This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your... Full Story

One of the biggest challenges many homeowners face is making smaller rooms look larger and more inviting. Here are five ways to achieve that goal:

 1. Paint Color – Lighter colors such as creams, icy blues and greens make the best color combinations. Light colors tend to reflect light making the room brighter there by more open. Darker shades of wall color absorb the light giving the room a cave-like feeling. If you want... Full Story

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

acceleration clause – A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.