A type of insurance policy written by a private company protecting the mortgage lender against loss resulting from a mortgage default; typically used if the borrower's down payment is less than 20 percent of the home's purchase price.... : Private mortgage insurance (PMI)
Mortgage applications decrease as rates ease
NEW YORK (Reuters) - Applications for U.S. home mortgages decreased last week amid a sharp drop in purchasing and refinancing activity even as mortgage rates eased, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity decreased 10.5 percent to 699.2, more than offsetting the 9.4 percent gain during the previous week. The MBA's seasonally adjusted... : Mortgage applications decrease as rates ease
adjustable rate mortgage
An adjustable rate mortgage or variable rate mortgage is a loan secured on a property (house) whose interest rate and so monthly repayment vary over time. Other forms of mortgage loan include interest only mortgage, fixed rate mortgage, discounted rate mortgage and balloon payment mortgage. Adjustable rates transfer part of the interest rate risk from the lender ... : adjustable rate mortgage
When to Consider an Adjustable Rate Mortgage
An adjustable rate mortgage, or ARM, is different from a traditional fixed rate mortgage because the interest rate changes during the life of the loan in accordance with movements in the index rate. If you can take advantage of a low mortgage rate when applying for a mortgage, then a fixed rate mortgage might be the way to go. But there are many reasons to consider an adjustable rate mortgage. Adju... : When to Consider an Adjustable Rate Mortgage
Balloon loan
A mortgage in which the monthly payment is not large enough to repay the loan by the end of the term. The final payment is a large lump sum of the remaining balance... : Balloon loan
House Mortgage White Resources
Check out our great house mortgage white information.
This is just what it says. You only pay interest, the principal is never reduced.This is the grand daddy of all balloon mortgages and you taking a big risk that your house depreciates in value rather than the other way around.You could very well have to come up with extra cash at closing.The payments are much lower than on a normally amortized mortgage and if you have the discipline, it can be a useful financial planning tool.... : Interest Only Mortgages
CLOSED MORTGAGES / FIXED RATE MORTGAGES
The expression 'closed mortgage' originates from the 1980's when this type of mortgage was literally 'closed'. You contracted to the lender to make your payments for the term chosen, you could not pay anything additional, nor could you pay off the entire amount for any reason except the sale of your property. These days, there are many ... : CLOSED MORTGAGES / FIXED RATE MORTGAGES
Length of Second Mortgage
Some second mortgage loans may extend for as long as 15 or 20 years; others may require repayment in one year. You will need to discuss the repayment terms with the individual mortgage company and select one that offers terms that best suit your needs. For example, if you need to borrow $20,000 to make repairs on your home, you may not want a loan that requires you to repay the entire am... : Length of Second Mortgage
When to Consider an Adjustable Rate Mortgage
An adjustable rate mortgage, or ARM, is different from a traditional fixed rate mortgage because the interest rate changes during the life of the loan in accordance with movements in the index rate. If you can take advantage of a low mortgage rate when applying for a mortgage, then a fixed rate mortgage might be the way to go. But there are many reasons to consider an adjustable rate mortgage. Adju... : When to Consider an Adjustable Rate Mortgage
Finally! Some good inflation news
Finally! Some good inflation news Fed officials say that despite a rise in oil prices, things are well in check. April 20, 2005: 9:24 AM EDT NEW YORK (CNN/Money) - As another disturbingly high reading on inflation hits the markets, it will be interesting to see if the Federal Reserve maintains the upbeat view expressed by some its officials in the last 24 hours. Last nigh... : Finally! Some good inflation news
