Peter’s Business and Economy Issues

Mortgage payment protection is a simple, low-cost way to purchase long-term peace of mind for you and your family. If you can’t work due to sickness, unemployment or an accident, mortgage protection plans will help pay your mortgage - and policies start at a much lower cost than you might think.
Read more »

Up until a few years ago, lenders and banks had curtailed the amounts and restricted the circumstances that allowed you to get 2nd mortgages. In fact, a second mortgage was considered disgraceful and regarded as evidence that you were suffering from financial hardship. However, that situation no longer exists. There is now a wide selection of loans available to fit your needs, and it’s much easier to get a second mortgage on your home.
Read more »

Before talking about the essence and advantages of home equity Credit Line and Home equity loan, let’s give the definition of Home equity. Home equity is essentially the amount of ownership that has been built up by the holder of the mortgage through payments and appreciation. Typically, residential property is bought through a mortgage, which is then paid off over a number of years, often 15 or 30. After the mortgage has been fully repaid, the property then belongs to the mortgagor, namely the buyer.
Read more »

A payment-option ARM is an adjustable-rate mortgage that allows you to choose among several payment options each month. The options typically include the following:

• Minimum Payment

With the minimum payment option, your monthly payment is set for 12 months at your initial interest rate. After that, the payment changes annually, and a payment cap limits how much it can increase or decrease each year.

Read more »

An interest-only (I-O) ARM payment plan allows you to pay only the interest for a specified number of years, typically between 3 and 10 years. This allows you to have smaller monthly payments for a period of time. After that, your monthly payment will increase–even if interest rates stay the same–because you must start paying back the principal as well as the interest each month. For some I-O loans, the interest rate adjusts during the I-O period as well.
Read more »

A hybrid ARM has an initial fixed rate that lasts for a set number of years (usually three, five, seven or 10), then adjusts annually thereafter. A traditional ARM typically has its first rate adjustment after one year. The “hybrid” refers to the blend of fixed rate and adjustable rate characteristics found in hybrid ARMs.
Read more »

A Jumbo Mortgage is a mortgage with a loan amount above conventional loan limits. This standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac. The loan amounts reflect average loan sizes nationwide. Jumbo mortgages apply when Fannie Mae (FNMA) and Freddie Mac (FHLMC) limits don’t cover the full loan amount.
Read more »

With a lower adjustable interest rate the monthly amount will be less. You may therefore qualify for a larger mortgage, or you may qualify for a loan easier. Lenders use your gross monthly income and your monthly mortgage payment to determine how much you can qualify for.
Read more »

An adjustable rate mortgage, often called ARM, is a mortgage loan program in which the interest rate is adjusted periodically based on an index. The interest rate varies based on one or many indexes. This could be to the one-year treasury bills or to another specific index. You may note that different lenders tie the adjustable rate to different indexes.
Read more »