Interest Only Interest is what a borrower pays a lender over and above the original amount of the loan, as compensation for the use of the money over a specified period of time. An interest only loan requires a payment that pays the interest that has accrued on the loan for the current month, but… Continue Reading
Monthly Archives: July 2007
First Time Home Buyer Seminar – August 18th from 10:00AM till 12:00PM
There will be a First Time Home Buyer Seminar on Saturday August 18th from 10:00 AM to 12:00 PM at the Primary Residential Mortgage’s office in New Castle, Delaware. The Seminar is FREE!!! Come learn what it takes to buy a home in Delaware. First time home buyer programs will be covered. Program will also cover how to improve… Continue Reading
Delaware Home Improvements Turn Average Delaware Homes into Dreams Come True
If you’re thinking about taking out a home improvement loan in Delaware, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Here are some factors to take into consideration. · How long have you been in the home? · Will the… Continue Reading
Fed Funds Rate – What is it?
Fed Funds Rate The Fed Funds Rate is the interest rate that Banks and other depository institutions charge each other when they lend money to each other, usually on an overnight basis. Federal law requires banks to keep a certain percentage of their customer’s money on “reserve” or right at hand, where the banks earn… Continue Reading
FHA Loans – Mortgage Insurance
FHA does not fund home loans directly; rather, it provides a guarantee to the mortgage lender against default. There are two separate fees that HUD collects to provide a level of guarantee coverage to the lender: Up-front mortgage insurance premiums (UFMIP). Monthly renewal mortgage insurance (Monthly MI). The up-front mortgage insurance premium, if required, will… Continue Reading
Monthly Housing Report for June 2007 Released
Existing Home Sales for June 2007 were reported at 5.75 Million units, which was less than the 5.90 Million expected. But there was some good news within the report – the median home sales price increased 0.3% to $230,100 representing the first year over year price increase in 11 months. Additionally, the monthly sales inventory… Continue Reading
Federal Discount Rate – What is it?
Federal Discount Rate The Federal Discount Rate is the interest rate charged by a Federal Reserve Bank to its eligible member banks and financial institutions when they need to borrow funds directly from the Federal Reserve. Banks whose reserves fall below the reserve requirement set by the Federal Reserve’s Board of Governors use that money… Continue Reading
Prime Rate – What is it?
Prime Wall Street Journal (WSJ) Prime Rate This is a consensus measure of the Prime Rate, and is published in the Wall Street Journal. The Wall Street Journal surveys the large banks and then publishes their consensus “Prime Rate”, or the rate offered to clients who are considered eligible for “prime” financing terms. The Prime… Continue Reading
Delaware Home Buyers Face Decisions that Affect Their Long-Term Financial Picture
Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.… Continue Reading
COSI Index & CODI Index – What are they?
COSI Cost of Savings Index (COSI) A bank receives money from consumers in the form of deposits, and then lends money as home mortgages or other loans. The interest rates in effect on these deposits are the basis for the COSI index. It is not based on actual interest paid, but rather the weighted annualized… Continue Reading