A Home Mortgage Guide
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Welcome to A Home Mortgage Guide. We are hosting this site to give people a place on the Internet to share information about mortgages and home buying / selling. Mortgages have been in the news quite a bit lately. There are many strong opinions on the topic. It is our hope that this forum will provide people the opportunity to share ideas and read other people's thoughts as they seek answers to their mortgage questions. This is an open article directory, so we welcome your input. However, it needs to be related to mortgages, refinancing, home equity loans, or other home buying and selling issues to be accepted. Thanks again for stopping by. |
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Adjustable mortgages Find a mortgage | How to price a mortgage Mortgage basics | Other mortgage topics Refinancing your mortgage |
Latest Articles
1: Exotic Loan Programs Always Fail
Over the last 60 years since World War II ended, a number of experimental loan programs have been attempted. These include interest-only loans, adjustable rate loans, and negative amortization loans among others. It is this group of loans that has consistently failed in the past for one simple reason: if payments can adjust higher, people will default. High default rates doom mortgage programs because these high default rates will eventually cause large default losses for the holders of these loans.
2: Real Estate Speculators Usually Fail
Despite the huge price spike in the final two years of the Great Housing Bubble caused by wild speculation, most speculators will lose a great deal of money. They will buy when prices are high, and they will sell when prices are low. The causes are rooted in basic human emotions that work against making the proper decisions to profit in a speculative market.
3: Get free prints paper sizes - 4XD 5XD and more
In the film days photo paper sizes were designed to fit the aspect ratio of the film negative frames. Digital camera sensors use different aspect ratios and as such when printing digital photos on traditional paper the photos have to be either cropped or shrunk.
4: Adjustable Rate Mortgage Payment Recast - What is It?
Interest-only and negative amortization payments cannot go on forever. At some point, the loan balance must be paid in full. For all adjustable rate mortgages, there is a mandatory recast after a fixed period of time where the loan reverts to a conventionally amortizing loan to be paid over the remaining portion of a 30 year term.
5: Bring Back Paternalism in the Mortgage Market
As a society, we have created a system that strongly encourages a borrow-and-spend mentality. Saving in all its forms are punished while borrowing is strongly subsidized and encouraged. The credit orgy of the 00s saw this system taken to its ultimate extreme. The result was a vicious credit crunch, a collapse in asset values, and an economic downturn second in severity only to the Great Depression. Obviously, something needs to change. A little paternalism in the mortgage market is one of a number of necessary regulatory reforms.