Loans

Understanding How Mortgage Interest Rates Work

Question: What do home mortgage loans (including second mortgage loans), retail installment loans, automobile loans, home improvement loans, and mobile home loans, have in common — aside from being loans to consumers?

Answer: The interest charge sometimes is calculated monthly and sometimes daily. With a monthly interest rate the borrower is charged for each month, whereas with a daily interest rate the borrower is charged for each day.

Why is this distinction important? Because daily rates are a potential trap for unwary borrowers, countless numbers of whom have found themselves permanently, usually with no understanding of how it happened. The problem has been entirely overlooked by regulators, including the Consumer Financial Protection Bureau.

Mortgage applications decrease as rates move higher

Mortgage applications decreased 1.9% for the week ending Jan. 15 from one week earlier, per data from the Mortgage Bankers Association’s weekly survey. The drop comes after a robust 16.7% jump in applications the prior week.

The post Mortgage applications decrease as rates move higher appeared first on HousingWire.

NBKC Mortgage Review: An Award-Winning Online Lender

Today we’ll analyze NBKC Bank, formerly known as National Bank of Kansas City, which a depository that’s also big on home loans, funding billions in mortgages annually. They refer to themselves as an “award-winning national mortgage company” thanks to their many accolades and numerous 5-star customer reviews. Additionally, NBKC is a top-15 VA loan lender [&hellip

The post NBKC Mortgage Review: An Award-Winning Online Lender first appeared on The Truth About Mortgage.

Mortgage Loan Purpose Types Overview

The loan purpose type specifies the purpose for which the loan proceeds will be used. The loan purpose may be to purchase a home or to refinance an existing mortgage to obtain a lower interest rate or to get cash. Mortgage industry investors track and report the distribution of loan purpose types in their portfolio in order to mitigate the risk associated with various loan purpose types. In general, buying a home represents less of a risk than refinancing an existing mortgage. Refinance transactions in which the borrower takes out little or no equity (cash) represents less risk than ……

Biden’s executive order will extend foreclosure moratorium

President Biden plans to sign 17 executive orders his first day in office, including an extension of the eviction and foreclosure moratorium.

The post Biden’s executive order will extend foreclosure moratorium appeared first on HousingWire.

Coronavirus Mortgage Relief: What Homeowners Need to Know

The Coronavirus Aid, Relief and Economic Security Act—also known as the CARES Act—is a $2 trillion stimulus package passed by the federal government. The goal of the CARES Act is to provide relief for individuals and businesses struggling with the financial fallout of the COVID-19 pandemic and resulting shutdowns. One of the components of the… Read More

The post Coronavirus Mortgage Relief: What Homeowners Need to Know appeared first on Credit.com.

6 Steps to Buying a Preforeclosure Property

Everyone knows you can buy a foreclosed home below market value, but what about a preforeclosed home? This article explains what a foreclosure is, how the process works, and tips for buying one. Check Rates: Check Today’s Rates What is Preforeclosure? Preforeclosure refers to the status of a home. This means the owner(s) are falling […]

The post 6 Steps to Buying a Preforeclosure Property appeared first on The Lenders Network.

How to Buy a HUD Home (And When You Should)

If you’ve been actively house hunting for a while, chances are you’ve come across a real estate listing that’s been referred to as a HUD home. But what does that actually mean? Is this type…

The post How to Buy a HUD Home (And When You Should) appeared first on Crediful.

Home Equity Loan vs Line of Credit

If you need a quick cash injection and own sizeable equity in your home, equity loans can help. Home equity loans and home equity lines of credit are low-interest rate loans taken out against your home. Also known as second mortgages, they allow homeowners to tap into their equity, and offer a plethora of benefits, as well as a few downsides. But […]

Home Equity Loan vs Line of Credit is a post from Pocket Your Dollars.