Suggestion by Spedidiot on 2008-11-05 21:36:14
Payments can be calculated with the use of an amortization table, where it breaks down how much is attributable to principle and interest, and the payoff timeline. Amortization schedules will adjust according to the terms. For instance,the standard schedule is "fixed", where the payment remains the same, the principal paydown gradually increases while the money towards interest decreases. There is also interest only, where the borrow only pays interest for a period of time, then at the end of the mortgage loan, there's one big "balloon" payment. As well as an adjustable, where the interest rate might be fixed for two years, so payments would be fixed, then it would be adjustable after those two years (the term length of the fixed period varies). There are other, more complicated, schedules of payment as well.
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I noticed this article not too long ago: Mortgage Rescission Could Be Class Action Nightmare for U.S. Banks. Obviously there's tons of factors affecting this market, but this is something to keep an eye on. It might be somewhat beneficial for the mortgage insurance companies, though. ImperfectlyInformed 13:07, June 4, 2009 (PDT)