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Today's Mortgage Terms starting with P

Payment Cap:

A limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.

Point:

A point is equivalent to 1 percent of a mortgage loan. Lenders might charge "origination points" to cover expenses of processing a loan. Some borrowers might pay "discount points" to reduce the loan's interest rate.

Pre-Approval:

The process of calculating how much money a potential homebuyer could borrow.

Prepayment Penalty:

A lender's charge to the borrower for paying down the loan before the end of its term.

Pre-Qualification:

A non-binding process of calculating how much money a potential homebuyer can borrow before applying for a loan. Information submitted during pre-qualification is subject to verification at application.

Principal:

It is the amount of money borrowed or owed, excluding interest.

View all Terms
Valley refinance mortgage news:
Financial News
Low-rate mortgage plan generates hope - AZCentral.com
Home builders and industry analysts say a proposal to offer federally subsidized mortgage rates as low as 4.5 percent could go a long way toward reviving the Valley's decimated housing market. Mortgage rates have not been that low for more than a ...

Meltdown far from over, new mortgage crisis looms - Napa Valley Register
WASHINGTON - Black Friday's retail shoppers hunting for holiday bargains won't be enough to stave off what's likely to become the next economic crisis. Malls from Michigan to Georgia are entering foreclosure, commercial victims of the same events ...

Rate drop may spur home purchases - AZCentral.com
Valley residents waiting for the right time to buy a home or refinance their mortgage received a nice holiday gift from the federal government this week. The Federal Reserve's announcement Tuesday that it would spend $600 billion to buy up mortgage ...

Bernanke says more federal action is needed - East Valley Tribune
WASHINGTON - Federal Reserve Chairman Ben Bernanke called on the government Thursday to ramp up efforts to stem soaring home foreclosures, which are feeding into the country’s deep economic troubles. Although a flurry of actions have been taken to ...

Proposal could drop mortgage rates to 4.5 percent - San Jose Mercury News
Silicon Valley mortgage brokers could barely contain their enthusiasm as news leaked from Washington of a proposal to reignite the dormant housing market by driving down mortgage rates to the 4.5 percent range. The plan, which reportedly could be ...

Kashkari: Treasury considering mortgage rate plan - Buffalo News
The head of the government's financial system rescue effort said Thursday the Treasury Department is considering a program to encourage banks to make mortgage loans at low rates to help revive the battered housing market. Under the proposal being ...

Don't use credit card to pay mortgage - Sauk Valley Daily Gazette
DEAR DEBT ADVISER: I have a mortgage of $213,000 on a home valued at $276,000. My credit score is 713. I'm wondering if I would be better off to max out all my credit cards - the combined limit total is approximately $70,000 - and pay down my ...

Treasury weighs forcing down mortgage rates - Buffalo News
WASHINGTON — The Treasury Department is strongly considering a plan to intervene directly into the mortgage industry to dramatically push down rates and stimulate the moribund housing market, according to sources familiar with the proposal. Under ...

Mortgage rate drop sparks surge in consumer interest - San Jose Mercury News
Borrowers descended on the home loan industry Wednesday after the federal government's latest move to shore up the financial system sparked a sharp drop in interest rates. Valley brokers said business picked up immediately as rates dropped from 6 ...

Home Front: Foreclosed Sacramento property to sprout new houses - Sacramento Bee
At last, Home Front has found a more pleasant way to tell a foreclosure story. When Golden 1 Credit Union recently foreclosed on a 1-acre property near Rio Linda, it didn't just put it back on the market at a big loss. California's biggest credit ...

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