1) two persons caught 36 fishes. X caught 8 times of Y. Then how many Y caught?

X+Y=36 => 8y + y =36 => y=4 ans : 4 2)they given 5 figures : like square, rectangle, triangle, parallelogram etc. Ans Clue : All the figures r having 4 side except one.( Ans : that is triangle). 3) they give something $2490 and they asking 33 1/3 %..? 2490* 100/3 = 83000 ans: 83000 4) they given 5 figures like circle, plus symbol etc. Ans clue: all the figues maded using line except Circle.( ans : Circle ) 5) odd man out : 1/4 1/8 1/8 1/4 1/8 1/8 1/4 1/6 ans : 1/6 6) if the first two statements are true then the third one is: A greets B. B greets C. A does not greet C 1) true 2) false 3) not certain Ans: 1 ( true) 7) stretch : spread --- Do u means 1) both r same 2) both r opposites 3) contradiction etc. I written (1 ) is answer. 1. The last month of the year is January March July December October 2. CAPTURE is the opposite of Place Release Risk Venture Degrade 3. Most of the items below resemble each other. Which one is least like the othe rs? January August Wednesday October December 4. Answer by printing YES or NO - Does R.S.V.P. mean "reply not necessary"? 5. In the following set of words which word is different from the others? Troop League Participate Pack Group 6. USUAL is the opposite of Rare Habitual Regular Staunch Always 7. Which figure can be made from the two figures in brackets? 8. Look at the row of numbers. What number should come next? 8 4 2 1 1/2 1/4 ?.....1/8

These boys are active. 18. How much will half dozen cost? 20 16.Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 20. A dealer bought some barrels for $4. Is the final one: True False Not certain? John is the same age as sally. Is the final one: True False Not certain? These boys are normal children. When the boy is 8 year s old. will his sister be? 13 19. CLIENT CUSTOMER .000. Which word is related to nose as chew is to teeth? Sweet Stink Odor Smell Clean 11. Arrange the following words so that they make a true statement. Assume the first 2 statements are true. All normal children are active. John is younger than bill.Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 10. A plane travels 300 feet in half second. Sally is younger than bill. b Always A verb sentence a has. How many of the five pairs listed below are exact duplicates? 2 84721 84721 9210651 92110561 14201201 14210210 96101101 96101161 88884444 88884444 17. She sold them for $5. A boy is 5 years old and his sisters is twice as old. making $5 . REMOTE is the opposite of Secluded Near Far Hasty Exact 15. 21. At this same speed. 14. IT'S ITS . Assume the first 2 statements are true. Lemon candies sell at 3 fro 10 cents. AUTUMN is the opposite of Vacation Summer Spring Winter Fall 12.9. how many feet w ill it travel in 10 seconds? 6000ft 13.000. Print the la st letter of the last word as the answer.

CANVASS CANVAS .0625 38. Which ones are they? Many a good cow hath a bad calf. Some of the people in this room are students.125 ?. Like father. A miss is as good as a mile. completely filled. Does P. Some of the people in this room take tests.5 . 32. X caught 5 times as many as Y. on Wednesday. A person is known by the company he keeps. Two men caught 36 fish. A skirt requires 2-1/4 yards of material.Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 26. If it is a true statement.Do these words Have similar meanings(not sure) Have contradictory meanings Mean neither the same nor opposite? 34. How many fish did Y c atch? 6 30. like son. mean post meridien? 33.Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 29. Answer this question by printing YES or NO. What was his average daily savings? 1/30 28.0 on each barrel.M. 0. A rectangular bin. What is the next number in this series? 1 . how much did it lose in half hour? 36. how deep is it? 10 31. They are seeds out of the same bowl. At that same rate. A watch lost 1 minute 18 seconds in 39 days. 27. At 2 P. it wa s 25 seconds slow. In 30 days a boy saved $1. Are the meanings of the following sentences Similar Contradictory Neither similar nor contradictory? A new broom sweeps clean. Eggs lay all chickens F 23. How many seconds did it lose pe r day? 25. How many barrels were involved? 22. What should that number be? 1/2 1/4 1/6 1/8 1/9 1/12. Two of the following proverbs have similar meanings. If the bin is 8 feet wide and 10 feet long.M. This was 3/8 of all they played. INGENIOUS INGENUOUS.00. if false. put a (T) in the brackets. One number in the following series does not fit in with the pattern set by t he others. How many skirts can be cut from 45 yards? 35. holds 800 cubic feet of grain. Arrange the following words so that they make a complete sentence. 24. Old shoes are easiest. How many games did they play this season?15 37. Assume the first 2 statements are true. Our baseball team lost 9 games this season. A clock was exactly on time at noon on Monday. Is the final one: True False Not certain? All students take tests. CREDITABLE CREDULOUS . put an (F) in the bracket s. .25 .

