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Equity linked mortgage |
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Equity linked mortgageThe lender takes ownership of a stake in the equity of the property. This means that they lend you less than the full amount that is required to buy the home. Interest is only charged on the amount that they lend you and not on the full value of the property. When you sell the property, the lender receives payment in proportion to the amount of equity that they own, and therefore benefits from any increase in the price of the property.Equity linked mortgage Similar MatchesShared appreciation mortgageShared appreciation mortgageA mortgage in which a borrower pays a below normal rate of interest to the lender on the understanding that the latter shares a proportion of the appreciation of the property. Government National Mortgage Association (Ginnie Mae)Government National Mortgage Association (Ginnie Mae)A wholly owned U.S. government corporation within the Department of Housing & Urban Development. Ginnie Mae guarantees the timely payment of principal and interest on securities issued by approved servicers that are collateralized by FHA-issued, VA-guaranteed, or Farmers Home Administration (FmHA)-guaranteed mortgages. Repayment mortgageRepayment mortgageA mortgage where throughout the term, regular payments (usually monthly) are made to partly repay interest on the capital and to partly repay the capital itself (the amount of the loan).Initially the largest proportion of the repayments will be used to pay interest since the capital amount outstanding is at its highest value. Therefore over the initial years the capital will not reduce very much. However as the years proceed more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.In the event that interest rates rise then often the monthly repayments will rise accordingly. Alternatively, to keep the same monthly repayments the term will need to be extended. If interest rates fall then the reverse applies. It is usually a requirement of the lender (that is, a building society or bank) providing the mortgage that the borrower takes out life assurance so that repayment is made in the event of his/her death during the term. Self amortizing mortgageSelf amortizing mortgageMortgage whose entire principal is paid off in a specified period of time with regular interest and principal payments. Federal National Mortgage AssociationFederal National Mortgage AssociationIn the US, a government-backed corporation which purchases mortgages from lenders and resells them to investors. It is financed by the issue of debt securities. Equity shares, known as Fannie Maes, are traded on the New York Stock Exchange. Further Suggestionsadjustable rate mortgageinterest only mortgage H Hard Money Mortgage mortgage interest deduction Mortgage broker Mortgage pipeline risk MIG Mortgage Indemnity Guarantee biweekly mortgage loan Mortgage REIT Consolidated mortgage bond Mortgage application Flexible mortgage Standing mortgage Mortgage deed Secondary mortgage market Adjustable Rate Mortgages (arms) Guarantee mortgage reverse annuity mortgage Freddie Mac (Federal Home Loan Mortgage Corporation) variable rate mortgage Gnma (government National Mortgage Association) Options Mortgage pipeline Foreign currency mortgage Alternative mortgage instruments Federal National Mortgage Association |
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