Restricted to individuals qualified by military service or other entitlements. Va mortgage funding fee a premium of up to 1-7/8 percent (depending on the size of the down payment) paid on a va-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed. Variable rate mortgage (vrm) see adjustable rate mortgage. Verification of deposit (vod) a document signed by the borrower's financial institution verifying the status and balance of his/her financial accounts. Verification of employment (voe) a document signed by the borrower's employer verifying his/her position and salary. Warehouse fee many mortgage firms must borrow funds on a short term basis in order to originate loans which are to be sold later in the secondary mortgage market (or to investors). When the prime rate of interest is higher on short term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee. Wraparound mortgage results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top. Why do mortgage rates change? To understand why mortgage rates change we must first ask the more general question: why do interest rates change?

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