which word is different from the others? Colony Companion Covey Crew Constellation 45.D. a printed page contains 1.O. The article is allotted 22 pages in a ma gazine. J.80 a frocer buys a case of fruit which contains 12 dozen. In the following set of words.these round is not mandatory.so they se lcted me for the next round 2. J.39. I am a great person. Siegel. Richards. If the profits are $1 . Three individuals form a partnership and agree to divide the profits equally .these are few questions wat they asked me. Which number in the following group of numbers represhents the smallest amou nt? 10 1 . Honesty is praised and starves. You cannot damage a wrecked ship. A. M.s ame models or even same questions also. 40.500. Assume the first 2 statements are true. In printing an article of 30.500 words. He that steals an egg will steal an ox. W. A. 42. 46. She knows t hat two dozen will spoil before she sells them.000. Are the meanings of the following sentences Similar Contradictory Neither similar nor contradictory?(not sure) No honest person ever apologized for their honesty. how much less does X receive than if the profits were divided in proportio n to the amount invested? 47.500 and Z invests $2. How many of the five pairs listed below are exact duplicates? 1 Rexford. W.B. I am ridiculed. Wood. Is the final one: True False Not certain? Great people are ridiculed. a page contains 1.E. Two of the following proverbs have similar meanings.in this round they will ask only about ur profile and project and why to join here etc 3. A.if u get more than 35 its enough u will b e selected for next round. Simbleten.500.and then they conducted written test twice for the rst because their score is around 20-25. Wood.1st round is mandatory for any fresher or experienced candidate.200 words.technical round: .E. Using the sma ller type. It is the impossible that happens.O.B. How many pages must be in the smaller type? ya . Seigel.O.O.000 words a printer decides to use two sizes of type.most of them will be repititive. X invests $4. Using the larger type.33 11. Rockford. 43.D.and ours is more than 40. A rolling stone gathers no moss. Which ones are they? You cannot make a silk purse out of a sow's ear.communication round: this round is simply to check ur speaking skills and confidence.999 . 41. A. M. Y invests $3. Richard.actually on the day of my interview they conducted wri tten and selected 3 of us from 30. At what price per dozel must she sell the good ones to gain half of the whole cost? 44. Singleton. For $1.

it s my 10th interview and god is great as he gave me nice oppurtunity. I written (1 ) is answer.? 2490* 100/3 = 83000 ans: 83000 4) they given 5 figures like circle. B gre ets C. parallelogram etc. X caught 8 times of Y.and this round includes few no.and H. Ans clue: all the figues maded using line except Circle.R round. plus symbol etc. rectangle.ok..because if they cant judge u in technical rou nd .they asked me about basics in networking.and he told me a bout job profile and then he asked me to wait in the reception.( ans : Circle ) 5) odd man out : 1/4 1/8 1/8 1/4 1/8 1/8 1/4 1/6 ans : 1/6 6) if the first two statements are true then the third one is: A greets B.see you at Ocwen soluti ons.dont worry be courage. triangle. A does not greet C 1) true 2) false 3) not certain . 4.bye 1) two persons caught 36 fishes. A does not greet C 1) true 2) false 3) not certain Ans: 1 ( true) 7) stretch : spread --. Finally they selected 3 of us from that round and they conducted next r ound.( Ans : that is triangle).he conducted it as H.thanks to god and my parents who encouraged me a lot and to my friends cum well wishers.Do u means 1) both r same 2) both r opposites 3) contradiction etc.? 2490* 100/3 = 83000 ans: 83000 4) They given 5 figures like circle. Ans clue: all the figures maded using line except Circle. parallelogram etc.Tech experiences ans how i njoyed. 3) they give something $2490 and they asking 33 1/3 %. Then how many Y caught? X+Y=36 => 8y + y =36 => y=4 ans : 4 2)They given 5 figures : like square. plus symbol etc. Then how many Y caught? X+Y=36 => 8y + y =36 => y=4 ans : 4 2)they given 5 figures : like square. rectangle.R cum managerial round: it is very important round.( ans : Circle ) 5) odd man out : 1/4 1/8 1/8 1/4 1/8 1/8 1/4 1/6 ans : 1/6 6) if the first two statements are true then the third one is: A greets B.he asked me my B. 1) two persons caught 36 fishes.then they go for this round.H. 3) they give something $2490 and they asking 33 1/3 %.company is g ood and ctc is too good.of puzzles my interview was conducted at 8pm and finally they selected me out of 30 its very great and amazing feeling to me when they gave me offer letter.R is very cool. triangle. Ans Clue : All the figures r having 4 side except one.( Ans : that is triangle). B greets C. X caught 8 times of Y. Ans Clue : All the figures r having 4 side except one.

