In the widest definition possible, amortization (pronounced: am-ohr-tih-ZAY-shun) is the scheduled process by which a loan’s principal balance pays down to $0. The opposite of an amortizing loan is an interest only loan for which there is no scheduled principal repayment schedule. With respect to mortgages, amortization is what determines how much of a monthly [...]
Your name is worth everything to youit's your identity, it's YOU. Here's breaking news you need to knowand you need to let all your family and friends know right away as well. Few people realize that each time their credit is checked, the information provided to the credit bureaus (Equifax, TransUnion, Innovis or Experian) immediately [...]
In an effort to limit risky borrower behavior, Fannie Mae announced a new round of mortgage guideline changes last week. Unlike previous its previous 20-plus updates that raised income requirements and minimum credit scores (among other changes), Fannie’s latest guideline tweaks focus on the value of its underlying mortgage assets — home equity. Effective December [...]
Last week, the Dow Jones Industrial Average recorded both its largest one-day point gain and second-largest one-day point loss in history. Mortgage markets got whipsawed, too. From day to day, huge rate swings made mortgage rate shopping difficult. It wasn’t uncommon for lenders to change pricing 3 times per day. When the week closed, though, [...]
Private Mortgage Insurance (PMI) is a mortgage lender’s insurance policy against highly-leveraged homeowners. It’s typically required when homeowner equity is less than 20 percent at the time of closing. With PMI defaults up 40 percent over last year, though, private mortgage insurers are taking big losses. They’re also taking outsized steps to prevent additional claims [...]
Betcha Didn’t Know You Can Own Real Estate in Your IRA… Your Broker Does, But He Ain’t Tellin! Location: Vancouver, WA You re invited to attend an empowering, hands-on real estate investing workshop unlike any other for FREE!Register Under Links TabBelowIn this hands on workshop we will be dispelling the myths about Self-Directed Retirement Plans [...]
The Short Answer: YES! I myself have heard of this in the past; however, my naive assumption was that it was illegal. Well, a short while back I was proven wrong. And, for those of you in the Portland area, you can get a chance to have your eyes opened too. With a Self-Directed Retirement [...]
As the stock market dips then jumps then dips again, it’s important to remember that markets are unpredictable and nobody knows what will happen tomorrow. Unfortunately, that doesn’t stop the analysts from trying. An obvious example comes from May of this year. As the price of oil crossed $120 per barrel on its way to [...]
For homeowners with soon-to-adjust adjustable rate mortgages, the recent banking turmoil worldwide may lead to budgetary pain. This is because most conforming ARMs made since 2003 are based on a borrowing cost called LIBOR and LIBOR is up an uncharacteristic 2 percent since September. LIBOR stands for London Interbank Offered Rate and is the rate [...]
As congress considers various bailout proposals for the financial system, there is a little known 'bailout' for home owners that has already been enacted into law. Section 1403 of the new housing bill that was signed into law on July 30, 2008 (HR 3221) requires mortgage servicers to modify loans for homeowners and help them [...]
