Buydown of Mortgage - Pay less interest

When someone's buying down your mortgage is typically what we're referring to is a seller or it could be a home builder or something like that, they're paying the lender happens to be to reduce the buyer's interest rate for a set per…


What is Wraparound Mortgages?

A wraparound mortgage is a type of seller financing, the person selling the home pays the early mortgage payments, and later these payments can be paid by the new buyer of the home. So the seller still owes money to the bank on their mortgage that&#…


Shared Appreciation Mortgage (SAM)

A Shared Appreciation Mortgage (SAM) is any mortgage in which the lender writes to the bank or whatever organization doing the lending gets a portion or a percentage of any increase in the property's value. So if the property is a home and the h…


What is Balloon Mortgage?

What is Balloon Mortgage? Today we're talking about balloon, what exactly is balloon loan? You might be thinking about a vision of your mind about a balloon exploding or popping that's what I always think about whenever I think about a ballo…


What is Negative Amortization?

What is Negative Amortization? Negative amortization is something that happens with loans. So it's when you borrow money and if for some reason your monthly payment is less than the interest that you occurred for that month or for that period, t…


Graduated Payment Mortgage Loan (GPM)

Here we're gonna talk about graduated payment mortgages which are sometimes abbreviated as GPM. So a graduated-payment mortgage is a mortgage in which the payments are going to gradually increase or step up over time. So for example in the first…


Introduction to Mortgages

A mortgage is just a loan in which real estate is serving as the collateral for the loan. So you decide that you want to purchase a home, for example, and you put the home off the real estate as collateral to the lender. So who's the lender? Wel…

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