Glossary of Lending Terms

by Andrew on November 9, 2008

Adjustable-Rate Mortgage (ARM):

The interest rates charged on these mortgages are tied to an interest-rate index. If the interest rate index rises, the mortgage interest rate and the monthly payment go up. If the interest rate index falls, the mortgage interest rate and monthly payment go down.

Adjustable-Rate Mortgage (ARM) Disclosure:

This document describes the features of the adjustable-rate mortgage (ARM) program you are considering. It includes information about how your interest rates and payments are determined, how your interest rate can change, and how your monthly payment can change. The lender is required to provide this document to you when you hand in your application or before you pay a nonrefundable fee (whichever is earlier).

Amortization:

This term refers to the gradual paying down of a loan. For example, traditional mortgage terms require that each payment include, in addition to interest, part of the loan principal. That way, you continually lessen the amount you owe and extinguish the debt within a set period of time. [click to continue…]

{ 0 comments }

Disclosure: What Sellers Need to Know

by Andrew on November 9, 2008

States are cracking down on sellers’ obligation to disclose known material facts about properties for sale-especially conditions not readily apparent, such as a cracked foundation. A material fact is anything that could affect the sale price or influence a buyer’s decision to purchase a home.

The major cause of post-sale disputes and lawsuits involve defects and disclosure. Most disputes can be avoided if proper disclosures are made.

Learn the Law

The statutes governing seller disclosure obligations vary:

State Laws

Most states require some form of seller disclosure. The form of disclosure also varies: Some states require a seller to complete a questionnaire about their property’s condition; in other states, disclosures can be made verbally. In some states, seller disclosures are voluntary. The only sellers excluded from disclosure laws are banks and mortgage companies with foreclosure properties. [click to continue…]

{ 0 comments }

Buying a Foreclosed Home

November 6, 2008

For Potential Home Buyers, Foreclosures Conjure Up Images of Bargain-basement Buys
But anyone considering buying a foreclosed home should forget about paying pennies on the dollar. In today’s hot real estate market, such deals are rare. “You can buy foreclosures for as cheap as 30 or 40 percent below market, but most foreclosures sell for 5 [...]

Read the full article →

Things You Need to Know Before You Sell Your Home

November 6, 2008

Am I required to use an attorney when selling my home? 
The level of involvement of the attorney in the sell of your home differs in each state. In some states, attorneys are very involved in the real estate transaction, including negotiating the contract, preparing documents and attending the closings. In other states, attorneys may get [...]

Read the full article →

True or False? Mortgage Lenders are Required to Give Me the Lowest Rate Available

November 4, 2008

False: Currently, there are no federal or state laws requiring a mortgage lender to give you the best rate available. These days, many lenders offer a variety of mortgage products, some carrying higher interest rates than others.
For example, many lenders offer reduced-documentation loans, also known as low-doc. or no-doc. loans. These loans require the borrower [...]

Read the full article →

When a HELOC Freezes Over

November 4, 2008

What to do if the bank tries to put your credit line on ice.
(Money Magazine) — When Diane Carr, 55, received word in February that her home-equity line of credit would be canceled, she was dumbfounded. The HELOC had been open since 2003, when she bought her Woodside, Calif. home. And Carr had never even [...]

Read the full article →

Tax Breaks for Real-estate Losses

October 31, 2008

Dear FSB: I own three rental properties, and am trying to hang on to them as the real estate market is bad here. Each month I have to pay out of pocket to cover the mortgage. Can I claim this loss on my taxes – and is there a limit?
Also, I have an S-Corp. Should [...]

Read the full article →

New Law Adds Tax Breaks for Real Estate

October 31, 2008

But watch out if you plan to make a vacation home your primary residence.
Lawmakers slipped plenty of new tax breaks for real estate into newly enacted legislation that is intended to provide relief from the current mortgage crisis. Taxwriters have approved tax cuts worth $12.4 billion over 10 years, as well as tax increases to [...]

Read the full article →

What Is Housing Discrimination?

October 31, 2008

Housing discrimination is a pervasive problem nationwide.
It is also severely under-reported. The U.S. Department of Housing and Urban Development (HUD) estimates that more than two million instances of housing discrimination occur each year, but less than one percent are reported.
Many people are unaware that they have been victims of housing discrimination. A 2002 study by [...]

Read the full article →

The Human Faces of Housing Discrimination

October 28, 2008

Housing discrimination affects people of all races, ethnicities, national origins and religions.
Women, people with disabilities and families with children may also face barriers to their fair housing rights. These stories portray the human faces of housing discrimination – a diverse group of people who confronted discrimination and fought back against it by sharing their stories [...]

Read the full article →

← Previous Entries