If you are looking at multiple offers for the lowest mortgage rate, Here is what you need to know: Use the same rate for all lenders you are comparing.If you are comparing a 4.5% at Lender A, then make sure you are comparing at 4.5% and Lender B and C, then it’s a simple as using D minus J.and finding who is offering the best terms at that given rate.
Mortgage terms : Term – The period of time you are under contract with a specific lender at the interest rate that they are providing for that time period. Amortization – A term used to describe the period of time over which the entire mortgage is to be paid assuming regular payments. Usually 25 or 30 years. Debt service ratio – The percentage of the borrower’s income used for monthly payments of principal, interest, taxes, heating costs, condo fees (if applicable) and debts. GDS is gross debt service – how much you spend on Principal, Interest, Taxes and Heating. TDS is total debt service – GDS plus all other debt payment obligations. Default – A homeowner is ‘in default’ when he or she breaks the terms of a mortgage agreement, usually by not making required mortgage payments or by not making payments on time. Down payment – The money that you pay up-front for a house. Down payments typically range from 5%-20% of the total value of the home, but can be anything above 5%, if you qualify. Early Discharge Penalty – A penalty you may pay your lending institution for breaking the mortgage contract early. This is usually 3 months interest or the Interest Rate Differential (IRD), whichever is larger. See below for IRD.
Taking care of your financial situation is very valuable. Here are a few advices related to financial issues. Secured credit cards are an option for people who don’t have a ?credit history or who have damaged their credit status. Secured cards require a security deposit to be placed on the card. The credit limit on a secured credit card is typically equal to the amount of the deposit made on the card, but it could be more in some cases – such as a major default such as defaulting on a mortgage payment. It’s worth noting that you’re still expected to make monthly payments on your secured credit card balance.
Payday Loan Interest: Payday lenders charge borrowers extremely high levels of interest that can range up to 500% in annual percentage yield (APR). Most states have usury laws that limit interest charges to less than approximately 35%; however, payday lenders fall under exemptions that allow for their high interest. Since these loans qualify for many state lending loopholes, borrowers should beware. Regulations on these loans are governed by the individual states, with some states even outlawing payday loans of any kind. In California, for example, a payday lender can charge a 14-day APR of 459% for a $100 loan. Finance charges on these loans are also a significant factor for borrowers as the fees can range up to approximately $18 per $100 of loan. More financial calculators at Mortgage repayment calculator.
Terms: Asset: An item of a tangible or intangible nature that has value or benefit, such as the capacity to generate revenue or interest. An example of a tangible asset is real estate and an intangible asset is a business brand name.
Cash flow: The cycle of money coming into and out of an account according to income/revenue and expenses. Negative cash flow is when expenses fall due before income/revenue is available and the account experiences a shortfall. Positive cash flow is when income/revenue outstrips expenses and there is excess cash in the cycle. More financial info on Mortgage amortization.
Net Income: In its most basic definition, net income refers to a company’s total earnings or profit. Simply put, net income is the difference calculated when subtracting all expenses (including tax expenses) from revenue. When a company’s net income increases, it’s normally a result of either revenue increasing or expenses being slashed. It goes without saying that an increase in net income is generally perceived as a positive thing and factors into a stock’s performance.
Mortgage broker – A company or individual that finds mortgage financing for individuals and companies whether for purchase, refinance, lender switches, etc. A broker does not actually lend money but seeks out a lender and arranges the mortgage terms. More on Calculate mortgage payment. Home Equity Line of Credit – A loan that is secured against your house, like your mortgage, but you obtain a maximum amount that you may borrow but only borrow in the amounts that are needed. You only make payments, minimum is interest only, on what you have borrowed at any given time.