Welcome to Mortgage Guide
Bank Of America Mortgage Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Use an Online Mortgage Calculator to Understand ARMs
from: Mortage & Debt FactsAdjustable rate mortgages still exist, even with the bad rap they’ve received from the mortgage crisis. They are a specialty product that were not meant to be used by everyone, just by a few people who might benefit from the adjustable rate. People who weren’t planning on spending more than five year’s in their home or people who had income that was rising were the traditional buyers of ARM loans. The reasons for this are that the loans adjustable terms are difficult to assess unless you have done your research with an online mortgage calculator. If you don’t know what you are signing with an ARM loan, you shouldn’t get this type of loan.
Get the Facts
There isn’t just one type of adjustable rate mortgage, so you will need to understand the product you are investigating before you plug any numbers into a mortgage calculator. You will need to know how long the initial payment is fixed and when and how often the rate is adjusted. For instance, in a 3/1 adjustable rate mortgage, you might have a period of three years and then it adjusts every year thereafter. There are also 5/1, 7/1, and 10/1 ARMs. There are also hybrid mortgages and ARMs that are tied to different indexes. This can make understanding the product you have a bit more complex. Try to get a good idea whether you are dealing with a classic ARM or whether this is a hybrid product. Also, make sure you know how long the initial rate lasts as some offer teaser interest rates that quickly fly by, some in less than a year.
You will also want to know if the adjustments are capped, so that they cannot go past a certain amount. This is very important to be able to see your best and worst case scenarios with a mortgage calculator. The caps are usually set as a percentage of the previous payment amount or sometimes as an interest rate hike cap. The thing to understand is that even though the interest rate increase may be capped the first year, and nothing happens to adjust the rate the following year, you may still be charged an increase from the previous year’s cap. It’s because the lender assumes you owe and they cut you a break on the previous year. This means that you won’t really be able to figure out exactly what you owe each year on the mortgage calculator, but you can get a best case and worst case scenario from the mortgage calculator.
Bank Of America Mortgage Specific links
Bank Of America Mortgage News
Bank of America's Interactive Home Loan Planner Shines Light on the Mortgage ... - MarketWatch (press release)
 PR Web | Bank of America's Interactive Home Loan Planner Shines Light on the Mortgage ... MarketWatch (press release) "Customer research has consistently shown that people want consumer education tools that provide clear, easy-to-understand information about the home buying experience," said Matt Vernon, Bank of America's Home Loans Sales executive. Home loan affordability improves in April, and the competitive mortgage market ... |
Bank of America, MERS Lose Bid to Dismiss Texas Fee Suit - Bloomberg
 WLS | Bank of America, MERS Lose Bid to Dismiss Texas Fee Suit Bloomberg Bank of America Corp. and Mortgage Electronic Registration Systems Inc. failed to persuade a judge to dismiss a lawsuit claiming they shortchanged Texas counties out of uncollected mortgage filing fees. “The plaintiffs have brought sufficient evidence ... Banks sued for allegedly avoiding property recording fees Kelly says MERS lawsuit had been contemplated for months |
Freddie Forces BofA to Buy Back Mortgages - Wall Street Journal
 Housing Wire | Freddie Forces BofA to Buy Back Mortgages Wall Street Journal By NICK TIMIRAOS Freddie Mac forced Bank of America Corp. to buy back $330 million of mortgages originated over the past two years after the government-controlled mortgage-finance company challenged the lender over technical issues with how the loans ... BofA to Buy Back $330 Million of Mortgages From Freddie Mac BofA Will Buy Back $330 Million of Mortgages From Freddie Freddie Mac reports $330M Bank of America mortgage prepayment |
FDIC Sues Bank Of America, JPMorgan, Others Over Toxic Mortgage Bonds That ... - Huffington Post
 CBS News | FDIC Sues Bank Of America, JPMorgan, Others Over Toxic Mortgage Bonds That ... Huffington Post AP | Posted: 05/21/2012 6:27 pm Updated: 05/22/2012 8:31 am WASHINGTON (AP) — The government has sued several big banks over toxic mortgage securities they issued that were bought by two small Illinois banks which failed in May 2009. FDIC Sues Big Banks Over Mortgage Securities FDIC sues Bank of America, others over mortgage debt losses FDIC Chases Big Banks |
Bank of America CEO "comfortable" with bank's investments - Chicago Tribune
 Retirement Planning | Bank of America CEO "comfortable" with bank's investments Chicago Tribune (Reuters) - Bank of America Corp is "very comfortable" with the composition of its corporate investment portfolio, which is invested mostly in government-guaranteed mortgage bonds and US Treasuries, Chief Executive Officer Brian Moynihan said at an ... Bank of America to Sell Some Branches Bank of America Not 'Too Big to Manage' Moynihan dismisses suggestions Bank of America is 'too big to manage' |