A reverse mortgage is a special type of insured loan that allows the elderly (more than 62 years age) to borrow against the equity in their home. It helps them to withdraw tax free cash from their homes, while retaining the right to live there till they want, without any monthly interest or principal payments. […]Continue Reading... Comments Off on Reverse Mortgage
An ARM (Adjustable Rate Mortgage) is a particular type of mortgage scheme in which the interest rates are flexible or adjustable or variable in nature. It means that the interest rates change based on any particular index (example LIBOR) and it is more or less adjusted in a way to always benefit the lender irrespective […]Continue Reading... Comments Off on ARM – Adjustable Rate Mortgage
A bridge loan (also known as “Swing loan” or “Caveat loan”) mortgage is an interest only loan, secured on your current property, to allow the proceeds to be used for buying new property, before selling the existing property. A bridge loan is. It is a short-term loan typically taken out for a timeframe of 1 […]Continue Reading... Comments Off on Bridge Loan
Long term effect and recession After incurring huge losses in the sub prime mortgage lending section, Government has bailed out AIG and the bigUSbanks with the tax payer’s money. Merrill Lynch was sold to Bank of America at throw away price of USD 50 million and Lehman Brothers’ collapse wiping out whopping USD 700 billion […]Continue Reading... No Comments.
Start of the Crisis?? Everything was going on very smooth and everyone in the system was making huge amount of money. But suddenly in 2007, the housing market showed the sign of cooling down in price due to bubble burst and the continuous price increase halted. With the interest rate got increased because of high […]Continue Reading... No Comments.