Ans Clue : All the figures r having 4 side except one.( Ans : that is triangle). rectangle. either dir ectly or indirectly through intermediaries.[2] . In countries where the demand for home ownership is highest. Indonesia being one exception[1]).( ans : Circle ) 5) odd man out : 1/4 1/8 1/8 1/4 1/8 1/8 1/4 1/6 ans : 1/6 6) if the first two statements are true then the third one is: A greets B. such as a bank. Features of mortgage loans such as t he size of the loan. Ans clue: all the figures maded using line except Circle. triangle. plus symbol etc. though not all (Bali. In many jurisdictions.Do u means 1) both r same 2) both r opposites 3) contradiction 1) two persons caught 36 fishes. A does not greet C 1) true 2) false 3) not certain Ans: 1 ( true) 7) stretch : spread --. parallelogram etc. X caught 8 times of Y.Do u means 1) both r same 2) both r opposites 3) contradiction A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and theencumbrance of that realt y through the granting of a mortgage which secures the loan. maturity of the loan. the word m ortgage alone. strong domestic markets have developed. interest rate. is most often used to mean mortgage loan. B gre ets C. and other characteristics can vary considerably. method of paying off t he loan. A home buyer or builder can obtain financing (a loan) either to purchase or secu re against the property from a financial institution.Ans: 1 ( true) 7) stretch : spread --." apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the prop erty is taken through foreclosure.? 2490* 100/3 = 83000 ans: 83000 4) They given 5 figures like circle. 3) they give something $2490 and they asking 33 1/3 %. Then how many Y caught? X+Y=36 => 8y + y =36 => y=4 ans : 4 2)They given 5 figures : like square. Few individuals have enough savings or liquid funds to enable them to purchase property outrigh t. in everyday usage. However. it is normal for home purchases to be funded by a mortgage loan. The word mortgage is a Law French term meaning "dead pledge.

either directly (through legal requirements. which may or may not include certain o ther costs. sell the mortgage loan to other partie s who are interested in receiving the stream of cash payments from the borrower. the loan is arguably no different from any othe r type of loan. Lenders m ay also be investors who own an interest in the mortgage through a mortgage-back ed security. by taking deposits or issuing bonds). Lenders provide funds against property to earn interest income. The most basic arrangement would require a fixed monthly pay ment over a period of ten to thirty years. Although the terminology and precise forms will differ from country to country. such as the b anking industry). the word mortgage h as become the generic term for a loan secured by such real property. Mortgage loans are generally structured as long-term loans. Lenders may also. and generally bo rrow these funds themselves (for example. mortgages have an interest rate and are scheduled to amortize over a set period of time. The payments from the borrower are thereafter collected by a loan servicer. Restrictions may include re quirements to purchasehome insurance and mortgage insurance. The price at which the lenders borrow money therefore affects the cost of borrow ing. typically 30 years. the principal will go down in size. depending on local conditions. Other aspec ts that define a specific mortgage market may be regional. but bec ause most mortgages occur as a condition for new loan money. All types of real pro perty can be. the periodic payment s for which are similar to an annuity and calculated according to the time value of money formulae. a mortgage occurs when an owner (usual ly of a fee simple interest in realty) pledges his interest (right to the proper ty) as security or collateralfor a loan. Mortgage: the security interest of the lender in the property. In such a situation. or pay off outstand ing debt before selling the property. Therefore. Foreclosure or repossession: the possibility that the lender has to foreclose. often in the form of a security (by means of a securitization). and may restrict the types of lending that are p ossible. Mortgage lending is the primary mechanism used in many countries to finance priv ate ownership of residential and commercial property (see commercial mortgages). but usually a bank or other financial institution.[edit]Mortgage loan basics [edit]Basic concepts and legal regulation According to Anglo-American property law. Over t his period the principal component of the loan (the original loan) would be slow ly paid down through amortization. The exact form of ownership wil l vary from country to country. the initial lender is known as the mortgage or iginator.[4] Principal: the original size of the loan. Many other specific characteristics are common to many markets. by state-owned banks. secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk. Interest: a financial charge for use of the lender's money. or sponsorship of various entities). in many countries. many variants are possible and c ommon worldwide and within each country. and usually are. In practice.[3] As with other types of loans. which may entail restrictions on the use or disposal of the property. r epossess or seize the property under certain circumstances is essential to a mor tgage loan. the basic components tend to be similar: Property: the physical residence being financed. Mortgage lending will also take into account the (perceived) riskiness of the mo . but the above ar e the essential features. which then packages and sells the loan to investors. for example) or indirectly (through regulation of the participants or the financial markets. Governments usually regulate many aspects of mortgage lending. Lender: any lender. or driven by specific characteristics of the legal or financial system. a mortgage is an encumbrance (limitation) on the right to the property just as an easement would be. Borrower: the person borrowing who either has or is creating an ownership intere st in the property. without this aspect. as any principal is repaid. historical. and often through state intervention (direct lending by the go vernment.

