Sentences with phrase «value of the mortgage declines»

(This is also a great option for many families who often get mortgage life insurance instead, which is more expensive than term life and the payout declines as the face value of the mortgage declines.)

Not exact matches

The cascading effect of the sharp increase in mortgage delinquencies and the resulting steep decline in the market value of mortgage assets was a key contributing factor to the financial crisis.

REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT may decline).

In Hoosick Falls, where several banks suspended property financing and declined to issue mortgages last year, the litigation represents a potential recovery for thousands of property owners who believe the values of their homes and businesses were diminished by the stigma caused by the pollution.

In 2011, enhancements were made to the Home Affordability Refinance Program (HARP) to help homeowners refinance their current mortgage even if the value of the home has declined.

In a recent Wall Street Journal article, Pfau indicated that a sound investment strategy includes taking out a reverse mortgage line of credit and relying on it only during periods when the value of the borrower's stock portfolio is declining.

The story of Ed McMahon's brush with foreclosure will sound familiar to many Americans with mortgage woes — a combination of a financial setback and a property which has declined in value and can't be sold has left McMahon seriously behind on his mortgage payments.

The Monster is by far the most readable explanation of the mortgage meltdown, something everyone who has faced declining home values should read.

Unlike regular «forward mortgages,» a reverse mortgage is essentially a huge negatively - amortizing loan — the loan balance increases because borrowers are not making monthly payments — it follows that if the loan balance increases and the value of the property declines then the FHA can be stuck with big insurance claims.

With banks generally unwilling to offer lasting mortgage modifications, many consumers feel out of options when dealing with a home that has declined in value.

Unlike a traditional loan, reverse mortgages are non-recourse, meaning that a borrower will never owe more than the value of their home — a comforting aspect of the loan in times when home values have declined.

Borrowers can run the risk of going underwater on their mortgage if their home price declines — taking out too much equity and having a home's real estate value drop can be a crippling combination.

Taking on the additional risk of insuring larger loans when home values continue declining may seem foolhardy, but if approved, time will tell whether this plan stems the tide of foreclosures or further sinks FHA mortgage insurance reserves.

With historically low mortgage rates at the forefront of every homeowner's mind, declining property values are not that far behind in their thought process.

Those who currently hold a mortgage could benefit from getting their finances in order now as you may find in a declining market that you do not have enough equity to do it if your mortgage rate increases or the value of your property depreciates.

Psychological effects of book value growth Many mortgage REITs posted a return to positive book value growth in the first quarter of 2014 after declines throughout 2013 and investors were throwing away their shares in mortgage REITs in panic mode.

The market value of a portfolio may decline as a result of a number of factors, including interest rate risk, credit risk, inflation / deflation risk, currency risk, mortgage and asset - backed securities risk, U.S. Government securities risk, foreign investment risk and derivatives risk.

If the rate of mortgage defaults continues to rise, the value of these securities will further decline, forcing additional write - downs on Lehman's balance sheet.

The market value of the portfolio may decline as a result of a number of other factors, including interest rate risk, credit risk, inflation / deflation risk, mortgage and asset - backed securities risk, US Government securities risk, foreign investment risk, currency risk, derivatives risk, leverage risk and liquidity risk.

The market value of the portfolio may decline as a result of a number of factors, including interest rate risk, credit risk, inflation / deflation risk, mortgage and asset - backed securities risk, U.S. Government securities risk, foreign investment risk, currency risk, derivatives risk, leverage risk and liquidity risk.

An underwater mortgage can happen for a variety of reasons, but the most common is when a buyer puts down a relatively small down payment when purchasing a home only to have the home's value decline.

With the housing market slumping, low Colorado mortgage rates on FHA loans have helped to offset the pain of declining property values.

Because the property value trend appears to be declining in many parts of California, we recommend that Los Angeles homeowners seize the present opportunity to refinance their adjustable rate mortgages into a fixed rate loan that is more affordable.

Declining home prices and rising mortgage delinquency rates depleted the value of mortgage - backed securities and collateralized debt obligations.

