Tag Archives: home loans

What Are Assumable Mortgages

Assumable mortgages mean that the current mortgage can be assumed and undertaken by another person who buys the home from the current owner under the same terms and conditions or a variation in the terms and conditions if stipulated in the mortgage contract. In eligible mortgage the home buyer assumes all responsibility for the sellers […]

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 […]

Annual Percentage Rate, APR of a Mortgage

The truth in lending now requires that lenders calculate an annual percentage rate when quoting the interest rate for a home loan to the borrower. That annual percentage rate, APR, is supposed to take into consideration the entire cost of the loan which includes the loan origination fee, processing fee, closing costs and any other […]

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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 […]

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 […]

Mortgage Or Deed Of Trust – Know The Difference

The security instrument used in your mortgage can differ from one state to the other. Mortgages and deeds of trust are the most common types of security instruments. Let us discuss both of them separately. Mortgage Contracts Mortgage contracts as a security instrument have been around for much longer than deeds of trust. Which is […]

What Is a Mortgage

If you ask people, most of them will think that mortgage is another word for a home loan. They will tell you that it is a loan that is taken out to buy the property. While for all practical purposes this definition is correct, in order to understand how about this really works, you should […]