Advice Corner
Mortgage Basics - defines all the common Mortgage Terms you need to know about mortgage financing.
Anyone considering a mortgage should avoid these Common Mortgage Mistakes, from borrowing too much to not shopping for the best rates.
Getting approved for a mortgage can be a tricky. Here we layout the Mortgage Approval Process for obtaining a mortgage.
Because of the current rise in home foreclosures, Mortgage Foreclosure Scams are abound. Beware of Con Artists and foreclosure experts offering "too good to be true" offers.
If you are delinquent on your mortgage, these 8 tips for Avoiding Home Foreclosure may be of help to you.
Listed here are some interesting statistics about Foreclosure Causes. See if any applies to you.
Passed by Congress in July 2008, the HOPE for Homeowners (H4H) Mortgage Refinance Program is designed to help homeowners at risk of default and foreclosure refinance into more affordable, sustainable mortgage loans.
Financial Crisis: How Did We Get Here? attempts to explain the causes of the financial crisis facing the U.S. economy.
Facing home foreclosure? Listed here are some Foreclosure Counseling Resources that can provide you with help.
APR Calculator for Adjustable Rate Mortgages
The APR calculator computes the
Annual Percentage Rate (APR)
for your Adjustable Rate Mortgage (ARM). Knowing your APR (Annual Percentage Rate) can help you compare different Adjustable Rate Mortgages (ARMs) with different fees and terms.
APR Calculator for Adjustable Rate Mortgages - Definitions
This APR Mortgage Calculater for
Adjustable Rate Mortgage (ARM)
generates a fully amortizing mortgage table. The monthly mortgage payment is calculated to payoff the entire Adjustable Rate Mortgage (ARM) balance by the end of the term. The term for the Adjustable Rate Mortgage (ARM) is typically 30 years. At the end of the fixed interest rate period, the interest rate and payment adjust at the frequency specified in the Adjustable Rate Mortgage (ARM) agreement. A Fully Amortizing Adjustable Rate Mortgage (ARM) will also have a maximum rate, often referred to a as a cap, that it will not exceed.
The most common types of Fully Amortizing Adjustable Rate Mortgages (ARMs) are:
10/1 Adjustable Rate Mortgage (ARM)
7/1 Adjustable Rate Mortgage (ARM)
5/1 Adjustable Rate Mortgage (ARM)
3/1 Adjustable Rate Mortgage (ARM)
Mortgage amount - Original or expected balance for your Adjustable Rate Mortgage (ARM) loan.
Term in years - The number of years over which you will repay this loan. The most common Adjustable Rate Mortgage (ARM) terms are 15 years and 30 years.
Starting interest rate - Initial annual interest rate for this Adjustable Rate Mortgage (ARM).
Current index - The current interest rate of the index used to calculate the interest rate on this Adjustable Rate mortgage (ARM). The current index rate plus the margin on that rate produces the Fully Indexed Rate that is used to calculate the APR for this Adjustable Rate Mortgage (ARM).
Margin - The interest rate percentage above the index, or the 'margin', used to calculate the Fully Indexed Rate.
Starting monthly payment - Monthly principal and interest payment (PI) based on your beginning balance and starting interest rate.
Months before first adjustment - This is the number of months that the interest rate is fixed for the Adjustable Rate Mortgage (ARM). After this period, the interest rate will be subject to rate adjustments. If you enter zero in this field, we assume that the rate will begin making adjustments after initial period of time between adjustments has passed. If any number other than zero is entered, the first adjustment will take place at that time, and adjustments will happen at the frequency entered in the "months between adjustments" field.
Months between adjustments - The number of payment periods between potential adjustments to your interest rate. The most common is 12 months, which means your payment could change at most once per year.
Expected adjustment - The amount you believe that your Adjustable Rate Mortgage (ARM) interest rate will change. This amount will be added to or subtracted from your interest rate.
Interest rate cap - This is the highest interest rate allowed by your Adjustable Rate Mortgage (ARM). Your actual interest rate will not be adjusted above this rate.
Loan origination percent - The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.
Points paid - Total number of "points" purchased to reduce your Adjustable Rate Mortgage (ARM) interest rate. Each "point" costs 1% of your loan amount.
Other fees to include - Any other fees that should be included in the
APR calculation
. These fees can vary by lender, but at a minimum usually includes prepaid interest.
FORECLOSURE COUNSELING RESOURCES
If a homeowner is at risk of default and foreclosure, call or visit one of the many foreclosure counseling organizations available to help.
HOPE FOR HOMEOWNERS PROGRAM
In July 2008, the U.S. Congress created the HOPE for Homeowners (H4H) program, which is designed to help homeowners at risk of default and foreclosure on their mortgage refinance into more affordable mortgage loans. Find out more about the program and whether you qualify for a HOPE for Homeowners refinance mortgage.