About refinanced second mortgages - refinanced_second_mortgages
Categories: MortgageUnited States housing bubbleHidden categories: All articles with unsourced statementsArticles with unsourced statements from December 2011Articles with unsourced statements from February 2008
"'In Bali, there are no mortgages available, so everyone who owns a house here has paid cash for it,' said Nils Wetterlind, managing director of Tropical Homes, a real estate developer and brokerage based on the island.
"[I]f he doth not pay, then the Land which is put in pledge upon condition for the payment of the money, is taken from him for ever, and so dead to him upon condition, &c.
A mortgage is a form of annuity (from the perspective of the lender), and the calculation of the periodic payments is based on the time value of money formulas.
A uniform second was produced by correcting the output of each atomic clock to mean sea level (the rotating geoid), lengthening the second by about 1×10−10.
AD 150) subdivided the day sexagesimally and also used a mean hour (1⁄24 day), simple fractions of an hour (1⁄4, 2⁄3, etc.
Adjustable rates transfer part of the interest rate risk from the lender to the borrower, and thus are widely used where fixed rate funding is difficult to obtain or prohibitively expensive.
All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk.
Although the terminology and precise forms will differ from country to country, the basic components tend to be similar:
An alternative approach is to explore the ultranarrow optical transitions of atoms held in an optical lattice.
And if he doth pay the money, then the pledge is dead as to the Tenant"
As another example, they specified that the mean synodic month was 29;31,50,8,20 days (four fractional sexagesimal positions), which was repeated by Hipparchus and Ptolemy sexagesimally, and is currently the mean synodic month of the Hebrew calendar, though restated as 29 days 12 hours 793 halakim (where 1 hour = 1080 halakim).
As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, typically 30 years.
Balloon payment mortgages have only partial amortization, meaning that amount of monthly payments due are calculated (amortized) over a certain term, but the outstanding principal balance is due at some point short of that term, and at the end of the term a balloon payment is due.
Before you read any further do not provide any lender with a credit card number until they have provided you with a Good Faith Estimate verifying it is truly a 0 cost loan.
Between 1000 (when al-Biruni used seconds) and 1960 the second was defined as 1/86,400 of a mean solar day (that definition still applies in some astronomical and legal contexts).
Both the CGS and MKS systems used the same second as their base unit of time.
Brokers can receive so much YSP that they can provide you with a lower rate than if you went directly to the lender and they can pay for all your closing cost as opposed to the lender who would make you pay for all the third party fees on your own.
Buydown mortgages allow the seller or lender to pay something similar to mortgage points to reduce interest rate and encourage buyers.
Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance.
Certain details may be specific to different locations: interest may be calculated on the basis of a 360-day year, for example; interest may be compounded daily, yearly, or semi-annually; prepayment penalties may apply; and other factors.
Combinations of fixed and floating rate mortgages are also common, whereby a mortgage loan will have a fixed rate for some period, for example the first five years, and vary after the end of that period.
Common measures include payment to income (mortgage payments as a percentage of gross or net income); debt to income (all debt payments, including mortgage payments, as a percentage of income); and various net worth measures.
Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.
For a fixed rate mortgage, payments for principal and interest should not change over the life of the loan,
For example, a standard mortgage may be considered to be one with no more than 70-80% LTV and no more than one-third of gross income going to mortgage debt.
For example, banks and mortgage brokerages in Canada face restrictions on lending more than 80% of the property value; beyond this level, mortgage insurance is generally required.
For example, six fractional sexagesimal places of a day was used in their specification of the length of the year, although they were unable to measure such a small fraction of a day in real time.
For example, you plan on selling your home in three years, but it will take five years to recoup the closing cost.
For loans made against properties that the borrower already owns, the loan to value ratio will be imputed against the estimated value of the property.
Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example) or indirectly (through regulation of the participants or the financial markets, such as the banking industry), and often through state intervention (direct lending by the government, by state-owned banks, or sponsorship of various entities).
Historically, investment-backed mortgages offered various tax advantages over repayment mortgages, although this is no longer the case in the UK.
However, gross borrowing costs are substantially higher than the nominal interest rate and amounted for the last 30 years to 10.
