Homeowners Leaving 15-Year Mortgages For 30-Year Loans – Today's Mortgage and Real Estate News | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about Mortgage.
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Homeowners Leaving 15-Year Mortgages For 30-Year Loans – Today's Mortgage and Real Estate News | Jabar Post Indonesia
A mortgage loan or, simply, mortgage (/ˈmɔːrɡɪdʒ/) is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning “death pledge” and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as “a borrower giving consideration in the form of a collateral for a benefit (loan)”.
Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants, or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society, depending on the country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender’s rights over the secured property take priority over the borrower’s other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.
In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called “securitization”, which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.
https://growella.com/mortgage/ ► Today’s mortgage and real estate news: (1) A Freddie Mac report shows that homeowners are refinancing away from their 15-year fixed-rate mortgages and choosing 30-year fixed-rate loans at the fastest pace in a decade; (2) Today’s mortgage rates, plus a look at the 5-day trend in interest rates; (3) At the start of the year, mortgage experts made predictions about the future of U.S. mortgage rates — and many of those predictions were wrong.
FROM THIS EPISODE
According to Freddie Mac’s most recent Refinance Report, U.S. homeowners are refinancing out of their fifteen-year loans and into thirty-year ones at a faster pace right now than during any other time this decade. Through the first three months of the year, Freddie reports thirty seven percent of homeowners refinancing a 15-year mortgage elected to replace their 15-year loan with a thirty-year fixed-rate loan instead. Now, there are benefits in moves like this — monthly payments are lower by about half and cash flow frees up — that can be good. But, there are long-term effects, too. Like, when you pay interest for an additional decade-and-a-half, a typically-sized loan will require an additional $126,000 to pay the loan back. Refinancing is a personal choice and there’s no best path that fits everyone.
Jump to the following:
(00:13) Which is better: 15-year mortgage or 30-year mortgage?
(01:36) Today’s mortgage rates and the 5-day interest rate trend
(01:58) Mortgage Rate Predictions for 2018 and 2019
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