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 amount in one or two years because the monthly payments may be too high. ... : Length of Second Mortgage
Adjustable Rate Mortgages (ARM )
ARM’s are mortgages whose rates adjust according to the terms of the contract you made with the lender.Usually interest rates are fixed for the first 1, 3, 5, 7 or 10 years. After that period is up, rates will be allowed to fluctuate within the limits of your contract with the lender.Terms are usually 15 or 30 years (although you can negotiate just about any duration you want). There can be a balloon involved.Because the lender is not taking as big a risk on losing money if interest rates ri... : Adjustable Rate Mortgages (ARM )
Mortgage delinquencies
Tuesday, February 01, 2005
Mortgage delinquencies down for conventional loans, but up in other categories
Mortgage delinquencies for conventional loans in 2003 dropped from the 2002 figures, according to the latest numbers available to mortgage bankers. Arthur Cox, director of the Real Estate Education Program at ... : Mortgage delinquencies
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 ways to pay down ... : CLOSED MORTGAGES / FIXED RATE MORTGAGES
Tame Consumer Price Rise Eases Fears
By Tim Ahmann WASHINGTON (Reuters) - Consumer prices inched up just 0.1 percent in January as energy prices tumbled sharply for the second straight month, according to a report on Wednesday that helped soothe recent anxiety on inflation. Excluding volatile food and energy costs, the Consumer Price Index, a widely used inflation gauge, rose 0.2 percent for a fourth straight month in January, the Labor Department said. Wall Street economists... : Tame Consumer Price Rise Eases Fears
NEW YORK (Reuters) - New applications for U.S. home loans fell last week as 30-year mortgage rates reached their highest levels in a month, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted market index, a measure of mortgage activity, fell by 4.5 per... : Mortgage Applications Fall Last Week-MBA
Interest Only Mortgages
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 fi... : Interest Only Mortgages
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
Mortgage applications fall sharply
Mortgage applications fall sharply Industry group's survey says higher interest rates depress refinancing activity; purchases rise. March 2, 2005: 7:38 AM EST NEW YORK (Reuters) - Applications for U.S. home mortgages decreased last week as a sharp drop in home refinancing activity offset an increase in purchasing amid a rise in interest rates, an industry group said Wednesday. The Mortgage Bankers ... : Mortgage applications fall sharply
What is a bridge loan?
It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old ... : What is a bridge loan?