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What are the advantages of high rate of inflation for mortgage lenders?
Wiki User
∙ 13y ago
There aren't. It means they're being paid back with money that's worth much less than the money they originally lent.
Wiki User
∙ 13y ago
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Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Is inflation caused by high inflation?
no ,but it is caused by econemy
What does the Phillip's Curve illustrate?
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
To help stop high inflation Germany?
Germany implemented policies to help stop high inflation.
Where can someone refinance a mortgage online?
To refinance a mortgage could be done through the different banks. They can also be done through mortgage lenders and brokers. These can be found on line or finance company's on the general high street.
Why despite the huge reduction in Interest rate in the US to quarter a prcent Mortgage lenders still charge home buyers an interest rate as high as six percent without passing any reduction?
Because mortgage lenders make money by charging more interest than they pay.
Reasons to Work with a Mortgage Banker?
Due to the high rate of mortgage defaults and declining home prices, many banks have tightened their mortgage lending practice and have made it quite difficult to obtain a mortgage. Those who are looking for a mortgage, and are having a difficult time securing a home loan, should consider working with a mortgage banker to get their mortgage. Working with a mortgage banker has many advantages compared to getting a mortgage through a traditional lender. The first reason to work with a mortgage banker when getting a mortgage loan is that a mortgage banker can often provide a borrower with lower interest rates and fees than traditional banks can offer. Mortgage bankers often work for institutions that only offer mortgages to their customers, as opposed to traditional banks that also provide deposit accounts and other loans. Because of this, mortgage bankers do not have the same overhead expenses and traditional banks and do not need to charge as high of an interest rate as traditional banks to turn a profit. The second reason to work with a mortgage banker that the mortgage bankers tend to have looser underwriting standards than traditional lenders. Traditional mortgage lenders and banks are suspect to the tighter federally guided underwriting standards. Since mortgage bankers are not, they are often able to provide mortgages to customers that would not normally qualify under the traditional lender's guidelines. However, the mortgage bankers tend to charge higher interest rates and fees as compensation for taking on the additional risk of lending to the otherwise high-risk borrowers. The third reason to work with a mortgage banker is that mortgage bankers are often able to provide different mortgage products than traditional lenders. While mortgage regulations have cut down on the types of mortgages that traditional lenders can offer, mortgage bankers have not been as affected. Mortgage bankers can still offer some unusual mortgage products including interest only mortgages, adjustable rate mortgages, and negative amortization loans which may not be offered by traditional banks.
Has the credit crisis affected the mortgage lending rates?
"The credit crisis has affected the mortgage lending rates drastically. Many lenders are not giving out loans and mortgages at all without either high down payments, or pristine credit."
Which was the decade of high inflation and high unemployment?
Which was the decade of high inflation and high unemployment
How does a repossession affect a mortgage?
If your house is repossessed in the UK you will be entered on to The Council of Mortgage Lenders "Repossession Register" Future mortgage companies check this register as part of their usual credit checks. If there is an entry in yours (or your partners name in joint mortgage applications) then this will have an adverse effect on your application and may result in your mortgage application being turned down by high street lenders. This does not mean it wouuld not be possible to get a mortgage as some companies specialise in obtaining mortgages for people who have previously been repossessed. These companies do however charge more! If you refer to an existing mortgage, on another property, then any previous repossessions will not have an effect on this mortgage, if however you need to remortgage at any time in the future you will be subject to the same problems as outlined above. This would be of particular concern if your current mortgage deal will revert of a lenders Standard Variable Rate (SVR) which is much higher than what your current deal charges. Most deals last 2 or 5 years.
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Is inflation caused by high inflation?
no ,but it is caused by econemy
Why haven't housing prices in Australia been affected as much as in the US and UK?
==One Answer== The level of sub-prime lending wasn't as high in Australia as in the US. The number of sub-prime predatory lenders is not as high in Australia as in the US. In the US, the present administration promoted minority home ownership by lowering the requirements to qualify for a mortgage and offering help with down payments and closing costs to low income buyers. That opened the floodgates for unregulated predatory lenders to take advantage of unsophisticated borrowers who couldn't afford the mortgage payments. For that category of lenders, the profit was made at the closing with their fees coming directly out of the proceeds of the mortgage. However, many experts think the backlash from irresponsible lending in Australia is only taking longer to take effect. Many think the Australian housing market will begin to feel the stress of mortgage defaults later this year.
What does the Phillip's Curve illustrate?
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
What happens if your mortgage exceeds the house value?
If your mortgage exceeds the sale price of your property your will be subject to a "Mortgage Shortfall" If you are selling your property to move to another and the shortfall is less the 2% most high street lenders can arrange a loan for your replayment of the mortgage shortfall and will not prevent you selling your property. If the % of "Shortfall" is significant some lenders will insist in you taking a secured loan, or disallow the sale of your property until some of the shortfall is paid. If you have mortgage shortfall, AND mortgage arrears it is unlikely any high street lender will allow you to sell the property and move to another. If your mortgage arrears exceed 3 months they may start repossession proceedings. In most cases if individuals financial situation allows the most cost effective way of dealing with mortgage shortfall if you intend to move and do not have adverse credit is to find the cheapest unsecured loan for the minimun required by the lender to pay off a lump sum of the mortgage which will reduce or remove any shortfall your property currently has.
Is the mortgage in Salem high?
I am sorry, but I don't understand your question. Maybe you are trying to ask ""what is the mortgage in Salem High?"" the mortgage varies from 4.917% to 4.665% in Salem High
