Assuming that you’re referring to a fixed interest rate on a loan, this can affect your budget in a few ways. First, if your interest rate is higher than the current market rate, you’ll end up paying more in interest over the life of the loan. This can impact your budget in the short-term, as … Read more
A ground-rent arrangement is a type of mortgage in which the borrower agrees to pay the lender a fixed amount of money each year, in addition to any other payments that may be required under the terms of the loan. This type of arrangement is typically used when the property is leased to a third … Read more
A level payment mortgage is a mortgage in which the monthly payment is the same every month for the life of the loan. The payment is calculated so that the loan is paid off at the end of the term. The advantage of a level payment mortgage is that the borrower knows what their mortgage … Read more
The Home Affordable Modification Program (HAMP) was a government-sponsored program designed to help struggling homeowners avoid foreclosure. HAMP offered financial incentives to mortgage servicers and investors to encourage them to modify mortgages in a way that reduced monthly payments for borrowers. Eligible homeowners could receive a modification to their mortgage that would lower their monthly … Read more
A mortgage bond is a debt security that is backed by a mortgage or group of mortgages. Mortgage bonds are created when a lender bundles together a group of mortgages and sells them to investors. The income from the mortgages is used to pay interest and principal to the bondholders. Mortgage bonds are typically issued … Read more
The maximum loan amount is the largest amount of money that a lender is willing to give you for a mortgage. This amount is determined by the lender based on a number of factors, including your credit score, income, and the value of the home you’re buying. What happens when loan term ends? When a … Read more
Credit Scores, Interest Rates. What is a Subprime Mortgage? A subprime mortgage is a type of mortgage loan that is typically offered to borrowers with poor credit scores. Interest rates on subprime mortgages are usually higher than those on regular mortgages, and borrowers may be required to make a larger down payment. Is FHA a … Read more
The Total Housing Expense Definition is the sum of all monthly payments on a home, including mortgage principal, interest, taxes, and insurance. What is the formula for calculating the total housing ratio quizlet? There is no definitive answer to this question as the total housing ratio is dependent on a number of factors, including the … Read more
A readvanceable mortgage is a type of mortgage loan in which the borrower has the option to “re-advance” or “refinance” the loan at any time, without having to go through the traditional mortgage application process. This can be an attractive option for borrowers who anticipate needing to access additional funds during the life of their … Read more
A non-owner occupied piece of real estate is a property that is not lived in by the owner. This can include investment properties, vacation homes, or other types of property that are not the owner’s primary residence. Non-owner occupied properties typically have higher mortgage rates than owner-occupied properties, since they are seen as being more … Read more
