Real Estate Definitions

How mortgages with variable rates work and their strengths and weaknesses.

Definition of conventional mortgages, which include fixed rate and adjustable rate mortgages.

How the Fed funds rate dictates adjustable-rate mortgages interest rates.

Mortgages with fixed interest rates and their benefits.

A definition of interest rate, including central bank interest rates, and how they impact the U.S. economy.

A definition of mortgages whose payment goes only against the interest portion.

When short-term Treasury yields are larger than long-term yields, and how that affects the mortgage market.

Defines these important investments that changed the housing market and led to the 2008 financial crisis.

Specialized loans that were designed to make homeownership affordable.

Some blame overbuilding by new home builders for causing the housing bubble that created the recession. Find out why.

The first step in buying a new home.

When ground is broken for a new home.

A broad term which includes residential, commercial, and industrial properties as well as vacant land.

Banks that specialized in mortgages.

How mortgages are sold by the banks to investors.

Mortgages that are granted to borrowers with less than perfect credit.

The shadow inventory of foreclosed or soon to be foreclosed homes threatens the housing market recovery.

Mortgages are a type of bond. Therefore, they compete with other types of bonds for investors. As a result, when interest rates change on bonds, especially Treasury bonds, it will affect mortgage interest rates. Find out how this works, and how it affects you.