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 requi... : Insured or High-Ratio 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 for purchasers who need to lock in their mortgage costs for long-term cash flow planning. While most closed m... : Closed Mortgage
Mortgage Applications Unchanged Last Week
NEW YORK (Reuters) - Applications for U.S. home mortgages were unchanged for the week ended Dec. 17 from the prior week as an increase in refinancing offset a decrease in purchases, an industry trade group said. The Mortgage Bankers Association said its seasonally adjusted index of mortgage activity was flat at 689.3 in the week ended Dec. 17, following... : Mortgage Applications Unchanged Last Week
Jumbo mortgage
A mortgage loan larger than the maximum eligible for purchase by the two Federal agencies, Fannie Mae and Freddie Mac.... : Jumbo mortgage
Job Gains Strong, But Jobless Rate Climbs
By Tim Ahmann WASHINGTON (Reuters) - U.S. employers added 262,000 jobs last month, the biggest gain in four months, but the good news for workers was tempered by a rise in the jobless rate. Other reports on Friday showed an unexpected, if slim, rise in factory orders in January and a dip in consumer sentiment last month. The Labor Department said February's increase in non... : Job Gains Strong, But Jobless Rate Climbs
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 qualify for an FHAM the property in question must meet certain requirements. The maxi... : Federal Housing Administration Mortgages (FHA)
Mortgage Applications Decreased Last Week
NEW YORK (Reuters) - Applications for U.S. home mortgages dropped last week as refinancing and purchasing activity slumped in a holiday shortened week, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 10.6 percent to 605.7 in the week ended Dec. 31, after... : Mortgage Applications Decreased Last Week
Private mortgage insurance (PMI)
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)
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 choi... : Closed Mortgages
Snow Warns Fannie, Freddie Pose Threat
By Kristin Roberts WASHINGTON (Reuters) - Mortgage giants Fannie Mae and Freddie Mac could threaten the economy if Congress fails to curb their investment activities, U.S. Treasury Secretary John Snow said on Thursday. In a second day of hearings before the U.S. Senate Banking Committee on the hot political issue of how to rein in government-sponsored enterprises, Snow told Congress ... : Snow Warns Fannie, Freddie Pose Threat