Mortgage forbearance postpones foreclosure and allows borrowers to defer payments for a limited time. It does not cancel past due payments or interest accrual. It benefits both parties and is not a long-term solution. It is not suitable for everyone and is generally reserved for unforeseen and temporary hardship. Buying a home usually involves a […]
The bad credit mortgage approval process is similar to that for good credit, but may require a larger down payment and participation in housing counseling. Pre-approval is recommended, and special mortgage programs may be available. An appraisal is required before finalizing the loan. The bad credit mortgage approval process is not necessarily much different than […]
The secondary mortgage market involves buying and selling mortgage loans and servicing rights, often bundled into securities. It injects capital into lenders and can improve chances of mortgage approval. Investors can earn returns, but there is some risk involved. A secondary mortgage market is the market where mortgage loans and associated servicing rights are bought […]
A mortgage is a loan for a property, with the lender retaining ownership until the buyer pays off the full amount borrowed plus interest and fees. The right loan depends on the buyer’s financial situation and long-term plans. Hidden fees can make the cheapest mortgage ad not the most attractive. PMI is required for buyers […]
The mortgage application process involves providing financial information, a credit report, down payment, property appraisal, and title search. After completing all steps, the property will be closed and the borrower may take possession of the residence. Providing financial information to a lender is often the first step in the mortgage application process. The institution will […]
A mortgage is when a lender is given an interest in real property as security on a loan. Interest is charged on the amount borrowed, and current rates vary based on loan terms and creditworthiness. High credit scores can result in rates in the 5% range, while low scores can result in rates between 9% […]
The Mortgage Forgiveness Debt Relief Act of 2007 temporarily suspended income tax on forgiven debt or refinancing of primary residences up to $2 million, to ease the burden on those struggling with debt due to the financial crisis. It only covers certain types of debt and was extended through 2012. The Mortgage Forgiveness Debt Relief […]
Islamic mortgages comply with Islamic law and eliminate interest, allowing devout Muslims to buy homes without compromising their religious values. Different approaches include murabahah, musharaka, and ijarah, and some companies have their products reviewed by Islamic scholars. An Islamic mortgage is a home loan that complies with Islamic law, allowing devout Muslims to borrow money […]
Mortgage protection insurance comes in different formats, including private mortgage insurance for lenders, and mortgage protection plans for homeowners in case of death, disability, or job loss. Choosing the right plan depends on the borrower’s needs and situation. Mortgage protection insurance comes in a variety of formats. Each one is designed to provide coverage in […]
Silent second mortgages are mortgages taken out without the knowledge of the first mortgage holder, often used to finance a down payment. While legal, they can be used fraudulently and violate the original mortgage contract, putting both lenders at risk in case of default. Silent second mortgages are mortgages taken out on properties that already […]
Secondary market mortgages are sold by originators to investors, allowing for a steady flow of resources to write additional mortgages. Fannie Mae and Freddie Mac lend many secondary market home loans in the US, and investors can earn consistent returns with relatively low risk through mortgage-backed securities. A secondary market mortgage is a mortgage that […]
Predatory mortgage service involves unethical and illegal practices by mortgage servicers, including changing interest rates and terms without notification. Borrowers in vulnerable positions are often targeted, and may not understand their rights. Consumers should work with licensed professionals and report any suspicious activity to legal aid attorneys or government regulators. Predatory mortgage service is a […]
Fannie Mae is a government-backed mortgage lending company in the US that buys and underwrites banks’ existing mortgages to free up money for banks to continue lending. It was created in 1938 and split in two in 1968, with a third player, Freddie Mac, created in 1970. Both entities operate within strict lending parameters and […]
To report mortgage fraud, consumers can contact the FBI, FTC, lender oversight agencies, or state attorney general’s office. Each agency has a different process, but most accept reports online or over the phone with supporting documents. If you have been a victim of mortgage fraud, as a consumer you have several different avenues you can […]
A mortgage attendant handles all aspects of mortgage lending, from documentation to accepting payments. The job requires minimal experience and education. Duties include generating documents, checking compliance, processing payments, and answering customer questions. Successful attendants may be promoted to loan officers. A mortgage attendant works for a bank or other lending institution and handles all […]
A shared equity mortgage is when a friend or family member helps with a down payment in exchange for equity in the home, typically benefiting parents who help their children. The helper receives a percentage of the home’s resale value and gain in value, but there are risks if the house depreciates or the borrower […]
A mortgage affidavit is a statement made under penalty of perjury certifying certain conditions of a property. It is often required by title companies for underwriting title insurance policies. There are various types of mortgage affidavits, including antique and composite, and they must be signed and witnessed by a third party or notary public. False […]
A mortgage exemption is a tax break for homeowners, where the exemption amount is deducted from the total income reported on a tax return, reducing the total amount of tax owed. Qualification depends on criteria established by the tax agency and varies by jurisdiction. Homeowners must apply in advance and meet application deadlines to receive […]
A mortgage company specializes in providing and servicing mortgages for real estate, and may also offer home equity loans and lines of credit. They may act as agents for lenders or be subsidiaries of larger banking companies, and must comply with applicable lending standards and regulations. A mortgage company is a finance business that focuses […]
Mortgage brokers connect borrowers with lenders, offering loan products from multiple lenders. They do not lend money but help borrowers find the best loan deal and gather necessary documents. Brokers earn commissions from closing costs or loan points. Often people confuse mortgage brokers with lenders, but brokers offer the loan products of multiple lenders, while […]