the likelihood that the funds will be repaid (usually cons idered a function of the creditworthiness of the borrower). This downpayment may be expressed as a portion of the value of the property (see below for a definition of this term). [edit]Mortgage loan types There are many types of mortgages used worldwide. payments for principal and interest should not change o ver the life of the loan. Some mortgage loans may have no amortization. be highe r or lower.rtgage loan. after which it will periodically (for example. the number of years after which an amortizing loan will be repaid.5% to 2% lower than the average 30-year fixed rate. the interest rate is generally fixed for a perio d of time. debt-to-income. altho ugh ancillary costs (such as property taxes and insurance) can and do change. In a fixed rate mortgage. Therefore the payment is fixed. Other innovations described below can affect the rates as well. and thus are widely used where fixed rate funding is difficult to obtain or prohibitively expensive. and vary after the end of that period. the lender will be able to foreclose and recoup some or all of its orig inal capital. Since the risk is transferred to the borrower. Combinations of fixed an d floating rate are also common. or even negative amortization. Fo r a fixed rate mortgage. Payment amount and frequency: the amount paid per period and the frequency of pa yments. Adjustable rates transfer part of the int erest rate risk from the lender to the borrower. the size of the price different ial will be related to debt market conditions. that is. remains fixed for the life (or term) of the loan. that if they are not repaid. [edit]Mortgage underwriting Main article: Mortgage underwriting [edit]Loan to value and downpayments Main article: Loan-to-value ratio Upon making a mortgage loan for the purchase of a property. or require payment of a penalty to the lender for prepayme nt. In many countries (such as the United States). lenders usually requ ire that the borrower make a downpayment. The two basic types of amortized loans are the fixed rate mortgage (FRM) and adj ustable-rate mortgage (ARM) (also known as a floating rate or variable rate mort gage). in some cases. In an adjustable rate mortgage. Jumbo mortgages and subprime lending are not supported by government guarantees and face higher inte rest rates. of course. Interest: interest may be fixed for the life of the loan or variable. but several factors broadly de fine the characteristics of the mortgage. The charge to the borrower depends upon the credit risk in addition to the inter est rate risk. whereby a mortgage loan will have a fixed rate for some period. or require full repayment of any remaining balance at a certain da te. and change at certain pre-defined periods. the interest rate. contribute a portion of the c ost of the property. All of these may be subject to local r egulation and legal requirements. Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan. and the financial. the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid. that is. that is. the initial interest rate may be from 0. The mortgage origination and underwriting process involves checki ng credit scores. The loan to value ra . interest rate risk and time delays that may be involved in certain circumstances. and assets. floating rate mortgages ar e the norm and will simply be referred to as mortgages. annually or monthly) a djust up or down to some market index. Term: mortgage loans generally have a maximum term. including the yield curve. downpayments. the interest rate can also. and hence periodic payment.

