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There were 44 articles found in this category:
  1. questionWhat is the Right of Rescission?
    A right under federal law set forth by the Truth in Lending Act that gives a borrower the right to cancel a home equity loan or line of credit with a new lender, or to cancel a refinance transaction done with another lender other than the current mortgagee within three days of closing. The right ...

  2. questionWhat is the Mortgage Forgiveness Debt Relief Act?
    This Act protects consumers who have foreclosed or sold their homes in a short sale from the added burden of a hefty tax bill on the forgiven debt. Normally anyone whose debt is forgiven is responsible for paying taxes on the amount forgiven (known as "phantom income"). Under the Act, a taxpayer ...

  3. questionWhat will my interest rate be?
    Your interest rate will depend primarily on three things: your credit score, how much you borrow, and the state you live in. Each state has different regulations governing interest rates. The general rule of thumb is that the better your credit score, the lower your interest rate will be.

  4. questionWhat can I do to increase the chances of loan or credit card approval?
    To increase your chances of loan approvals in the future, we recommend that you pay your bills on time, use your accounts responsibly, keep your credit card balances low, and remove negative inaccuracies from your credit reports. If you do not already have a credit card, you can build your credi ...

  5. question What’s a short sale?
    A short sale occurs when your mortgage lender agrees to accept less than the full principle loan amount but considers the loan paid in full. Example: Let’s say you owe $100,000 on your mortgage. If someone offered you $85,000 and your mortgage lender accepted the offer, the lender would be ...

  6. questionWhat is the prime rate?
    The prime rate, also known as the Prime Lending Rate, is a term used to refer to the interest rate used by banks. The prime rate normally follows inflation rates. In the past, the prime rate was the actual interest rate. This is no longer the case. The prime rate varies little among banks, ...

  7. questionWhat is private mortgage insurance (PMI)?
    Private Mortgage Insurance (PMI) is a form of insurance that protects the lender by paying the costs of foreclosing on a house if the borrower stops paying the loan. Private mortgage insurance is usually required if the down payment is less than 20 percent of the sale price. Thinking about purch ...

  8. questionI heard that there's a new change in loan modification reporting that will help consumers; what is the latest?
    November 1st, 2009, brought with it good news for consumers who want to modify their mortgages without lowering their credit scores. It was the first day that a new way of reporting a loan modification to the credit bureaus became available to mortgage lenders. From this point forward, mortgage ...

  9. questionWhat is a reverse mortgage?
    A reverse mortgage is a mortgage that allows elderly borrowers to access their equity without selling their home. The lender makes payments to the borrower with a reverse mortgage. The loan is repaid from the proceeds of the estate when the borrower moves or passes away. Learn more about the hom ...

  10. questionWho is Fannie Mae?
    Fannie Mae is the largest mortgage investor in the country. It's a government-sponsored enterprise that buys mortgages from lenders, bundles them into investments, and sells them on the secondary mortgage market. Fannie Mae is formerly known as the Federal National Mortgage Association. In Septe ...

  11. questionWho is Freddie Mac?
    Freddie Mac, formerly known as the Federal Home Loan Mortgage Corporation, is a government-sponsored firm that buys mortgages from lenders, pools them with other loans, and sells them to investors. In September 2008, Freddie Mac and its counterpart Fannie Mae were placed into conservatorship of ...

  12. questionWhat is a back end ratio?
    Your back-end ratio is the same as your debt-to-income ratio: it's the percentage of your monthly pre-tax income that is used to pay off debts such as auto loans, student loans, and credit card balances. Lenders look at two ratios: The front-end ratio is the percentage of monthly pre-tax earning ...

  13. questionWhat is a debt to income ratio?
    Your debt-to-income ratio is the percentage of your monthly pre-tax income that is used to pay off debts such as auto loans, student loans, and credit card balances.

 Lenders look at two ratios: The front-end ratio is the percentage of monthly pre-tax earnings that are spent on hous ...

  14. questionWhat is FHA, the Federal Housing Administration, and what does it do?
    The Federal Housing Administration (FHA) is a division of the Department of Housing and Urban Development (HUD) which provides mortgage insurance and sets construction and underwriting standards.

  15. questionWhat is a home equity line of credit?
    A Home Equity Line of Credit (HELOC) is an open-ended loan that is backed by the part of a home’s value that the borrower owns outright. This type of loan is used much like a credit card. Home equity lines of credit can be effective ways to borrow large sums of money with a relatively low ...

  16. questionWhat is a fixed rate option?
    A fixed-rate option is a home equity line of credit (HELOC) financing option that allows borrowers to specify the payments and interest on a portion of their balance. This can be done a few times during the life of the loan, usually for an additional fee. Thinking about purchasing or refinancing ...

  17. questionWhat is appraised value?
    The appraised value of a home is an educated opinion of how much a property is worth. An appraiser considers the price of similar homes in the area, the condition of the home, and the features of the property to estimate the value. For a standard home or condominium, a typical appraisal fee is ...

  18. questionWhat is an 80 10 10 loan?
    A 80-10-10 loan is a combination of an 80 percent loan-to-value first mortgage, a 10 percent home equity loan, and a 10 percent down payment. The loans can be used to eliminate the need for private mortgage insurance (PMI). Thinking about purchasing or refinancing a home? Learn about the homebuy ...

  19. questionWhat is an alternative mortgage?
    An alternative mortgage is any home loan that is not a standard fixed-rate mortgage. This includes ARMs, reverse mortgages, and jumbo mortgages. Thinking about purchasing or refinancing a home? Learn about the homebuying process and refinancing options.

  20. questionWhat is a commitment fee?
    A commitment fee is a fee paid by a borrower to a lender in exchange for a promise to lend money on certain terms for a specified period. It is usually charged in order to extend a loan approval offer for longer than the 30-60 day standard period. Quality lenders don’t usually charge these ...

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