Home Affordable Refinance Program – (HARP)

Home Affordable Refinance is part of the Making Home Affordable Program. Fannie Mae is offering refinances of existing Fannie Mae loans that are serviced by lenders and banks. The goal is to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices. A HARP program will enable borrowers to reduce their monthly principal and interest payment or moving them from a risky loan structure such as interest-only or short-term adjustable rate mortgage to a more stable...

Home Equity

The difference between the current market value of a property and the total debt obligations against the property. On a new mortgage loan (purchase), the down payment represents the home equity in the property.

Home Equity Loan

A home equity loan is based on the equity of the secured property. The equity is determined on the difference of the appraised market value of the property minus the balance of all secured mortgages on the property. The home equity loan is typically used for home improvements, debt consolidation on credit cards, cash for personal reasons, or to pay off other high monthly debts into one low monthly payment. The interest paid on the loan is usually tax-deductible but should consult with your tax advisor for a definite...

HUD

The Department of Housing and Urban Development – A governmental entity responsible for the implementation and administration of housing and urban development programs.

Interest Only ARM

An interest only ARM only requires monthly interest payments. Since you are not paying off the principal each month, the monthly payment is typically lower because it will cover only the interest portion of the loan. An interest only ARM will often have a period where the interest rate is fixed, and then it is adjusted according to the program. The rate of the interest only ARM will vary by...

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