or market practice. Many countries have similar concepts or agencies that d efine what are "standard" mortgages. Actual or transaction value: this is usually taken to be the purchase pr ice of the property. determining the value is a key factor in mortgage lending. lenders who decide to make nonconforming loans are e xercising a higher risk tolerance and do so knowing that they face more challeng e in reselling the loan. If the property is not being purchased at the time of borro wing. In contrast. In other words. may a ffect the price at which it may be sold. banks and mortgage brokerages in Canada face restrictions on lending more tha . includin g mortgage payments. particularly in jurisdictions where no official appraisal procedure exis ts. but also in some other circumstances. Many countries have lower requirements for certain borrowers. There is often a requireme nt for the lender to obtain an official appraisal. etc. Appraised or surveyed value: in most jurisdictions. but the most common are: 1. a number of more or less standard measures of creditworthines s may be used. The loan to value ratio is considered an important indicator of the riskiness of a mortgage loan: the higher the LTV. if non-standard. taxes. which may be formal or informal. the higher the risk that the value of the property (in case of foreclosure) will be insufficient to cover the remaining pr incipal of the loan. estimated. etc. A standard or conforming mortgage is a key concept as it often defines whether o r not the mortgage can be easily sold or securitized. the specifics will vary from locati on to location. and various net worth measures. Common measures include payment to income (mortgage payments as a percentage of gross or net income). [edit]Value: appraised. or. [edit]Standard or conforming mortgages Many countries have a notion of standard or conforming mortgages that define a p erceived acceptable level of risk. some form of apprais al of the value by a licensed professional is common. The val ue may be determined in various ways. a mortgage loan in which the purchaser has made a downpayment of 20% has a lo an to value ratio of 80%. In the United States. such as income tax returns. credit scoresare used in lieu of or to supplement these meas ures. Therefor e. a conforming mort gage is one which meets the established rules and procedures of the two major go vernment-sponsored entities in the housing finance market (including some legal requirements). For loans made against properties that the borrower al ready owns. or "no-doc" / "low -doc" lending standards that may be acceptable in certain circumstances. this information may not be available. and actual Since the value of the property is an important factor in understanding the risk of the loan. For example. There will also be requirements for documentation of the creditworthiness. government intervention. 3. the loan to value ratio will be imputed against the estimated value of the property. debt to income (all debt payments. the borrower may be required to show t he availability of enough assets to pay for the housing costs (including mortgag e. pay stubs. For exampl e. and may be r einforced by laws. Estimated value: lenders or other parties may use their own internal est imates. [edit]Payment and debt ratios In most countries. as a percentage of income). 2. a s tandard mortgage may be considered to be one with no more than 70-80% LTV and no more than one-third of gross income going to mortgage debt.tio (or LTV) is the size of the loan against the value of the property. In many countries. Some lenders may also require a potential borrower have one or more months of "r eserve assets" available. Regulated lenders (such as banks) may be su bject to limits or higher risk weightings for non-standard mortgages.) for a period of time in the event of the job loss or other loss of income.

This is commonly referr ed to as (self)amortization in the U. which are typically made monthly. there are variations inhow that cost is paid. There are also various mortgage repayment structures to suit different types of borrow er. Depending on the size of the loan and the prevailing practice in the country the term may be short (10 years) or long (50 years plus). and how the loan itself i s repaid. Until recently it was not uncommon for interest only mortgages to be arranged wi . This give s borrowers assurance that by maintaining repayment the loan will be cleared at a specified date. enabling lenders to lend in a stable foreign currency. A mortgage is a form of annuity (from the perspective of the lender).[5] [edit]Foreign currency mortgage In some countries with currencies that tend to depreciate. In the UK and U. Th ere may be legal restrictions on certain matters. The amo unt of capital included in each payment varies throughout the term of the mortga ge. mortgage insurance is generally required. tax laws and prevailing culture. if the interest rate does not change. and as a repayment mortgage in the UK. for example.S. interest may becompounded daily. [edit]Capital and interest The most common way to repay a loan is to make regular payments of the capital ( also called the principal) and interest over a set term. Towards the end of the mortgage the payments are mostly capital and a small er portion interest. and other factors. Repayment depends on locality. such as 15-year m ortgage loans. 25 to 30 years is the usual maximum term (although shorter periods. Individual Savings Account (ISA) mortg age or pension mortgage. especially when associated with a regular investment plan. or semi-annually. similar ly a Personal Equity Plan (PEP) mortgage. With this arrangement regular contributions are made to a separate investment p lan designed to build up a lump sum to repay the mortgage at maturity. and consumer protection laws m ay specify or prohibit certain practices. [edit]Interest only The main alternative to a capital and interest mortgage is an interest-only mort gage. Mortgage payments. beyond this level. yearly. contain a capital (repayment of the principal) and an interest element. Certain details may be specific to different locations: interest may be calculat ed on the basis of a 360-day year. where the capital is not repaid throughout the term. Investment-backed mortgages are seen as higher risk as they are depen dent on the investment making sufficient return to clear the debt. In this way the payment amount determined at outset is calc ulated to ensure the loan is repaid at a specified date in the future. This type of mortgage is common in the UK. Historically.S. prepayment penalties may apply. foreign currency mort gages are common. This type of arrangement is called an investment-backed mortgage or is often related to t he type of plan used: endowment mortgage if an endowment policy is used. In the early years the repayments are largely interest and a small part capi tal.. [edit]Repaying the mortgage In addition to the two standard means of setting the cost of a mortgage loan (fi xed at a set interest rate for the term. although this is no longer the case in the UK. whilst the borrower takes on thecurrency risk that the currency will depreciate and the y will therefore need to convert higher amounts of the domestic currency to repa y the loan. or variable relative to market interest rates). investment-backed mortgages offered vario us tax advantages over repayment mortgages.n 80% of the property value. are common). and the cal culation of the periodic payments is based on the time value of money formulas.

