NEW YORK (Reuters) - Applications for U.S. home mortgages decreased last week as rising interest rates led to a sizable decrease in refinancing activity and purchasing, an industry group said on Wednesday. "The increase in mortgage rates has reduced application activity across the board, particularly for refinances. Refinance applications are down more than 60 percent relative to this time last year," Michael Fratantoni, MBA's senior director of single family research and economic... : Mortgage Applications Down Last Week-MBA
Federal Housing Administration Mortgages (FHA)
These are mortgages that are guaranteed against default by the Federal government. Lenders are willing to give mortgages to homebuyers with smaller down payments than under conventional financing because the Federal government guarantees the loan against default. The homebuyer must pay an insurance premium for this privilege and this cost is usually added to the mortgage. In order to quali... : Federal Housing Administration Mortgages (FHA)
Second mortgage
A secured loan (or mortgage) that is subordinate to another loan against the same property. More specifically, the second loan in sequence.In real estate, a property can have multiple loans against it. The loan which is registered with county or city registry first is called the first mortgage. The loan registered second is called the second mort... : Second mortgage
U.S. 30-, 15-Year Mortgage Rates Rise
WASHINGTON (Reuters) - Interest rates on U.S. 30-year and 15-year mortgages edged higher this week amid signs the economy is improving, stoking inflation concerns, mortgage finance company Freddie Mac said on Thursday. U.S. 30-year mortgage rates rose to an average of 5.82 percent in the week to Oct. 7, up from 5.72 percent a week earlier. Freddie Mac... : U.S. 30-, 15-Year Mortgage Rates Rise
U.S. Stocks Jump as Oil Slides on Data
NEW YORK (Reuters) - U.S. stocks climbed on Wednesday, extending Tuesday's rally, as oil prices fell sharply after the government reported an unexpected rise in crude and distillate stocks last week. The Dow and the Standard & Poor's 500 hit intra-day highs for the year. U.S. light crude (CLc1: Quote , Profile , Research ) futures slid $1.51 to $44.25 a barrel. Lower crude prices ar... : U.S. Stocks Jump as Oil Slides on Data
With adjustable-rate mortgages the interest rate is linked to current market rates and fluctuates with economic changes. When interest rates go down, so do your mortgage payments. When rates go up, your mortgage payments increase accordingly. ARM interest rates are usually set lower than those found in fixed-rate mortgage, at least at the beginning of the term. This means that a homebuyer opting for an ARM will be able to qualify for a larger loan since they are paying less interest. However,... : adjustable-rate mortgages
Mortgage Applications Climb Last Week
NEW YORK (Reuters) - New applications for U.S. home loans rose last week, even as 30-year mortgage rates increased from the previous week, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted market index, a measure of mortgage activity, rose by 8.2 percent to 761.7 for the week ended... : Mortgage Applications Climb Last Week
graduated-payment mortgage
a mortgage loan which provides for initial lower monthly payments, with payment amounts increasing gradually over a period, usually up to 10 years, under the assumption that the borrower's income will also rise during the period. ... : graduated-payment mortgage
reverse mortgage
A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments during the term of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity gets smaller.The loan is not due and payable until the borrower no longer occupies the home as a principal residence, e.g. the last surviving borrower sells, moves out permanently or passes awa... : reverse mortgage
Top Fannie Mae Execs Step Down
By Mark Felsenthal WASHINGTON (Reuters) - The chief executive and chief financial officer of U.S. mortgage finance giant Fannie Mae stepped down late on Tuesday after regulators exposed accounting errors that are expected to force a massive earnings restatement. Fannie Mae's board of directors announced that CEO Franklin Raines was retiring and Chief Financial Officer Timothy Howard was resigning. After months of drama about... : Top Fannie Mae Execs Step Down