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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
Motley mortgage rates news:
Financial News
Last Call for Smart Homeowners - Motley Fool
Ever since the government bailout of Fannie Mae (NYSE: FNM ) and Freddie Mac (NYSE: FRE ) , the mortgage markets have seen wild swings in lending rates. So it's only fitting that to try to ease homebuyers' concerns about being able to get or ...

4 Reasons for Holiday Cheer - Motley Fool
I'm not talking about the downsizing of our investment portfolios per se. I'm talking about the news, the thinking about it, the gloom and doom. Bailouts. Bank collapses. Layoffs. Budget cuts. Disappointing stock performance from Akamai (Nasdaq: AKAM ...

Friday Outlook: An Enigmatic Bounce - Seekingalpha.com
The performance of the U.S. markets over the last week has been an enigma. But I feel that when it opens fully for business come Monday (after the extended holiday), it will indeed feel like the Pilgrims upon landing at Plymouth - grateful that they ...

Obama urges action on 'historic' economic crisis - Rocky Mountain News
President-elect Barack Obama introduces his economic team during a news conference in Chicago. From left are, Treasury Secretary-designate Timothy Geithner, Council of Economic Advisers Chair-designate Christina Romer, and National Economic Council ...

Tracker mortgage 'battle' starts - BBC News
Lloyds TSB, which also runs Cheltenham and Gloucester, is also increasing interest rates on tracker deals, blaming rate increases by competitors. Part of the deal when the government agreed to a £17bn investment in the bank to be formed by the ...

1-Star Stocks Doomed to Drop: Toll Brothers - MSNBC
Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury homebuilder Toll Brothers (NYSE: TOL) has received the dreaded one-star ranking. Our data has shown that one ...

Another Monster Quarter for Annaly Capital - Motley Fool
Need a good scare this Halloween? Annaly Capital 's (NYSE: NLY ) business model will make you shudder. It buys loads of mortgage-backed securities, leverages up to the gills, and pockets the difference. Sound familiar? It's not too different from the ...

The Death of Excessive Luxury - Motley Fool
For years, Americans have been mocked for their materialistic nature. A "gotta have it now" mentality has become the norm for consumers, and the middle class has literally disguised itself as part of the wealthy. At nearly every level of our society ...

Vultures in Miami's Real Estate Market - BusinessWeek
By Roben Farzad On the 79th Street Causeway that connects inner Miami to the city's beaches, a colony of giant turkey vultures sits ominously on a radio tower, staring at the downtown skyline. Migratory scavengers, they're drawn to tall buildings ...

Live: Banking on £50bn rescue plan - Guardian Unlimited
4.05pm: A final market update, the FTSE 100 is just shy of 250 points down. I'm wrapping up this blog now but for continuing news and reaction to today's decisions stay tuned to the site. As one of my colleagues said: "They've already pledged £500bn ...

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