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News about Mortgages:
Freddie Mac to Hank Paulson: $14 Billion Please… - US News and World ReportWith all this talk about TARP spending , it’s easy to forget about the billions of dollars the government is on the hook for after its decision to seize America’s troubled mortgage-finance behemoths. Freddie Mac --one half of the government ...
Mortgage losses mounting - Portland TribuneUncle Sam is bailing out Wall Street wheeler-dealers who invested in home loans, but there’s no relief in sight for the homeowners on Main Street. On Southeast Main east of 144th Avenue, stretching from outer Southeast Portland into Gresham, 14 ...
Why the Popular Explanation for the Financial Meltdown Is Wrong - Seekingalpha.comOver the last couple of days I've been harping on the fact that the popular explanation for why the financial world imploded -- that mortgage lenders started lending to anybody with a pulse -- is probably wrong. But in this post I'd like to highlight ...
Today's Mortgage Terms starting with I
Index: An index is usually a widely published market rate such as LIBOR, T-Bill or 11th District Cost of Funds (COFI). Lenders use these indices to set the interest rates charged on mortgage loans. For ARM, a predetermined margin is added to the index to calculate the interest rate adjustment.
Initial Rate: The rate charged for the first interval of an ARM loan.
Interest: Compensation in the form of money paid for the use of money.
Interest Rate Cap: Caps limit the range that the interest rate on an adjustable rate mortgage can change in an adjustment interval during the term of the loan.
View all Terms