been very impressed, not only with his professionalism and wide breadth of knowledge in his field, by by his geniune interest in helping other people. He is truly a good person, and if you combine that with a high degree of professionalism, you have someone you want to work with! I am lucky to have him as a client, coworker and friend!


    Corrin T. (Yelp)

  • The Michael Haigh Team is outstanding. They are quick and honest. All facts are laid out from the beginning.

    Time was very important to me and my family. Rather than bother us with nonsense they cut to the chase. But when I didn’t understand something, they are quick to explain. And explained in plain English.

    Their fees are also very reasonable and they can really give other lenders a run for their money. If time is important to you, you should definitely give them a call or email.


    I.N. (Yelp)

  • I have known Michael for 30 years, we grew up together as neighbors in San Francisco. He is genuinely kind and caring and super sharp – even back in the day he was incredibly quick mentally, especially when it came to numbers.

    So I was delighted when he recently did my sister’s loan for her first condo – a bit daunting with so many rules and regulations but he explained things in a way we could understand, and always put us at ease. As her realtor told us ‘Michael jumped through hoops for you.’

    I think what impressed me most was how protective he was of her not being put at risk in any way. That was more important to him then closing a deal. I recommend him without hesitation! Michael is just awesome.


    Fiona J. (Yelp)

  • Michael stepped in and saved a deal that was falling apart after the first lender dropped the ball. He did everything he said he would, when he said he would do it, which in this business is EVERYTHING. He was proactive, heading off problems before they became catastrophes. He worked well with my very emotional, rather difficult first-time homebuyer, and kept great communication going between all parties to the transaction, all the way to the end. I do not hesitate to give Michael my highest recommendation, and I would happily work with him again.


    Christie S. (LinkedIn)

  • Michael and his team simply do great work. He’s fast, and prompt, and has the expertise and knowledge of the industry that you’d want when looking for the best deal on a home mortgage. I’ll certainly go with Michael again when I buy my second home.


    Nathan G. (LinkedIn)

  • Michael offered a competitive loan with low fees and closed on our loan quickly. He took the time to explain all of our options and has a great team that makes sure the loan process goes smoothly.


    Michael P. (LinkedIn)

  • Utilized Michael for our refinance. He offered competitive rates, provided excellent communication throughout the process, and was very reliable. And because of his tight linkage with both the underwriters and the title agency, the process closed quickly and smoothly.

    We signed the final title documents in our home on a Saturday with the title company coming to us, which was service beyond what we expected for a refinance.

    Strongly recommended.


    Christopher G. (LinkedIn)

  • Michael has provided us with a couple loans for our home. More importantly, he has recommended against certain loans or refinances. Even though it was for personal home lending, I can see he is great at evaluating risk for his clients… with a personal touch. He’s a very personable guy with a great team.


    Jason M. (LinkedIn)

  • Good mortgage professionals are hard to find. Michael Haigh is one of those rare individuals who takes the stress out of the loan process and handles the various elements of loan approval, puts them together, amd makes sure everything is done when and how it’s supposed to be done. Michael is dedicated to his chosen profession, and more importantly he is totally dedicated to his clients.


    Mary M. (LinkedIn)

  • Michael’s professionalism and courtesy are highly valued by his clients. He always takes the extra step to ensure his customer’s satisfaction with their loans. His innovative ideas and aggressive strategy are an asset to have on your side when navigating through the complications of home purchasing and refinancing. I would recommend Michael to any of my friends and family.


    Kelin I. (LinkedIn)