However, real estate is far too expensive for most people to buy outright using cash: Islamic mortgages solve this problem by having the property change hands twice.
However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.
If a loan is paid off upon maturity it is a new financing, not a refinancing, and all terms of the prior obligation terminate when the new financing funds to pay off the prior debt.
If high-interest debt, such as credit card debt, is consolidated into the home mortgage, the borrower is able to pay off the remaining debt at mortgage rates over a longer period.
If the property is not being purchased at the time of borrowing, this information may not be available.
In 1000, the Persian scholar al-Biruni gave the times of the new moons of specific weeks as a number of days, hours, minutes, seconds, thirds, and fourths after noon Sunday.
In Denmark, similar to the United States capital market, interest rates have fallen to 6 per cent per annum.
In addition, an acquisition fee is charged which amounts to one per cent of the principal.
In contrast, lenders who decide to make nonconforming loans are exercising a higher risk tolerance and do so knowing that they face more challenge in reselling the loan.
In many countries, the ability of lenders to foreclose is extremely limited, and mortgage market development has been notably slower.
In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.
In most cases, the borrower is not able to negotiate the fees for the appraisal or escrow.
In one variation, the bank will buy the house outright and then act as a landlord.
In other words, the borrower may be required to show the availability of enough assets to pay for the housing costs (including mortgage, taxes, etc.
In practice, however, the definition means that high-precision realizations of the second should compensate for the effects of the ambient temperature (black-body radiation) within which atomic clocks operate, and extrapolate accordingly to the value of the second at a temperature of absolute zero.
In relativistic terms, the SI second is defined as the proper time on the rotating geoid.
In some countries, such as the United States, fixed rate mortgages are the norm, but floating rate mortgages are relatively common.
In some jurisdictions, foreclosure and sale can occur quite rapidly, while in others, foreclosure may take many months or even years.
In some jurisdictions, mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender may not have recourse to the borrower after foreclosure.
In such a situation, the initial lender is known as the mortgage originator, which then packages and sells the loan to investors.
In the UK, a partial repayment mortgage is quite common, especially where the original mortgage was investment-backed and on moving house further borrowing is arranged on a capital and interest (repayment) basis.
In the United Kingdom, the dual application of Stamp Duty in such transactions was removed in the Finance Act 2003 in order to facilitate Islamic mortgages.
In the United States, a conforming mortgage is one which meets the established rules and procedures of the two major government-sponsored entities in the housing finance market (including some legal requirements).
In the United States, the average interest rates for fixed-rate mortgages in the housing market started in the tens and twenties in the 1980s and have (as of 2004) reached about 6 per cent per annum.
In the last case, mortgage insurance can be dropped when the lender informs the borrower, or its subsequent assigns, that the property has appreciated, the loan has been paid down, or any combination of both to relegate the loan-to-value under 80%.
In this way the payment amount determined at outset is calculated to ensure the loan is repaid at a specified date in the future.
Instead they sign a contract in April stating that they will keep only a certain percentage of the YSP and the rest will go toward the borrowers closing cost.
Instead, the non-SI units minutes, hours, days, Julian years, Julian centuries, and Julian millennia are used.
Investment-backed mortgages are seen as higher risk as they are dependent on the investment making sufficient return to clear the debt.
It can be used for home improvement, credit cards, and other debt consolidation if the borrower qualifies with their current home equity; they can refinance with a loan amount larger than their current mortgage and keep the cash out.
It is used commonly in loans with a loan-to-value ratio over 80%, and employed in the event of foreclosure and repossession.
Jumbo mortgages and subprime lending are not supported by government guarantees and face higher interest rates.
L Essen in the same 1968 article stated that this value "seemed reasonable in view of the variations in UT2".
Large ensembles of ultracold alkaline earth atoms have provided impressive clock stability for short averaging times, surpassing that of single-ion based systems.
Lenders may also be investors who own an interest in the mortgage through a mortgage-backed security.
Lenders may also, in many countries, sell the mortgage loan to other parties who are interested in receiving the stream of cash payments from the borrower, often in the form of a security (by means of a securitization).