This value can build up over time as the mortgage balance declines and the market value of the property appreciates.

HARP can help you refinance your mortgage if you've had difficulty obtaining traditional refinancing due to a lack of home equity or a decline in your home's value.

In 2007, AFE had considerable declines in the value of its fixed maturity and mortgage - backed security holdings.

If you are current with your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be able to refinance through the federal government's Home Affordable Refinance Program (HARP).

Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

This typically occurs in areas where home values have steeply declined, leaving homeowners to pay mortgages of significantly more than their homes are worth.

Because of the declining home values we have seen over the last few years, it's common for a mortgage appraisal to come in lower than the asking price.

The Federal Home Loan Bank of Seattle reports that it will likely report a risk - based capital deficiency and suspend its dividend because of a decline in the market value of its mortgage - backed securities portfolio.

REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, the value of the REIT may decline).

Today, real estate values have declined to the point that the majority of homeowners have mortgages that are higher than their homes are worth.

REIT Risk (Real Estate Fund only): The Fund's investments in REITs may subject the fund to the following additional risks: declines in the value of real estate, changes in interest rates, lack of available mortgage funds or other limits on obtaining capital, overbuilding, extended vacancies of properties, increases in property taxes and operating expenses, changes in zoning laws and regulations, casualty or condemnation losses and tax consequences of the failure of a REIT to

The values of assets underlying mortgage - backed securities may decline and, therefore, may not be adequate to cover underlying investors.

As each month passes you're building more and more equity in your home as your mortgage balance declines and the value of your home increases [hopefully].

The revamped HARP refinance program provides more homeowners, who may not otherwise qualify for refinancing because of declining home values, the ability to refinance into a lower interest rate and / or more stable mortgage product.

Based on the mechanics of the product, mortgage life insurance is a financial product which paradoxically declines in value as the client - borrower pays more premium to the insurer.

Mortgage insurance policies also decline in actual value as you pay down the principal of your mortgage, where a term or permanent policy (more on the differences between the two in a moment) maintains a fixed value for the duration of tMortgage insurance policies also decline in actual value as you pay down the principal of your mortgage, where a term or permanent policy (more on the differences between the two in a moment) maintains a fixed value for the duration of tmortgage, where a term or permanent policy (more on the differences between the two in a moment) maintains a fixed value for the duration of the plan.

Old - fashioned mortgage life insurance delivers a policy that starts with the full value of your mortgage and then declines as your mortgage balance decreases.

With mortgage life insurance, the premiums may remain the same, but the value of the policy decreases over time as the balance of your mortgage declines.

Home Affordable Refinance Program (HARP): A federal program for mortgage borrowers who are current on their payments but having trouble acquiring traditional refinancing because the value of their home has declined.

This 2 percent reserve fund has dipped in recent years part because of continuing declines in home values, which increases the amount of reserves (and therefore more quickly depletes the reserve fund) that the agency must maintain for each mortgage.

A typical homeowner's net worth climbs because of upticks in home values and declining mortgage balances.

Unlike a traditional loan, reverse mortgages are non-recourse, meaning that a borrower will never owe more than the value of their home — a comforting aspect of the loan in times when home values have declined.

And although the total volume of short sales and foreclosures has declined since the height of the Great Recession, 3.6 million owners nationwide remained underwater as of midyear: Their home values were less than their mortgage balances, according to the analytics firm CoreLogic.

And in an environment of declining prices, the inflation resulting from automated lending poses a risk not just to individual homeowners — who could see the value of their equity severely eroded or even erased — but to the entire banking system, which now has to contend with the possibility that their mortgage loans are backed by homes that aren't worth what they thought.

Debra discusses how to stage a house to maximize it's value given the double whammy impact of Southern California's declining propery values and that 70 % of mortgages are adjustable rate in a rising interest rate environment.

Note: Borrowers are not eligible for a new FHA - insured mortgage if they pursued a short - sale agreement on their principal residence simply to take advantage of declining market conditions to purchase a similar or superior property within a reasonable commuting distance at a reduced price, as compared with current market value.