Is an ARM Right For You?
Lets start by taking a look at 7 key elements of an adjustable rate mortgage:1) ARM defined: While a fixed rate loan is constant and never changes throughout the life of the loan, an adjustable rate mortgage changes periodically. The interest rate of an ARM goes up and down based on whatever ... more...

Are Option Pay ARM's Risky?
The general consensus about the riskiness of Option Pay mortgage loans is that they are high risk; high risk to both the borrower and the lender. To add even more risk to the loans, consumers and loan officers not only have to understand initial and lifetime caps, various indicies and margins, but ... more...

Selecting the Right Mortgage for You
A mortgage is a loan you take out to buy a home. This loan covers the "principal" (purchase price of the house minus your down payment) plus the "interest," which is the fee a lender charges you to borrow the money.There are various types of mortgages, including Fixed-rate, Adjustable-rate, Balloon ... more...

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...

What Is An Adjustable Rate Mortgage or ARM?
An adjustable rate mortgage is a mortgage loan that is fixed for a set period of time and then adjusts based on the rates during the adjustment period. Some common adjustable rate mortgage loans terms are 1/1, 3/1, 5/1, 7/1, and 10/1. The first number in what appears to be a fraction is the amount ... more...

Secrets of the Option ARM Loan
How Does an Option ARM Loan Work?Option ARM (also called Pick A Payment or Pay Option ARM) loans work by providing the borrower with four payment options each month.Before we get into the payment options, let's review some of the important terms and concepts involved with this loan program.ARM - ... more...

Ending Your Private Mortgage Insurance Early
Private mortgage insurance, or PMI, is the safety net of the lender. PMI benefits lenders because it guarantees payment on the balance of loans not covered by the sale of foreclosed properties.If a borrower makes a down payment of 20% of the cost of the home, the lender can generally trust that he ... more...

Private Mortgage Insurance (PMI)
If your down payment on a home is less than 20 percent of the appraised value or sale price, you must obtain private mortgage insurance, known as PMI, with your lender. This will enable you to obtain a mortgage with a lower down payment because your lender is now protected against any default on ... more...

Fixed Rate Mortgage or ARM? Which is Better?
The fixed rate mortgage offers the certainty of a constant monthly payment, but an adjustable may seduce you with its lower payment. Security or affordability? Which do you choose? Just what is a home buyer to do?Which loan you eventually choose may depend more upon your personality than a careful ... more...