MKS was adopted internationally during the 1940s, defining the second as 1/86,400th of a mean solar day.
McCarthy and Seidelmann refrain from stating that the SI second is the legal standard for timekeeping throughout the world, saying only that "over the years UTC [which ticks SI seconds] has become either the basis for legal time of many countries, or accepted as the de facto basis for standard civil time".
Mortgage payments, which are typically made monthly, contain a capital (repayment of the principal) and an interest element.
New laws have been implemented by the federal government mandating that all brokers have set pricing with the lenders they do business with.
Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system.
Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization.
Regulated lenders (such as banks) may be subject to limits or higher risk weightings for non-standard mortgages.
Restrictions may include requirements to purchase home insurance and mortgage insurance, or pay off outstanding debt before selling the property.
Since a brokerage can have more than one loan officer originating loans, they can sometimes receive additional YSP for bringing in a volume amount of loans.
Since the new RESPA law as of April came into effect in 2011, brokers can no longer decide how much they want to make off of the loan.
Since the risk is transferred to the borrower, the initial interest rate may be, for example, 0.
So far, interrogation of neutral atom based optical standards has been carried out primarily in free space, unavoidably including atomic motional effects that typically limit the overall system accuracy.
Some cases your payment will be the same, in that case you would want to choose the higher rate with no fees.
Some lenders and 3rd parties offer a bi-weekly mortgage payment program designed to accelerate the payoff of the loan.
Some lenders will offer to finance parts of the loan themselves, thus generating so-called "negative points" (i.
Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization.
Sometimes, when wrapping closing costs into a loan you can easily determine whether it makes sense to go with the lower rate with closing cost or the slightly higher rate for free.
Specifically, those tables used for most of the 20th century were Newcomb's Tables of the Sun (used from 1900 through 1983) and Brown's Tables of the Moon (used from 1923 through 1983).
The British Association for the Advancement of Science (BAAS) in 1862 stated that "All men of science are agreed to use the second of mean solar time as the unit of time.
The Earth's motion was described in Newcomb's Tables of the Sun (1895), which provided a formula for estimating the motion of the Sun relative to the epoch 1900 based on astronomical observations made between 1750 and 1892.
The German Bausparkassen have reported nominal interest rates of approximately 6 per cent per annum in the last 40 years (as of 2004).
The appraisal fee cannot be paid for by the lender or broker so this will always show up in the total settlement charges at the bottom of your GFE.
The atoms are tightly localized so that Doppler and photon-recoil related effects on the transition frequency are eliminated.
The broker provides the client and the documentation needed to process the loan and the lender pays them for providing this service in lieu of paying one of their own loan officers.
The chronology of ancient nations: an English version of the Arabic text of the Athâr-ul-Bâkiya of Albîrûnî, or "Vestiges of the Past".
The earliest spring-driven timepiece with a second hand which marked seconds is an unsigned clock depicting Orpheus in the Fremersdorf collection, dated between 1560 and 1570.
The exact form of ownership will vary from country to country, and may restrict the types of lending that are possible.
The homebuyer, in addition to paying rent, will pay a contribution towards the purchase of the property.
The loan to value ratio (or LTV) is the size of the loan against the value of the property.
The more common larger non-SI units of time are not formed by powers of ten; instead, the second is multiplied by 60 to form a minute, which is multiplied by 60 to form an hour, which is multiplied by 24 to form a day.
The most basic arrangement would require a fixed monthly payment over a period of ten to thirty years, depending on local conditions.
The overall accuracy of single trapped ion based optical standards closely approaches that of the state-of-the-art caesium fountain standards.
The second thus defined is consistent with the ephemeris second, which was based on astronomical measurements.
The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation.
There are strict or judicial foreclosures and non-judicial foreclosures, also known as power of sale foreclosures.
There may be legal restrictions on certain matters, and consumer protection laws may specify or prohibit certain practices.
There will also be requirements for documentation of the creditworthiness, such as income tax returns, pay stubs, etc.
Therefore the payment is fixed, although ancillary costs (such as property taxes and insurance) can and do change.
