Fumbles, oversights, and omissions: bank ARM calculations

Article Abstract:

Real estate lenders often make mistakes in adjusting the interest rates of adjustable rate mortgages (ARMs), according to recent evidence, which also shows that the errors often arise from correctable and common causes. Lenders are exposed to liabilities when such mistakes favor them, while the mistakes lead to losses when they favor the borrower. Article explores how such errors can be minimized.

Mortgage and Nonmortgage Loan Brokers, Consumer Mortgage Loans

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The full cost of a home mortgage loan

Article Abstract:

Real estate agents can help borrowers in search of home loans compare the annual percentage rate (APR) between competing institutions by including costs usually not considered in comparisons. These costs include lost interest earnings on escrow accounts and prepayment penalties. A simple formula is offered for including these costs in the APR calculation.

Real estate agents and managers, Evaluation, Finance, Practice, Real estate agents, Real estate agents and brokers, House buying, Home buying, Bank loans

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