The turn of events came after the lender, Bank of America Corp., employed an unusual tactic that is being used on occasion to help some debt-strapped seniors locked into exotic mortgages known as.
An exotic mortgage is a type of home loan that offers lower monthly payments in the first few years but is considered high-risk because of its difficult-to-understand terms and higher future payments.
Teaser Interest Rate Interest Only Refinance caliber home loans fined for allegedly steering struggling homeowners into risky mortgage modifications – Caliber Home Loans will pay a $2 million fine and hand out an unknown. According to Healey’s office, Caliber “favored” short-term, interest-only mortgage modifications rather than permanent ones,For an adjustable-rate mortgage, the index is a benchmark interest rate that reflects general market conditions and the margin is a number set by your lender when you apply for your loan. The index and margin are added together to become your interest rate when your initial rate expires.
An exotic mortgage can help buyers get into higher-priced properties. bankrate’ s Doug Whiteman defines the term exotic mortgage and shares there are risks for both the borrower and lender with. Reverse mortgages are a unique type of loan. Unique is a word that is thrown around a great deal, particularly when describing financial products.
Exotic Mortgages – Schell Co USA – An exotic mortgage is a type of home loan that offers lower monthly payments in the first few years but is considered high-risk because of its difficult-to-understand terms and higher future payments.
Piggy Back Mortgages A piggy back was when you closed a first and second loan together to get a higher loan-to-value, or LTV, than you could get with one loan by itself. So if you could afford a down payment of 10%, you would take one loan for 80% and another for 10% of the purchase price.