Paydown Magic


Definition of "Pay-Down Magic"

Belief that there is a special way to pay down the balance of a home mortgage faster, if you know the secret.

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Popular Real Estate Terms

Loan Amount

The amount the borrower promises to repay, as set forth in the loan contract. The loan amount may exceed the original amount requested by the borrowe ...

Payment Period

The period over which the borrower is obliged to make payments. On most mortgages, the payment period is a month but on some it is biweekly. It is no ...

Interest Rate Adjustment Period

The frequency of rate adjustments on an ARM after the initial rate period is over. The rate adjustment period is sometimes but not always the same as ...

Mortgage Payment

The payment of principal and interest made by the borrower. ...

Worst-Case Scenario

On an ARM, the assumption that the interest rate rises to the maximum extent permitted by the loan contract. ...

Qualification Rate

The interest rate used in calculating the initial mortgage payment in qualifying a borrower. The rate used in qualifying borrowers may or may not be ...

Popular Real Estate FAQ

What Is A Maintenance Fee?

A maintenance fee is a charge by condominium associations, co-ops, or other homeowners associations for the upkeep of the property. ...

What Is A Front-end Ratio?

A front-end ratio is a ratio of the borrowers monthly housing expenses-including principal, interest, property taxes, and insurance (OITI)-compared to ...

I Need Hospital Insurance In Addition To My Current Health Insurance Policy?

Depending upon the coverage being applied. Review the policy provision with your agent for additional information. ...

What Is A Housing Ratio?

A housing ratio is the percentage of your housing payment (principal, interest, taxes, and insurance) to your monthly gross income. Lenders use this r ...

What Is Cooperative?

Cooperative is a form of home ownership in which you own shares in a corporation. In return for the purchase of shares, you are allowed to live in a u ...

Do I Need Flood Insurance?

Over 90% of all presidential-declared disasters in the United States are flood related. Leveling forests, overbuilding the land, and increasing use of ...

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