What is a fixed rate mortgage?

Posted on February 11th, 2015 by Jody

A fixed rate mortgage is a home loan with steady interest rates and monthly payments that do not change throughout the life of the loan.

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What is the adjustable rate mortgage?

Posted on February 11th, 2015 by Jody

(ARM) have monthly payments that change periodically due to fluctuations in market interest rates.

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What is an interest-only mortgage?

Posted on February 11th, 2015 by Jody

are loans that require the borrower to pay only interest on the principle in monthly installments for a fixed period.

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What is an amortized mortgage?

Posted on February 11th, 2015 by Jody

Amortized Mortgages refers to loans that are paid in installments comprised of both principle and interest, and which is paid off (or amortized) over a fixed period of time.

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How do you calculate LTV or loan-to-value ratio?

Posted on February 11th, 2015 by Jody

The loan-to-value (LTV) ratio of your home is calculated by dividing the fair market value of your home by the amount of your home loan.

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What are lender fees?

Posted on February 11th, 2015 by Jody

These fees usually range anywhere from 2 to 5 percent and may include, but are not limited to, things such as appraisal costs, document preparation, and application costs.

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What is the Truth in Lending Act?

Posted on February 11th, 2015 by Jody

The Truth in Lending Act is a federal law that was enacted as part of the Consumer Protection Act. This law requires lenders to reveal all information to the borrower and detail all costs associated with the transaction

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