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Adjustable rate mortgage or ARM - A mortgage where the interest rate adjusts relative to a specified index + margin. E.g. COFI, LIBOR etc.; Hybrid ARM - An adjustable rate mortgage where the initial 'start' rate is fixed for some portion of time (3,5,7, or 10 years) thereafter the interest rate adjusts (yearly or bi-annually) based on the sum of a specified index + margin.
MBS – Mortgage-backed security; mfg. – Manufacturing; MGMT – Management; MIC – Market Identifier Code; MiFID – Markets in Financial Instruments Directive; MILE – Maximum impact, little effort [10] MoM – Month on Month / Month over Month; MOQ – Minimum Order Quantity; MOU – Memorandum of understanding; MPC – marginal ...
Adverse credit mortgage – mortgages aimed at borrowers with credit problems, e.g. county court judgements. Self-certified mortgage – a mortgage where the lender does not seek proof of income to demonstrate affordability, but instead relies on a statement of earnings as "certified" by the borrower(s).
There’s yet another acronym: MIP, which stands for mortgage insurance premium and applies to FHA loans. Like PMI, MIP protects the lender, not you. However, unlike PMI, you’ll pay MIP for the ...
What is private mortgage insurance? Private mortgage insurance (PMI) is a form of insurance taken out by the lender but typically paid for by you, the borrower, when your loan-to-value (LTV) ratio ...
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. [1] The loan may be offered at the lender's standard variable rate/base rate. There may be a direct ...
A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan.
The term was popularized by Charles R. Morris in his 2008 book The Two Trillion Dollar Meltdown, though the acronym had been publicly used by some subprime mortgage lenders for some years. [5] They were especially prominent during the United States housing bubble circa 2003-2007 but have gained wider notoriety due to the subprime mortgage ...