Therefore, a mortgage is an encumbrance (limitation) on the right to the property just as an easement would be, but because most mortgages occur as a condition for new loan money, the word mortgage has become the generic term for a loan secured by such real property.
Therefore, a mortgage loan in which the purchaser has made a downpayment of 20% has a loan to value ratio of 80%.
Therefore, the mortgage insurance acts as a hedge should the repossessing authority recover less than full and fair market value for any hard asset.
These fees must be calculated before embarking on a loan refinancing, as they can wipe out any savings generated through refinancing.
These recommendations were addressed to the International Astronomical Union and were formally adopted by Commission 4 and the General Assembly of the Union in Rome in September 1952.
They found that the second of ephemeris time (ET) had the duration of 9,192,631,770 ± 20 cycles of the chosen caesium frequency.
This clock used an anchor escapement mechanism with a seconds pendulum to display seconds in a small subdial.
This could prevent you from considering a refinance, however if you take the zero closing cost option, you can lower your interest rate without taking any risk of losing money.
This downpayment may be expressed as a portion of the value of the property (see below for a definition of this term).
This gives borrowers assurance that by maintaining repayment the loan will be cleared at a specified date, if the interest rate does not change.
This is because in some countries (such as the United Kingdom and India) there is a Stamp Duty which is a tax charged by the government on a change of ownership.
This mechanism required less power, caused less friction and was accurate enough to measure seconds reliably as one-sixtieth of a minute than the older verge escapement.
This type of arrangement is called an investment-backed mortgage or is often related to the type of plan used: endowment mortgage if an endowment policy is used, similarly a Personal Equity Plan (PEP) mortgage, Individual Savings Account (ISA) mortgage or pension mortgage.
This type of mortgage is common in the UK, especially when associated with a regular investment plan.
This type of refinance can be beneficial provided the prevailing market rate is lower than the borrower's existing rate by a formula determined by the lender offering the loan.
Those who wrote in Latin, including scientists like Bacon, Tycho and Kepler, used the Latin term secunda with the same meaning as far back as the 1200s.
Though SI prefixes may also be used to form multiples of the second such as kilosecond (one thousand seconds), such units are rarely used in practice.
Towards the end of the mortgage the payments are mostly capital and a smaller portion interest.
When interest rates are high relative to the rate on an existing seller's loan, the buyer can consider assuming the seller's mortgage.
When the borrower pays out of pocket for their closing costs, they are at a higher risk of losing the money they invested.
With the advent of atomic clocks, it became feasible to define the second based on fundamental properties of nature.
With the development of the atomic clock in the early 1960s, it was decided to use atomic time as the basis of the definition of the second, rather than the revolution of the Earth around the Sun.
With this arrangement regular contributions are made to a separate investment plan designed to build up a lump sum to repay the mortgage at maturity.
Within a few years, most British precision clockmakers were producing longcase clocks and other clockmakers soon followed.
a partial amortization or balloon loan is one where the amount of monthly payments due are calculated (amortized) over a certain term, but the outstanding capital balance is due at some point short of that term.
banks, the Treasury would attempt to kick start a market for these securities in the United States, primarily to provide an alternative form of mortgage-backed securities.
in the UK there is also the endowment mortgage where the borrowers pay interest while the principal is paid with a life insurance policy.
is the number of payments; for monthly payments over 30 years, 12 months x 30 years = 360 payments.
is the percentage rate used each payment; for a monthly payment, take the Annual Percentage Rate (APR)/12 months
must resort to selling the property to recoup their original investment (the money lent), and are able to dispose of hard assets (such as real estate) more quickly by reductions in price.
the SI second is equivalent to an older measure of the second of UT1, which was too small to start with and further, as the duration of the UT1 second increases, the discrepancy widens.
the recommendations with the most far-reaching consequences were those that defined ephemeris time and brought the lunar ephemeris into accordance with the solar ephemeris in terms of ephemeris time.
" BAAS formally proposed the CGS system in 1874, although this system was gradually replaced over the next 70 years by MKS units.
