Adjustable Rate Mortgage (ARM)
A variable or flexible rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. To limit the borrower¹s risk, the ARM may have a payment or rate cap.
An amortization schedule is a complete table detailing the amount of principal and the amount of interest that comprise each payment in order for the loan to be paid off by the end of its term. Amortization is the process of paying off a debt over time through regular payments.
A proceeding in a federal court in which a debtor (who owes more than his/her assets or cash flow) is relieved from the payment of debts. This can affect the borrower’s personal liability or the mortgage debt but not the lien of a mortgage.
Where the buyer pays additional discount points in return…
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