Negative equity–what you have when you owe more on your home loan than the property is worth–is one of the defining features of the still-unfolding mortgage crisis. It’s a particularly nasty problem because it can lead to all sorts of unpleasant outcomes for the real estate market and the economy as a whole. Having negative [...]
Loan terms Articles
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Obama Mortgage
So far nearly 6,400 borrowers have dropped out after the loan modification was made permanent. Most of those borrowers likely defaulted on their modified loans, but a handful either refinanced or sold their homes. Credit ratings agency Fitch Ratings projects that about two-thirds of borrowers with permanent modifications under the Obama plan will default again [...]
Loan Terms
Loan Term – The length of time the borrower has to repay debt. Long Term Debt – Financing used to purchase or improve assets such as plant, facilities, large equipment and real estate. Maturity – A loan’s maturity is the life of the loan; that is, how long you have to repay the loan. It [...]