KEY TERMS
There are currently 5 terms in this directory beginning with the letter V.
V
Variable Rate Mortgage
A loan in which the interest rate fluctuates with the cost of funds or some other index.
Variances
The comparison made between fees and/or charges listed on the Loan Estimate (or Good Faith Estimate) and those listed on the final Closing Disclosure (or HUD-1). Not all fees are exposed to such scrutiny but for those that are the creditor/lender is held accountable for the excessive charges. There are two levels of tolerance based on the type of fee. Variance may also be referred to as Tolerance.