Mortgage Origination and Discount Points: Understanding the Basics
What Are Mortgage Points? A mortgage point is a percentage-based fee paid at closing. Each point is equivalent to 1 percent of your total loan amount. For example, on a…
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Loan
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What is securitization and why is it used?
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate…
The 10 Best Municipal Bond ETFs In 2022
Coming up with a list of the best bond ETFs for 2022 may at first seem like it would include only funds that can perform well in an inflationary, rising-rate…
What Is a Maximum Loan Amount?
The maximum loan amount is the highest amount that your lender authorizes to you. This loan amount applies to standard loans, credit cards, and even line-of-credit accounts. Several factors are taken into…
Effective Annual Interest Rate: Definition, Formula, and Example
What is the Effective Annual Interest Rate? The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over a given period. Simply put, the effective annual interest…