Delaware Mortgage Loans

Adjustable rate Mortgages (ARMs) are loans with interest rates that change.  ARMs usually start with lower monthly payments than fixed rate mortgages.  With a fixed rate mortgage, the interest rate stays the same during the life of the loan.  With an ARM, the interest rate changes periodically, usually in relation to an index, and payments may […]

Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They’ve reportedly wiped out 5 hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren’t enough, subprime mortgages are […]

On August 31, President Bush annouced that HUD will help families avoid Foreclosure by providing a brand new FHA loan called the FHA Secured loan.  This loan will directly impact Delaware Home Owners facing foreclosure.  Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments […]

In years past a borrower would visit their local Savings & Loan to obtain a mortgage. The Loan Officer at the bank would approve the mortgage and fund it with cash reserves from the vault. This system worked well until the bank ran out of money to lend. Borrowers came to the S&L looking for […]

HERE’S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!
 
First:  make sure you are working with an experienced, professional loan officer.  The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along […]

Fully Indexed Rate
The fully indexed rate is the combination of the index we have chosen plus the fixed margin the lender places on the loan. This is often different than the initial rate offered, or the ³start rate². The fully indexed rate will only fluctuate at the adjustment period of your ARM, and may be […]

Margins
On an adjustable rate loan, the amount a lender adds to the index in order to determine the mortgage interest rate at each adjustment period. For example, if the index is at 5.0, and the margin is 1.5, the fully indexed interest rate is 6.5%. The margin is normally fixed for the life of the […]

Negative Amortization
Amortization is the repayment of a loan by making systematic payments over a set time period which are applied to the combined balance of the principal and interest for that loan amount. Therefore, negative amortization occurs when the payment is less than the required interest that has accrued on the loan for that month.
Summary:
Few […]

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 improvements increase the […]

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 Rate will […]