First Time Home Buyers
Currently viewing the tag: "Mortgage Glossary"
A 15-year fixed mortgage is a mortgage loan that keeps the same rate of interest throughout the loan’s 15-year life. In most cases, fixed-rate mortgages are fully amortizing, so that the debt will be paid off at the end of the 15-year term.
Continue Reading →A 15-year fixed mortgage refinance is a type of mortgage loan that replaces an existing mortgage loan; the new debt is structured with a 15-year maturity and an interest rate that stays the same throughout those 15 years.
Continue Reading →A 15-year jumbo mortgage has two defining characteristics. First, the mortgage loan’s maturity period is 15 years. Secondly, the mortgage loan amount exceeds the maximum loan size that government-chartered agencies Fannie Mae and Freddie Mac can purchase or guarantee. Because Fannie Mae and Freddie Mac don’t support jumbo mortgages, these loans usually carry higher interest [...]
Continue Reading →A 15-year jumbo mortgage has two defining characteristics. First, the mortgage loan’s maturity period is 15 years. Secondly, the mortgage loan amount exceeds the maximum loan size that government-chartered agencies Fannie Mae and Freddie Mac can purchase or guarantee. Because Fannie Mae and Freddie Mac don’t support jumbo mortgages, these loans usually carry higher interest [...]
Continue Reading →The 182-day T-bill auction average discount rate is the average yield on Treasury bills that mature in 182 days, based on sales made at weekly competitive auctions. Investors purchase the T-bills at a discount, meaning the purchase price is less than the note’s face value. A steeper discount means a higher yield. The 182-day [...]
Continue Reading →A 1-month CD (certificate of deposit) is a savings instrument that pays a fixed rate of interest and remains in effect for a period of one month. Funds cannot be withdrawn earlier than the one-month expiration without penalty. Bank-issued CDs are insured by the FDIC for amounts up to $100,000 per depositor.
Continue Reading →A 1-month IRA CD (certificate of deposit) is a savings instrument held within a tax-advantaged Individual Retirement Account (IRA). The deposit pays a fixed rate of interest and remains in effect for a period of one month. Funds cannot be withdrawn earlier than the one-month expiration without penalty. IRA CDs [...]
Continue Reading →A 1-month jumbo CD is a large savings instrument, usually with a minimum value of $100,000, that pays a fixed rate of interest and remains in effect for a period of one month. Funds cannot be withdrawn earlier than the one-month expiration without penalty. Jumbo CDs are considered a slightly higher risk [...]
Continue Reading →A 1-month jumbo IRA CD (certificate of deposit) is a savings instrument held within a tax-advantaged Individual Retirement Account (IRA). The deposit pays a fixed rate of interest and remains in effect for a period of one month. The term “jumbo” refers to the deposit’s minimum denomination, which is usually $100,000. [...]
Continue Reading →1-month LIBOR (London Interbank Offered Rate) rate is the stated rate of interest at which banks in the London wholesale money markets may borrow funds from one another for one month. The British Bankers’ Association resets the 1-month LIBOR daily, based on an average of global interbank deposit rates. LIBOR rates tend [...]
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