Such uncertainties rival that of the NIST F-1 caesium atomic clock in the microwave region, estimated as a few parts in 1016 averaged over a day.
full page color photo: 4th caption page, 3rd photo thereafter (neither pages nor photos are numbered).
) for a period of time in the event of the job loss or other loss of income.
, 25 to 30 years is the usual maximum term (although shorter periods, such as 15-year mortgage loans, are common).
, the millisecond (one thousandth of a second), the microsecond (one millionth of a second), and the nanosecond (one billionth of a second).
, to at least six places after the sexagesimal point (a precision of better than 2 microseconds) by the Babylonians after 300 BC.
, “In recent years, optical atomic clocks have become increasingly competitive in performance with their microwave counterparts.
19th- and 20th-century astronomical observations revealed that the mean solar day is slowly but measurably lengthening and the length of a tropical year is not entirely predictable either; thus the sun–earth motion is no longer considered a suitable basis for definition.
5% to 2% lower than the average 30-year fixed rate; the size of the price differential will be related to debt market conditions, including the yield curve.
5×10−11 (limited by day-to-day and device-to-device reproducibility) to their atomic clock based upon the 127I2 molecule, and is advocating use of an 88Sr ion trap instead (relative uncertainty due to linewidth of 2.
625% for free then you will pay the same amount of money over the length of the loan, however if you choose the loan with closing cost and you refinance before the end of your term you wasted money on the closing cost.
9), stating that at a conference "in March 1950 to discuss the fundamental constants of astronomy .
994 m) would have a period at one standard gravity of precisely two seconds, one second for a swing forward and one second for the return swing, enabling such a pendulum to tick in precise seconds.
; McCarthy, D D; Malys, S; Levine, J; Guinot, B; Fliegel, H F; Beard, R L; Bartholomew, T R (2000).
A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries.
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan.
A standard or conforming mortgage is a key concept as it often defines whether or not the mortgage can be easily sold or securitized, or, if non-standard, may affect the price at which it may be sold.
A study issued by the UN Economic Commission for Europe compared German, US, and Danish mortgage systems.
According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple interest in realty) pledges his or her interest (right to the property) as security or collateral for a loan.
Actual or transaction value: this is usually taken to be the purchase price of the property.
An alternative scheme involves the bank reselling the property according to an installment plan, at a price higher than the original price.
An amortization schedule is typically worked out taking the principal left at the end of each month, multiplying by the monthly rate and then subtracting the monthly payment.
Appraised or surveyed value: in most jurisdictions, some form of appraisal of the value by a licensed professional is common.
As a unit of time, the second (meaning the second division by 60 of an hour) entered English in the late 16th century, about a hundred years before it was measured accurately.
Borrower: the person borrowing who either has or is creating an ownership interest in the property.
Borrowers with this type of refinancing typically pay few if any upfront fees to get the new mortgage loan.
Both of these methods compensate the lender as if they were charging interest, but the loans are structured in a way that in name they are not, and the lender shares the financial risks involved in the transaction with the homebuyer.
Budget loans include taxes and insurance in the mortgage payment; package loans add the costs of furnishings and other personal property to the mortgage.
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Depending on the size of the loan and the prevailing practice in the country the term may be short (10 years) or long (50 years plus).
During the 1970s it was realized that gravitational time dilation caused the second produced by each atomic clock to differ depending on its altitude.
Estimated value: lenders or other parties may use their own internal estimates, particularly in jurisdictions where no official appraisal procedure exists, but also in some other circumstances.
FOCS 1, a continuous cold caesium fountain atomic clock in Switzerland, started operating in 2004 at an uncertainty of one second in 30 million years.
Following several years of work, Louis Essen from the National Physical Laboratory (Teddington, England) and William Markowitz from the United States Naval Observatory (USNO) determined the relationship between the hyperfine transition frequency of the caesium atom and the ephemeris second.
For home mortgages in the United States, there may be tax advantages available with refinancing, particularly if one does not pay Alternative Minimum Tax.
For older borrowers (typically in retirement), it may be possible to arrange a mortgage where neither the capital nor interest is repaid.
For specialized purposes, a second may be used as a unit of time in time scales where the precise length differs slightly from the SI definition.
