Comparing multiple mortgage offers for a home loan is a challenge you will face when refinancing your home. If you are looking at multiple offers for the lowest mortgage rate, Here is what you need to know: Obtain a Loan Estimate (LE).It’s a three page document required by law to be sent to you within 3 days of your application date. This document will outline your interest rate, payment and all fees associated with the acquisition of the loan.
Mortgage terms : Term – The period of time you are under contract with a specific lender at the interest rate that they are providing for that time period. Amortization – A term used to describe the period of time over which the entire mortgage is to be paid assuming regular payments. Usually 25 or 30 years. Debt service ratio – The percentage of the borrower’s income used for monthly payments of principal, interest, taxes, heating costs, condo fees (if applicable) and debts. GDS is gross debt service – how much you spend on Principal, Interest, Taxes and Heating. TDS is total debt service – GDS plus all other debt payment obligations. Default – A homeowner is ‘in default’ when he or she breaks the terms of a mortgage agreement, usually by not making required mortgage payments or by not making payments on time. Down payment – The money that you pay up-front for a house. Down payments typically range from 5%-20% of the total value of the home, but can be anything above 5%, if you qualify. Early Discharge Penalty – A penalty you may pay your lending institution for breaking the mortgage contract early. This is usually 3 months interest or the Interest Rate Differential (IRD), whichever is larger. See below for IRD.
Taking care of your financial situation is very important. Here are several tips related to financial terms. Subprime credit cards are one of the worst credit card products. These credit cards are geared toward applicants who have a bad credit history and these cards typically have high interest rates and fees. While approval is often quick, even for those with bad credit, the terms are often confusing. The Federal government has made rules regarding the amount of fees subprime credit card issuers can charge, but the card issuers often look for loopholes and ways to skirt these rules. Despite the unattractiveness of subprime credit cards, some consumers continue to apply for the cards because they cannot get credit elsewhere. This is a situation where you have to proceed at your own risk.
Obtaining a Payday Loan: Payday loan providers are typically small credit merchants with physical locations that allow onsite credit applications and approval. Some payday loan services may also be available through online lenders. To complete a payday loan application, a borrower must provide paystubs from their employer showing their current levels of income. Payday lenders often base their loan principal on a percentage of the borrower’s predicted short-term income. Many also use a borrower’s wages as collateral. Other factors influencing the loan terms include a borrower’s credit score and credit history, which is obtained from a hard credit pull at the time of application. More financial calculators at Home loan rates.
Terms: A working capital loan is one taken to finance the everyday operations of a company. Organizations in industries that have high seasonality or cyclical sales cycles often rely on this type of loan to help tide them over during periods of reduced business activity.
Guarantee : A guarantee is a non-cancellable indemnity bond, backed by an insurer. It offers investors security that an investment will be repaid. A limited guarantee is when the amount the guarantor is responsible for is limited to a set sum or time frame. A non limited guarantee is when the guarantor is obligated to repay all amounts due. More financial info on Mortgage refinance.
Cash on Hand, Money in the Bank: Another thing most news reports look at is how companies manage their money – specifically, how much they have in free cash flow, total debt, and what assets they have available in cash equivalents, such as short-term government bonds that they can sell to settle debts. In Hemlock Inc.’s announcement, free cash flow is increasing, meaning that after all expenses have been laid out in order to maintain the business’ continuing operations, the amount of cash it has on hand is growing. On Hemlock’s balance sheet, the company shows cash and cash equivalents of $128 million, which can be converted into cash if required, especially in the event that their total debt increases and/or income takes a hit.
Mortgage broker – A company or individual that finds mortgage financing for individuals and companies whether for purchase, refinance, lender switches, etc. A broker does not actually lend money but seeks out a lender and arranges the mortgage terms. More on Today’s mortgage rates. Equity – The difference between the market value of a property and the amount owed on the property. This difference is the amount a homeowner actually owns outright.