[8] Homeowners can also take out equity loans in which they receive cash for a mortgage debt on their house. Bridge loans may be used as temporary financing pending a longer-term l oan. a par t repayment mortgage is quite common. Balloon payment mortgages have only partial amortization. In the US. hence the age restri ction. Builders may take out blanket loans which cover several properties at once. depending on the country. When interest rates are high relative to the rate on an existin g seller's loan. and at the end of the term a balloon payment is due. but the outst anding capital balance is due at some point short of that term.[7] package loa ns add the costs of furnishings and other personal property to the mortgage. In the UK. Shared appreciation mortgages are a form of equity release.[6] A wra paround mortgage is a form of seller financing that can make it easier for a sel ler to sell a property. especially where the original mortgage was investment-backed and on moving house further borrowing is arranged on a capita l and interest (repayment) basis. i n the UK there is also the endowment mortgage where the borrowers pay interest w hile the principal is paid with a life insurance policy. Hard money loans provide financing in exchange for the mortgaging of real e state collateral. meaning that amount of monthly payments due are calculated (amortized) over a certain term. the property may then be sold. increasing the debt each year.occur. [edit]No capital or interest For older borrowers (typically in retirement). Any amounts received fro . it may be possible to arrange a m ortgage where neither the capital nor interest is repaid.principally. lifetime mortgages or equity release mortgages (referring to home equity). These arrangements are variously called reverse mortgages. [edit]Foreclosure and non-recourse lending Main article: foreclosure In most jurisdictions. For further details. and contrac ts than personal loans. a partial amortization or balloon loan is one where the amount of mo nthly payments due are calculated (amortized) over a certain term. Subject to l ocal legal requirements. a lender may foreclose the mortgaged property if certain conditions . The interest is rolled up with the capital. Flexible mortgages allow for more freedom by the borrower to skip payments or pr epay. Budget loans include taxes and insurance in the mortgage payment.S. A biweekly mortgage has payments made every two weeks in stead of monthly. Buy down mortgages allow the seller or lender to pay something similar to mortgage p oints to reduce interest rate and encourage buyers. Commercial mortgages typically have different interest rates. Offset mortgages allow deposits to be counted against the mortgage loan. risks. The loans are typically not repaid until the borrowers die. Participation mortgages allow multiple investors to shar e in a loan. with the borrower gambling that the property market w ill rise sufficiently for the loan to be repaid by trading down at retirement (o r when rent on the property and inflation combine to surpass the interest rate). [edit]Variations Graduated payment mortgage loan have increasing costs over time and are geared t o young borrowers who expect wage increases over time.thout a repayment vehicle. the buyer can consider assuming the seller's mortgage. but the outstanding principal balan ce is due at some point short of that term. see equity release. [edit]Interest and partial capital In the U. foreign n ationals due to their unique situation face Foreign National mortgage conditions . non-payment of the mortgage loan .

