Real Estate Terms
Real Estate Term : Negative Amortization Home Loan
January 14, 2008 by MikeRosen · Leave a Comment
(Pronounced: NEGH-ah-tive am-ohr-tih-ZAY-shun)
Negative amortization is the process by which a loan’s principal balance increases on a month-over-month basis.
This is in contrast to a “typical” amortization schedule in which the principal balance decreases.
Negative amortization is an optional feature on some home loans.
These mortgages are usually referred to by the brand names “Option ARM”, “Pick-a-Payment”, or “Payment [...]
What Does It Mean To “Escrow” Taxes And Insurance?
December 5, 2007 by MikeRosen · Leave a Comment
As a homeowner, your financial obligations extend beyond your monthly mortgage payment. Periodically, you are also required to pay real estate taxes and homeowner’s insurance premiums.
Each month, you pay your mortgage payment to a company called a “mortgage servicer” (because they “service” your mortgage each month).
In addition to the risk of not getting paid by [...]
Simple Real Estate Definitions: Adjustable Rate Mortgage
October 24, 2007 by MikeRosen · Leave a Comment
Adjustable Rate Mortgages are mortgages for which the interest rate is subject to change over time according to pre-defined rules.
ARM is a common acronym for Adjustable Rate Mortgage and every ARM has similar features:
An initial fixed period during which the mortgage rate doesn’t change
An initial interest rate that is charged during the initial fixed period
An [...]
