| How A Mortgage Calculator Can Save You Bundles Of Time
A mortgage calculator is perhaps the most valuable tool for anyone shopping for a new home. The reason is because a mortgage calculator can provide a variety of different figures, including monthly payments, affordability and interest costs. A mortgage calculator allows an individual to input his/her monthly income, monthly debt payments and returns an estimated amount on how much he/she can borrow for a mortgage loan. This number is only an estimate and cannot be used as a guarantee, but it certainly gives a prospective homeowner the knowledge to move forward with plans for home ownership. Anyone who enjoys surfing the web can find a mortgage calculator available at almost every lending website, especially those that offer multiple lender queries. Some good examples are Lending Tree and eLoan, both of which offer a free mortgage calculator.
Loan Comparison: Interest Only Home Equity Loans Versus Balloon ...
What is an interest only home equity loan? This is a loan where the principal borrowed is not paid back each month only the interest is repaid. The principal borrowed may be due in 10, 15 or 20 years. A borrower may decrease the amount of principal due in the future by making payments on the principal. Interest only mortgages may be adjustable rate mortgages (ARM) or fixed rate mortgages. A fixed rate mortgage will have a set payment for the period of the loan. ARM mortgages will have a fixed rate initially for a six-month period, and then the rate will increase or decrease based on an index, prime rate or five-year treasury rate. A balloon second mortgage is a short-term mortgage with a fixed rate of interest. Balloon mortgages require repayment of principal and interest.
Bank executive explains mortgage fallout
REEDSBURG-In the last several months, financial news services have been reporting on the demise of many mortgage lenders that specialized in the "Subprime" mortgage market. As of March 25, no less than 43 of these lenders have gone out of business, leaving their creditors and investors holding millions of dollars of debt and/or securities that may very well end up worthless. Much of the real estate speculative frenzy of the last few years was driven by loans provided by these lenders. Offering "exotic" loan financing, such as the Option ARM, interest only, 40 and 50 year mortgages and a host of other non-traditional loans has become a "fool's paradise," as many borrowers are now learning. The result? It is anticipated that 20 percent of all Subprime mortgages originated in 2005 and 2006 will end up in foreclosure.One of the contributing factors to this implosion has been the unbridled zest for fees and profits by lenders who have little interest in educating the borrower in a way that helps the borrower focus on a loan that they can afford, and ultimately pay back, without experiencing excessive pressure on their household budget.
|