and mortgage market development has been notably slower.[1 0] [edit]Recent trends Mortgage Rates Historical Trends 1986 to 2010 . In other jurisdictions.[10] [edit]Costs A study issued by the UN Economic Commission for Europe compared German. the borrower remains responsible for any remaining debt. There are strict or judicial foreclosures and non-judicial foreclosures. an acquisition fee is charged which amounts to one per cent of the principal.5 per cent of the outstanding debt. mortgage banks reached 35 per cent of the pop ulation in 2002. the US instituti ons Fannie Mae and Freddie Mac together reached one per cent of the national pop ulation. the ability of lenders to foreclose is extrem ely limited. Furthermore. Pfandbrief-like securities have be en introduced in more than 25 European countries – and in recent years also in the U. In virtually all jurisdictions. a wider mar ket has been achieved: In Denmark. In addition.m the sale (net of costs) are applied to the original debt. 87 per cent of their purchased mortgages were granted to b orrowers in metropolitan areas with higher income levels. the average interest rates for fixed-ra te mortgages in the housing market started in the tens and twenties in the 1980s and have (as of 2004) reached about 6 per cent per annum. However. the diffusion of the concept differ: In 2000. and Danish mortgage systems. US. and other countries outside Europe – each with their own unique law and regu lations. while in others. In the United States. mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt.S. In addition. The German Bausparkassen have reported nominal interes t rates of approximately 6 per cent per annum in the last 40 years (as of 2004). gross borrow ing costs are substantially higher than the nominal interest rate and amounted f or the last 30 years to 10. they charge administration and service fees (about 1. while the German Bausparkassen achieved widespread regional dis tribution and more than 30 per cent of the German population concluded a Bauspar contract (as of 2001). Denmark. specific procedures for foreclosure and sale of the mortgaged property apply. [edit]Mortgage lending: United States Main articles: Mortgage industry of the United States and Mortgage underwriting in the United States [edit]Mortgages in the UK Main article: Mortgage industry of the United Kingdom [edit]Mortgage lending in Continental Europe Within the European Union. and may be tightly regulated by the relevant gover nment. the Covered bonds market volume (covered bonds outsta nding) amounted to about EUR 2 trillion at year-end 2007 with Germany. In many countries. In Denmark. and France each having outstandings above 200. A risk and administration fee amounts to 0. Spain. In some jurisdictions.46 per cent. similar to the United States capital market. interest rates have fallen to 6 per cent per annum. Pfandbriefe is the term applied. the lender m ay not have recourse to the borrower after foreclosure.5 per cent of the loan amount). foreclosure may take many months or even years. However.[9] In Germ an language. also known as power of sale foreclosures. In some jurisdiction s. In Europe.000 EUR million. foreclosure and sale can occur quite rapidly.

a stamp tax may be charged twice. In the event of repossession. 2008.On July 28. this may lead to a higher final price for the buyers. must resort to selling the property to recoup their original investment (the money lent). the mortgage insurance acts as a hedge should the repossessing autho rity recover less than full and fair market value for any hard asset.[19] [edit]Mortgage insurance Mortgage insurance is an insurance policy designed to protect the mortgagee (len der) from any default by the mortgagor (borrower). This is because in some countries (such as the United Kingdom and India) there is a Stamp Duty which is a tax charged by the government on a change of ownership.[17] a Danish act on mortgage credi t associations of 1850 enabled the issuing of bonds (Danish: Realkreditobligatio ner) as a means to refinance mortgage loans. and employed in the event of foreclosure an d repossession. banks. addressing also mortgage markets and providing a two page overview of curre nt mortgage systems in the EU countries. in the UK "the Government is invitin g views on options for a UK framework to deliver more affordable long-term fixed -rate mortgages. In one variation.[13] A survey of European Pfandbrief-like products was i ssued in 2005 by the Bank for International Settlements. In the United Kingdom. banks. or as a separate and itemized compon ent of monthly mortgage payment.[18] With the German mortgage banks law of 1900. It is used commonly in loans with a loan-to-value ratio over 80%.[14] the International M onetary Fund in 2007 issued a study of the covered bond markets in Germany and S pain.S. In the last case. and are able to d ispose of hard assets (such as real estate) more quickly by reductions in price. Man y other jurisdictions have similar transaction taxes on change of ownership whic h may be levied. that the p roperty has appreciated. the loan has been paid down. Because owner ship changes twice in an Islamic mortgage. or any combination of both to relegate the loan-to-value under 80%. along with four large U.[12] George Soros's October 10.[11] Similarly. [edit]Islamic mortgages Main article: Islamic economic jurisprudence The Sharia law of Islam prohibits the payment or receipt of interest. the whole German Empire was given a standardized legal foundation f or the emission of Pfandbriefe. The homebuyer. or its subsequent assigns. US Treasury Secretary Henry Paulson announced that. or in one lump sum up front. mortgage insurance can be dro pped when the lender informs the borrower.[citation needed] Typically.[20] . the ba nk will buy the house outright and then act as a landlord. Therefore. the Treasury would attempt to kick start a market for th ese securities in the United States. etc. in add ition to paying rent. the property changes hands. An account from the perspective of development e conomics is available.[16] [edit]History While the idea originated in Prussia in 1769. primarily to provide an alternative form of mortgage-backed securities. will pay a contribution towards the purchase of the proper ty. which mean s that Muslims cannot use conventional mortgages. 2008 Wall Street Journal editorial promoted the Danis h mortgage market model. However.[15] while the European Central Bank in 2003 issued a study of housing mark ets. When the last payment is made. real estate is far to o expensive for most people to buy outright using cash: Islamic mortgages solve this problem by having the property change hands twice. including the lessons to be learned from international markets and institutions". This policy is typically paid for by the borrower as a component to final nomina l (note) rate. the dual application of Stamp Duty in su ch transactions was removed in the Finance Act 2003 in order to facilitate Islam ic mortgages. investors.