Foreclosure or repossession: the possibility that the lender has to foreclose, repossess or seize the property under certain circumstances is essential to a mortgage loan; without this aspect, the loan is arguably no different from any other type of loan.
Graduated payment mortgage loan have increasing costs over time and are geared to young borrowers who expect wage increases over time.
If the refinanced loan has lower monthly repayments or consolidates other debts for the same repayment, it will result in a larger total interest cost over the life of the loan, and will result in the borrower remaining in debt for many more years.
If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.
In 1670, London clockmaker William Clement added this seconds pendulum to the original pendulum clock of Christian Huygens.
In 1832, Gauss proposed using the second as the base unit of time in his millimeter-milligram-second system of units.
In 1956, the second was redefined in terms of a year (the period of the Earth's revolution around the Sun) for a particular epoch because, by then, it had become recognized that the Earth's rotation on its own axis was not sufficiently uniform as a standard of time.
In a fixed rate mortgage, the interest rate, and hence periodic payment, remains fixed for the life (or term) of the loan.
In addition to the two standard means of setting the cost of a mortgage loan (fixed at a set interest rate for the term, or variable relative to market interest rates), there are variations in how that cost is paid, and how the loan itself is repaid.
In an adjustable rate mortgage, the interest rate is generally fixed for a period of time, after which it will periodically (for example, annually or monthly) adjust up or down to some market index.
In many jurisdictions, though not all (Bali, Indonesia being one exception), it is normal for home purchases to be funded by a mortgage loan.
In most countries, a number of more or less standard measures of creditworthiness may be used.
In most jurisdictions, a lender may foreclose the mortgaged property if certain conditions - principally, non-payment of the mortgage loan - occur.
In most of Western Europe (except Denmark, the Netherlands and Germany), variable-rate mortgages are more common, unlike the fixed-rate mortgage common in the United States.
In some countries with currencies that tend to depreciate, foreign currency mortgages are common, enabling lenders to lend in a stable foreign currency, whilst the borrower takes on the currency risk that the currency will depreciate and they will therefore need to convert higher amounts of the domestic currency to repay the loan.
In some jurisdictions, varying by American state, refinanced mortgage loans are considered recourse debt, meaning that the borrower is liable in case of default, while un-refinanced mortgages are non-recourse debt.
In the context of personal (as opposed to corporate) finance, refinancing multiple debts makes management of the debt easier.
In virtually all jurisdictions, specific procedures for foreclosure and sale of the mortgaged property apply, and may be tightly regulated by the relevant government.
Islamic Sharia law prohibits the payment or receipt of interest, meaning that Muslims cannot use conventional mortgages.
Lenders provide funds against property to earn interest income, and generally borrow these funds themselves (for example, by taking deposits or issuing bonds).
Many countries have a notion of standard or conforming mortgages that define a perceived acceptable level of risk, which may be formal or informal, and may be reinforced by laws, government intervention, or market practice.
Many countries have lower requirements for certain borrowers, or "no-doc" / "low-doc" lending standards that may be acceptable in certain circumstances.
Many other specific characteristics are common to many markets, but the above are the essential features.
Mortgage insurance is an insurance policy designed to protect the mortgagee (lender) from any default by the mortgagor (borrower).
Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see commercial mortgages).
Mortgage lending will also take into account the (perceived) riskiness of the mortgage loan, that is, the likelihood that the funds will be repaid (usually considered a function of the creditworthiness of the borrower); that if they are not repaid, the lender will be able to foreclose and recoup some or all of its original capital; and the financial, interest rate risk and time delays that may be involved in certain circumstances.
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Mortgage loans are generally structured as long-term loans, the periodic payments for which are similar to an annuity and calculated according to the time value of money formulae.
Mortgage: the security interest of the lender in the property, which may entail restrictions on the use or disposal of the property.
Most fixed-term loans have penalty clauses ("call provisions") that are triggered by an early repayment of the loan, in part or in full, as well as "closing" fees.
NIST: Definition of the second; notice the cesium atom must be in its ground state at 0 K
On July 28, 2008, US Treasury Secretary Henry Paulson announced that, along with four large U.
