home loan: Annual Percentage Rate: What is the Real Cost of Financing
- 07/30/08 08:47 AM
Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker, banker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon. The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form … (1 comments)
home loan: Avoiding Foreclosure: Helping Clients Keep Their Home
- 07/30/08 06:54 AM
Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could've been avoided with some outside help. You are in a unique position to advise your clients in financial matters. If you know that a client is on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs. Finding a new home. Don't let your clients believe that it will be better to let the foreclosure happen, because after they lose their … (3 comments)
home loan: Mortgage Interest Rate Myths
- 07/29/08 06:57 AM
This may come as a shock to many borrowers, but it's absolutely true. Mortgage interest rates are not set by the Federal Reserve and, contrary to popular belief, mortgage rates are not directly tied to the yields of US Treasury bills, bonds, or notes - including the 10-year Treasury Note. That's right. Despite what you might hear in the media, mortgage interest rates are actually set by lending institutions, and are based solely on the performance of mortgage-backed securities. For years now, the media and inexperienced loan officers everywhere have suggested that the 10-year Treasury Note, a government-backed security, is directly … (3 comments)
Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker, banker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.
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