Here is a video about the mortgage market from Bloomberg. This kind of video is great for improving your listening skills because it has a natural speed and business content.
- mortgage- a loan to buy a house
- refinancing- to get a new, cheaper loan to pay off your old, expensive loan
- rules of the road- rules you need to follow
- good credit- this means that you have a good history of paying money back when you borrow it
- proof of income- a bank statement or document from your company showing how much you earn
- down-payment- a deposit
- payment affordability- you can afford to pay the payments easily
- extra layer of security- it is a safe choice
- exotic loans- fancy loans that are different to standard loans
- prominent- well-known
- lean towards- you should choose this option
- wanna/gotta- want to/got to
Now the fixed rate mortgage, just as the name implies – just as the name implies just means that you are going to say something that the person could have guessed. ….the rate is fixed. Of course the rate is fixed in a fixed-rate mortgage.
A pencil sharpener, just as the name implies, sharpens pencils.
Lady Gaga, just as her name implies, is a woman.
If it is raining tomorrow, I will stay home and study a lot. On the other hand, if it is sunny…
If you’re thinking about buying or refinancing a home, then you’ll probably need to apply for a mortgage. With so many factors to consider, here’s what you’ll need to know to find the mortgage and lender that’s best for you.
There are really 3 rules of the road that borrowers need to know:
You have to have good credit, you have to have proof of income and you have to have money for a down-payment. If you have those three things, you’re in business. There are many different types of mortgages; you can broadly define them into one of two different categories. Either fixed rate mortgages or adjustable rate mortgages.
Now the fixed rate mortgage, just as the name implies, the rate is fixed and so is your monthly payment for the term of the loan.
It provides permanent payment affordability. It may not be the best loan for every single borrower but it is the best gauge of affordability. Now with an adjustable rate mortgage, the interest rate can change.
Rates could rise and of course that’s why many people choose a fixed rate because it gives them that extra layer of security.
Many different types of exotic loans can be considered adjustable rate loans. Ah, but a lot of those programs are not nearly as prominent as they were a few years ago because they had much higher instances of default.
When you’re deciding between a 15-year mortgage or a longer 30-year mortgage, you need to assess not only your timetable but also your cash flow and then ultimately, what are your goals.
You gotta think of these things in terms of the long-term, 30 years, 50 years is a long term but ah, 15 years can go by pretty fast.
Maybe you’re approaching retirement and the idea is you wanna have the mortgage completely paid off by the time you retire, well in that case, you wanna lean towards the 15-year mortgage but make sure you have the cash flow that can support those higher monthly payments.
On the other hand, ah, if you have plenty of income coming in in retirement, retiring the mortgage may not be such a high priority particularly with low rates and the ability to deduct that interest from your taxes.
For more information, including online calculators to help in your decision, got to bankrate.com and the Better Business Bureau at BBB.org.