What is Private Mortgage InsurancePrivate mortgage insurance (PMI) is a policy that protects lenders who make loans to individuals who want to buy or refinance a home, but are unable to come up with the required 20% down payment.Private Mortgage Insurance Facts:PMI plays a valuable role in expanding home ownership.With PMI, families can purchase homes with as little as 3-to-5 percent down payment on a home.Nearly 1 million people a year buy or refinance a home with PMI.PMI cost home ... : Private Mortgage Insurance
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. Adjustable rate mortgages generally have lower initial interest rat... : When to Consider an Adjustable Rate Mortgage
Open Mortgage (6-month to 1 year terms are most common):
Allows borrowers to repay all or part of the principal amount of their mortgage at any time without penalty. You usually have to pay a higher interest rate for this type of mortgage since it offers greater prepayment flexibility. This flexibility makes open mortgages ideal for homeowners who plan to sell in the near future or who want to wait for rates to drop before locking into a longer-term mort... : Open Mortgage (6-month to 1 year terms are most common):
Wraparound mortgage
A second mortgage which leaves the original mortgage in place. The wraparound mortgage is held by the lending institution as security for the total mortgage debt. The borrower makes payments on both loans to the wraparound lender, who in turn makes payments on the original primary mortgage. ... : Wraparound mortgage
The Fed's boilerplate
The Fed's boilerplate Greenspan sticks with the same, if truncated, message on rates and frets about housing. June 10, 2005: 8:29 AM EDT NEW YORK (CNN/Money) - So Mr Greenspan made himself perfectly clear: more rate hikes ahead. What's interesting is how little verbiage the normally more loquacious Fed chairman put into delivering that message. Is it because he feels the reasons are so obvious? Maybe he himself is uncertain about the economy so it's easier to jus... : The Fed's boilerplate
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. Adjustabl... : adjustable rate mortgage
Closed Mortgage
(1 to 5-year terms are most common but can go as high as 10+ years):These types of mortgages have structured repayment schedules with specific amounts due on a weekly or monthly basis. They usually have the lowest interest rate available but cannot be prepaid or discharged before the end of the term without having to pay a significant penalty. Ideal f... : Closed Mortgage
Insured or High-Ratio Mortgage
With a high-ratio mortgage the purchaser has less than a 25% down payment. These mortgages are often referred to as NHA mortgages because they are ed under the provisions of the National Housing Act. You can borrow up to 95% of either the purchase price or the appraised value of the property (whichever is less) but are required by law to insure the m... : Insured or High-Ratio Mortgage
Closed Mortgages
In a closed mortgage, the interest rate is locked in for the full term of the mortgage and you must pay compensation, known as pre-payment charges, to the mortgage lender to renegotiate the interest rate or pay off the balance prior to the end of the term. Closed mortgages are usually the better choice for buyers who suspect that interest rates may be on the rise and for those who are not pl... : Closed Mortgages
Housing Starts Surge 6.4 Pct. in October
WASHINGTON (Reuters) - U.S. housing starts jumped a larger-than-expected 6.4 percent in October to the busiest pace since December as buyers took advantage of low mortgage rates, a government report showed on Wednesday. However, permits, an indicator of builder confidence, dipped unexpectedly. Housing starts climbed to a seasonal... : Housing Starts Surge 6.4 Pct. in October