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What are the Index and Margin for an Adjustable-Rate Mortgage?

The interest of adjustable-rate mortgages (ARM) are tied to the index and margin. The index is a reference point for the interest rate and will vary based on the market. The margin, on the other hand, is a firm set of percentage points that the lender determines. When...

What is a Lender Credit?

Many banks and mortgage lenders often offer borrowers lender credits to help pay for closing costs. Here we’ll discuss lender credits in more detail and how you can use these credits to reduce — or in some cases eliminate — reverse mortgage closing costs. What is a...

What is the Mortgage Interest Rate Index?

The mortgage interest rate index is a benchmark that adjustable-rate mortgages (ARMs) base their fully indexed interest rates on. The fully indexed rate is the interest that borrowers will pay for their loan. To get this, the ARM index is added to the margin. There...

What is Asset Dissipation?

Asset dissipation is a calculation of how much income you would have each month if you sold all your liquid assets for cash, then figured out how much income you would have if you divided it into even monthly withdrawals. What is an asset dissipation loan? Asset...

What is a Loan Origination Fee for a Home Mortgage?

A loan origination fee for a mortgage is a charge that lenders establish as compensation for setting up or processing your loan. This fee can range anywhere between 0.5% and 1% of the total loan amount. For reverse mortgages, that’s $2,500 or 2% of the first $200,000...

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What is a Lender Credit?

What is a Lender Credit?

Many banks and mortgage lenders often offer borrowers lender credits to help pay for closing costs. Here we’ll discuss lender credits in more detail and how you can use these credits to reduce — or in some cases eliminate — reverse mortgage closing costs. What is a...

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