Planck time | <1 attosecond | Attosecond | Femtosecond | Picosecond | Nanosecond | Microsecond | Millisecond
Principal: the original size of the loan, which may or may not include certain other costs; as any principal is repaid, the principal will go down in size.
Refinancing for reasons 2, 3, and 5 are usually undertaken by borrowers who are in financial difficulty in order to reduce their monthly repayment obligations, with the penalty that they will take longer to pay off their debt.
Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms.
SI prefixes are commonly used to measure time less than a second, but rarely for multiples of a second (which is known as metric time).
SI prefixes are frequently combined with the word second to denote subdivisions of the second, e.
Since the value of the property is an important factor in understanding the risk of the loan, determining the value is a key factor in mortgage lending.
Some lenders may also require a potential borrower have one or more months of "reserve assets" available.
The Egyptians subdivided daytime and nighttime into twelve hours each since at least 2000 BC, hence the seasonal variation of their hours.
The charge to the borrower depends upon the credit risk in addition to the interest rate risk.
The day was subdivided sexagesimally, that is by 1⁄60, by 1⁄60 of that, by 1⁄60 of that, etc.
The definition of the second was later refined at the 1997 meeting of the BIPM to include the statement
The examples and perspective in this article may not represent a worldwide view of the subject.
The loan to value ratio is considered an important indicator of the riskiness of a mortgage loan: the higher the LTV, the higher the risk that the value of the property (in case of foreclosure) will be insufficient to cover the remaining principal of the loan.
The main alternative to a capital and interest mortgage is an interest-only mortgage, where the capital is not repaid throughout the term.
The most common way to repay a secured mortgage loan is to make regular payments of the capital (also called the principal) and interest over a set term.
The realization of the standard second is described briefly in a special publication from the National Institute of Standards and Technology, and in detail by the National Research Council of Canada.
The revised definition seems to imply that the ideal atomic clock contains a single caesium atom at rest emitting a single frequency.
The second (symbol: s) is the base unit of time in the International System of Units (SI) and is also a unit of time in other systems of measurement (abbreviated s or sec).
The second first became accurately measurable with the development of pendulum clocks keeping mean time (as opposed to the apparent time displayed by sundials).
The second is also the base unit of time in the centimetre-gram-second, metre-kilogram-second, metre-tonne-second, and foot-pound-second systems of units.
The tropical year in the 1960 definition was not measured but calculated from a formula describing a mean tropical year that decreased linearly over time, hence the curious reference to a specific instantaneous tropical year.
The two basic types of amortized loans are the fixed rate mortgage (FRM) and adjustable-rate mortgage (ARM) (also known as a floating rate or variable rate mortgage).
The word mortgage is a French Law term meaning "death contract", meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure.
There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage.
These arrangements are variously called reverse mortgages, lifetime mortgages or equity release mortgages (referring to home equity), depending on the country.
This SI second, referred to atomic time, was later verified to be in agreement, within 1 part in 1010, with the second of ephemeris time as determined from lunar observations.
This can be an excellent choice in a declining market or if you are not sure you will hold the loan long enough to recoup the closing cost before you refinance or pay it off.
This definition refers to a caesium atom at rest at a temperature of 0 K (absolute zero).
This definition was ratified by the Eleventh General Conference on Weights and Measures in 1960, which also established the International System of Units.
This policy is typically paid for by the borrower as a component to final nominal (note) rate, or in one lump sum up front, or as a separate and itemized component of monthly mortgage payment.
Thus, the 1960 SI definition abandoned any explicit relationship between the scientific second and the length of a day, as most people understand the term.
To consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)
To free up cash (often for a longer term, contingent on interest rate differential and fees)
To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)
To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
Today, the atomic clock operating in the microwave region is challenged by atomic clocks operating in the optical region.
True No Closing Cost mortgages are usually not the best options for people who know that they will keep that loan for the entire length of the term or at least enough time to recoup the closing cost.
Under the International System of Units (via the International Committee for Weights and Measures, or CIPM), since 1967 the second has been defined as the duration of 9,192,631,770 periods of the radiation corresponding to the transition between the two hyperfine levels of the ground state of the caesium 133 atom.
