Credit and Lending

How Do Balloon Loans Work?

How Do Balloon Loans Work?

A balloon loan allows an individual to purchase property, such as a home or car, on a monthly payment plan that features one large lump-sum payment at the end of a fairly short ...

Do Banks Accept a Deed in Lieu of Foreclosures?

Do Banks Accept a Deed in Lieu of Foreclosures?

A deed in lieu of foreclosure is an agreement that allows a struggling homeowner to voluntarily transfer ownership rights back to the bank. The deed in lieu allows you to avoid ...

How to Budget After Bankruptcy

How to Budget After Bankruptcy

People emerging from bankruptcy must budget carefully to avoid developing new financial problems. That defeats the primary purposes of bankruptcy, including helping people ...

How to Buy Non-Performing Bank Notes

How to Buy Non-Performing Bank Notes

Non-performing bank notes are debts held by banks that represent loans such as mortgages. While other non-performing investments may result in a financial loss, non-performing ...

How to Calculate Annualized Net Charge Off

How to Calculate Annualized Net Charge Off

Banks and financial institutions that make loans always expect a proportion of those loans to fail. The borrower will default and the bank will not collect the full amount owed. ...

How to Calculate Equity in Your Home to Purchase Another House

How to Calculate Equity in Your Home to Purchase Another House

Whether you are selling your home or plan to apply for a second mortgage to finance the purchase of another home, you must know the amount of equity you have available in your ...

How to Calculate the Equity Required to Refinance

How to Calculate the Equity Required to Refinance

Refinancing your mortgage when interest rates fall can help you reduce your monthly mortgage payments, and lock in a low rate for the rest of the mortgage. However, if you did not ...

How to Calculate a Payable Mortgage Note

How to Calculate a Payable Mortgage Note

A mortgage note a contract that guarantees a loan to purchase a house. It includes details regarding the property, amount borrowed, interest rate, the monthly payment, and number ...

How to Calculate Payment Shock

How to Calculate Payment Shock

Payment shock occurs when a monthly payment obligation increases substantially, usually as a result of a loan adjustment. Most commonly, payment shock occurs with adjustable-rate ...

Can I Assume an FHA Mortgage Investment?

Can I Assume an FHA Mortgage Investment?

The Federal Housing Administration (FHA) insures home lenders against potential losses on millions of mortgage loans. FHA loan products often have less stringent borrower ...

Can You Borrow Against a CD Investment?

Can You Borrow Against a CD Investment?

When you open a certificate of deposit, you agree to keep a sum of money in the account for a period of time and your bank agrees to pay you interest on the CD. You assume the ...

Can You Borrow Against a Negative Home Equity?

Can You Borrow Against a Negative Home Equity?

You need money to help pay for your daughter's college tuition. Or maybe you need a large dose of cash to cover the costs of a long-planned vacation or to pay off your ...

Can I Get an Investment House With My Primary House?

Can I Get an Investment House With My Primary House?

Buying an investment property when you already own a home can help or hurt you, depending on your financial situation. You can borrow money from your primary residence to use as a ...

Can I Get a Mortgage After Two Years of a Short Sale?

Can I Get a Mortgage After Two Years of a Short Sale?

Obtaining a mortgage after a short sale can be challenging. When you sell your home for less than the amount that you owe on it, your lender takes a loss on the difference. Now, ...

What Is a Cash Out vs. A Straight Refinance?

What Is a Cash Out vs. A Straight Refinance?

When you refinance your mortgage, you can complete a cash-out refinance or a straight refinance. Both processes result in a new mortgage. However, a cash-out refinance allows you ...

Does Deferring a Loan Payment Affect Your Credit Score?

Does Deferring a Loan Payment Affect Your Credit Score?

If you are struggling to keep up with payments on a loan, you have a few options. One option is to simply stop paying, which usually results in dire consequences. A better option ...

What Is the Difference Between Assuming a Mortgage and Taking the Property Subject to a Mortgage?

What Is the Difference Between Assuming a Mortgage and Taking the Property Subject to a Mortgage?

Unless a buyer has the cash to pay for a real estate purchase, he needs to secure financing to purchase the property. Although the phrases "taking the property subject to a ...