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What Is Loan APR (Annual Percentage Rate)

Annual percentage is a measure of the cost of taking out the mortgage loan or any other form of credit that must be reported by the lenders under Truth in Lending regulations. The APR was designed to be complete and accurate measure of all costs concerned with taking out the mortgage. It was supposed to […]

What Is Amortization

The schedule of payments that cover the repayment of interest as well as the principal owed on the loan is called amortization schedule. Amortization is the repayment of the principal of the loan amount as well as the interest due on the loan. Scheduled mortgage payment is payment that the borrower is required to make […]

Cosigning On A Home Loan – Why You Should Rethink That

Learn all about cosigning, what does it mean to cosign a loan application, should you do it and how you can get out of it. Cosigning is the process by which another person shares the responsibility for paying off somebody else’s debt obligation in the event that the primary party defaults on the payment. The […]

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3 Simple Steps To Choose The Right Mortgage Loan

“What is the right mortgage loan for me?” Ask yourself the following 3 questions to get the right answer. How long do you intend to stay in your home This is a very important question to answer before you decide which kind of a mortgage loan is correct for yourself. Borrowers who do not stay […]

Private Mortgage Insurance, PMI

Pvt. mortgage insurance or PMI is the insurance that you usually have to pay to the mortgage lender if you are making a down payment of less than 20%. Pvt. mortgage insurance protects the lender against default by the borrower and covers his losses for the entire foreclosure proceedings . Lenders mostly suffer loss when […]

Mortgage Prepayment Penalties

One of the warnings that one issues regarding a mortgage loan is to always watch out for a pre-payment penalty clause in your contract. A prepayment penalty is the charge that the lender levies on a borrower for paying off the mortgage before its due date. The paint penalties are not allowed on FHA, VA […]

Long-Term and Short-Term Mortgages

Any mortgage loan that is taken for the duration more than 30 years is considered to be a long-term mortgage. Conversely any mortgage that has a term for less than 30 years is considered to be a short-term mortgage. A few years back 30 year mortgages were the most common kind of mortgages that could […]

What Are Conforming and Jumbo Loans

Conforming loans are mortgages that fall within the limits of Fannie Mae and Freddie Mac’s purchasing limits. The mortgage that exceeds this maximum permissible amount is called jumbo conforming loans, jumbo loans or nonconforming loans. As mentioned before, the limits set on Fannie Mae’s and Freddie Mac’s purchasing amount varies and has changed a couple […]

Primary and secondary mortgage market

Most of the mortgage lenders that lend you money sell off that mortgage further on to other institutions. The ones that keep the mortgage that they originate with themselves are called the primary mortgage lenders. This market of mortgage lending where the mortgage loan originator keeps control of the mortgage is called the primary market. […]

3 Government Run Home Loan Programs

There are a few government agencies that also provide housing loans to people. It is estimated that about 20% of residential mortgages are funded by one government agency or the other. These loans are referred to as government housing loans or as conventional housing loans. Here is a quick summary of the different types of […]