Until recently it was not uncommon for interest only mortgages to be arranged without a repayment vehicle, with the borrower gambling that the property market will rise sufficiently for the loan to be repaid by trading down at retirement (or when rent on the property and inflation combine to surpass the interest rate).
Upon making a mortgage loan for the purchase of a property, lenders usually require that the borrower make a downpayment; that is, contribute a portion of the cost of the property.
Within the European Union, covered bonds market volume (covered bonds outstanding) amounted to about EUR 2 trillion at year-end 2007 with Germany, Denmark, Spain, and France each having outstandings above 200,000 EUR million.
 Although a third for 1⁄60 of a second remains in some languages, for example Polish (tercja) and Turkish (salise), the modern second is subdivided decimally.
 Pfandbrief-like securities have been introduced in more than 25 European countries—and in recent years also in the U.
 Similarly, in the UK "the Government is inviting views on options for a UK framework to deliver more affordable long-term fixed-rate mortgages, including the lessons to be learned from international markets and institutions".
:105 In 1581, Tycho Brahe redesigned clocks that displayed minutes at his observatory so they also displayed seconds.
:417–418 During the 3rd quarter of the 16th century, Taqi al-Din built a clock with marks every 1/5 minute.
 From 1670 to 1680, Clement made many improvements to his clock and introduced the longcase or grandfather clock to the public.
 This definition brings the observed positions of the celestial bodies into accord with Newtonian dynamical theories of their motion.
 As a result, in 1967 the Thirteenth General Conference on Weights and Measures defined the SI second of atomic time as:
 In 1997 CIPM added that the periods would be defined for a caesium atom at rest, and approaching the theoretical temperature of absolute zero, and in 1999, it included corrections from ambient radiation.
 (Nevertheless, this SI second was already, when adopted, a little shorter than the then-current value of the second of mean solar time.
 Between 1960 and 1967, it was defined in terms of the period of the Earth's orbit around the Sun in 1900, but it is now defined more precisely in atomic terms.
 In 1267, the medieval scientist Roger Bacon stated the times of full moons as a number of hours, minutes, seconds, thirds, and fourths (horae, minuta, secunda, tertia, and quarta) after noon on specified calendar dates.
 A wraparound mortgage is a form of seller financing that can make it easier for a seller to sell a property.
 Using a common-view measurement method based on the received signals from radio station WWV, they determined the orbital motion of the Moon about the Earth, from which the apparent motion of the Sun could be inferred, in terms of time as measured by an atomic clock.
 Homeowners can also take out equity loans in which they receive cash for a mortgage debt on their house.
 Mortgage loan financing relies less on securitizing mortgages and more on formal government guarantees backed by covered bonds (such as the Pfandbriefe) and deposits, except Denmark and Germany where asset-backed securities are also common.
 The Babylonians did not use the hour, but did use a double-hour lasting 120 modern minutes, a time-degree lasting four modern minutes, and a barleycorn lasting 31⁄3 modern seconds (the helek of the modern Hebrew calendar), but did not sexagesimally subdivide these smaller units of time.
 Much of Europe has home ownership rates comparable to the United States, but overall default rates are lower in Europe than in the United States.
^ Explanatory Supplement to the Astronomical Ephemeris and the American Ephemeris and Nautical Almanac (prepared jointly by the Nautical Almanac Offices of the United Kingdom and the United States of America, HMSO, London, 1961), at Sect.
^ In the late 1950s, the caesium standard was used to measure both the current mean length of the second of mean solar time (UT2) (9,192,631,830 cycles) and also the second of ephemeris time (ET) (9,192,631,770±20 cycles), see L Essen (1968).
interest: Interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower.
payment amount and frequency: The amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.
prepayment: Some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.
term: Mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid.
the duration of 9,192,631,770 periods of the radiation corresponding to the transition between the two hyperfine levels of the ground state of the caesium 133 atom.
the duration of 9,192,631,770 periods of the radiation corresponding to the transition between the two hyperfine levels of the ground state of the caesium-133 atom.