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Mortgage Professor about balloon loans: | |||||||||||||||||||||||
40-Year Loan or Modify the 30 and 15?
November 8, 2004 Is the 40-Year Mortgage a Useful Instrument? I don't think so. While 40-year mortgages increase affordability by reducing the mortgage payment, the reduction is very modest. Furthermore, a small tweaking in the 30-year mortgage would accomplish the same thing, ... more... Is a Balloon Loan Better Than an Adjustable Rate Mortgage? May 4, 1998 "I have been offered a 5-year balloon loan at 6.5% and zero points, and a 5-year ARM [adjustable rate mortgage] at 6.125% and zero points. Is there any reason why I should not choose the ARM?" No reason, provided you confidently expect to be out of ... more... |
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balloon loans related definitions |
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Secondary Mortgage Market
Secondary Mortgage Market The place where primary mortgage lenders sell the mortgages to investors like Fannie Mae or Freddie Mac in order to obtain more funds for originating more new loans. Secondary mortgage market provides liquidity for the lenders. Government-sponsored ... more... Negative Amortization Negative Amortization Negative amortization, also known as Neg Amortization, NegAm, NegAmMort, occurs when borrower pays back less than the full amount of interest owed to the lender each month. The difference betweeen full interest and paid amount is added to the total amount ... more... |
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More about balloon loans An Overview of Getting a Homeowner Loan Tucson Mortgage Refinance How to Mortgage Comparison Shop Real Estate: Will the Mortgage Lending Market Hit the Wall? Online Amortization Schedules A Brief Look At Various Types of Loans Available A Guide to Buying a New Home Home Buying Process: 15 Tips for First Time Home Buyers Online Home Equity Loans Home Equity Loan and Home Equity Loans Bridging Finance Basics
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