Financing
Financing questions test vocabulary plus arithmetic. The note is the promise to pay; the mortgage or deed of trust pledges the property as security. West Virginia lenders almost always use a deed of trust - three parties (trustor/borrower, beneficiary/lender, trustee) - enforced by a nonjudicial trustee's sale after statutory notice. A mortgage is a two-party instrument historically foreclosed judicially.
Loan terms
Principal, interest, taxes, insurance (PITI). LTV = loan ÷ value; a lower down payment produces a higher LTV and usually mortgage insurance. Points are prepaid interest: discount points buy down the note rate, while origination fees cover the lender's costs. The APR discloses the true cost of credit including fees.
Loan types
Conventional (not government-insured), FHA (insured, low down payment, mortgage insurance premium), VA (guaranty for eligible veterans), USDA. Fixed-rate fully amortizing versus adjustable (index plus margin, caps, teaser rate) versus balloon or interest-only. Conventional loans above 80% LTV typically carry PMI until the balance falls.
Underwriting and regulation
Lenders examine credit, capacity (housing ratio and total debt ratio), and collateral. RESPA and TRID require a Loan Estimate and a Closing Disclosure, and RESPA Section 8 prohibits kickbacks and unearned fees for settlement services. The secondary market sets the standards most loans must satisfy.
Traps
Confusing discount points with origination fees, assuming an ARM payment never changes, and treating the deed of trust as the debt itself.
Rule of thumb
20% down means 80% LTV means no PMI. A $320,000 loan on a $400,000 price is exactly 80%.