If you are looking at multiple offers for the lowest mortgage rate, Here is what you need to know: Use the same rate for all lenders you are comparing.If you are comparing a 4.5% at Lender A, then make sure you are comparing at 4.5% and Lender B and C, then it’s a simple as using D minus J.and finding who is offering the best terms at that given rate.
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 valuable. Here are a few tips regarding finance terms. Student credit cards are those specifically designed for college students with the understanding that these young adults often have little or no credit history. A first-time credit card applicant would generally have an easier time getting approved for a student credit card than another type of credit card. Student credit cards may come with additional perks like rewards or a low-interest rate on balance transfers, but these aren’t the most important features for students looking for their first credit card. Students generally have to be enrolled at an accredited four-year university to be approved for a student credit card.
Payday Loan Interest: Payday lenders charge borrowers extremely high levels of interest that can range up to 500% in annual percentage yield (APR). Most states have usury laws that limit interest charges to less than approximately 35%; however, payday lenders fall under exemptions that allow for their high interest. Since these loans qualify for many state lending loopholes, borrowers should beware. Regulations on these loans are governed by the individual states, with some states even outlawing payday loans of any kind. In California, for example, a payday lender can charge a 14-day APR of 459% for a $100 loan. Finance charges on these loans are also a significant factor for borrowers as the fees can range up to approximately $18 per $100 of loan. More financial calculators at Interest only mortgage calculator.
Terms: Account : An arrangement with a financial institution for the debit and credit of funds; also the record or statement of these transactions. Businesses may use an account structure with another party to keep track of goods or services rendered and payments owing.
Cash flow: The cycle of money coming into and out of an account according to income/revenue and expenses. Negative cash flow is when expenses fall due before income/revenue is available and the account experiences a shortfall. Positive cash flow is when income/revenue outstrips expenses and there is excess cash in the cycle. More financial info on Reverse mortgage calculator.
Plans and Expectations: Even though Hemlock has seen numbers jump in various areas over the past quarter, the fact that it missed analysts’ estimates may not bode well for investor confidence. Earnings estimates are forecast expectations of earnings or revenue based on projections, models and research into the company’s operations and most frequently published by financial analysts. Some companies will provide “guidance” of management’s expectations for future results. Even if a company sees an increase in profitability, if the actual earnings fall below expected earnings, the market will see to it that the stock price adjusts to the new information (read: drop in value.) This is due to the fact that estimates are usually built into the current price of a stock. Thus, when investors hear how a company “missed expectations” in spite of higher revenues being reported, the market corrects the price of the stock accordingly.
Interest Rate Differential – A way lenders calculate the penalty for discharging a mortgage before the end of a closed mortgage contract. The difference between the interest that the financial institution will make if you continued your mortgage to the end of the contract and what they will make by loaning it to someone else at the current interest rate. More on Home equity line of credit. High ratio mortgage – A mortgage where the borrower is contributing less than 20% of the value of the property as the down payment. The borrower may have to pay a mortgage default insurance premium such as CMHC insurance, usually tacked onto the mortgage amount.