at a price higher than the original price. Below are some terms explained in brief. A point is 1 percent of the loan amount. land registry. In t he United States. such as stamp duty. Both of these methods compensate the lender as if they were charging interest. Loan origination fee A charge levied by a creditor for underwriting a loan. The fee often is expressed in points. search fees. Early redemption charge / Pre-payment penalty / Redemption penalty This is the a mount of money due if the mortgage is paid in full before the time finished. Bridging loan This is a temporary loan that enables the borrower to purchase a n ew property before the borrower is able to sell another current property. etc. Disbursements These are all the fees of the solicitors and governments. this is the base interest rate set by the Bank of England. or related to more than one nation Commercial mortgage Nonrecourse debt Refinancing No Income No Asset (NINA) Annual percentage rate [edit]Related to the United Kingdom Buy to let Remortgage . equity This is the market value of the property minus all loans outstanding on i t. If a term is not explained here it may be related to thelegal mortgage rather than to the loan. Subject to contract This is an agreement between seller and buyer before the act ual contract is made. [edit]General.An alternative scheme involves the bank reselling the property according to an i nstallment plan.[citati on needed] [edit]Other terminologies Like any other legal system. First time buyer This is the term given to a person buying property who has not owned property within the last three years. b ut the loans are structured in a way that in name they are not. and the lender s hares the financial risks involved in the transaction with the homebuyer. Advance This is the money you have borrowed plus all the additional fees. Sealing fee This is a fee made when the lender releases the legal charge over th e property. this value is set by the Federal Reserve and is known as the D iscount Rate. the mortgage business sometimes uses confusing jarg on. Base rate In UK.

UK mortgage terminology [edit]Related to the United States Commercial lender (US) . how big should your mortgag e loan be? The basic rule is the annual upkeep of your property (mortgage paymen ts. eMortgages Location Efficient Mortgage . Veterans Administration.a legal concept Perfection .S.S. Read on to find which home loan is the best mortgage suited for you.S.U.MORTGAGE LOAN TYPE 1) 2) 3) 4) 5) 6) 7) Fixed Rate Mortgage The Adjustable Rate Mortgage (ARM) Interest Only Mortgage Biweekly Mortgage Two Step Mortgage Federal Housing Authority (FHA) Mortgage Veterans Affairs Loan The seller accepted your offer and the mortgage lender approved your home loan a pplication. how long do you plan to keep the house and where do y ou think mortgage interest rates are going. utilities and insurance) should not exceed 30% of your gross annual income.Relating to the U. Apply for a Fixed Rate Mortgage .a type of mortgage for urban areas Predatory mortgage lending [edit]Other nations Danish mortgage market Mortgage Investment Corporation [edit]Legal details Deed . The mortgage loan is repa id through fixed monthly payments of principal and interest over a set term. Fixed rate mortgage calculations (USA) pre-qualification .S. Fixed Rate Mortgage This is the most common type of residential home loan. In the first years of the residential loan. T he term of the home mortgage can be 10.Relating to the U. The way fixed mortgage loans are structured. The borrowing rate stays the same over the life of the residential mortgage loan. A fixed rate mortgage is ide al for those who intend to stay in their properties for a long time. mortgage terminology FHA loan . It’s only later that you will sta rt significantly building equity in your home as more of your mortgage payments go towards paying down the mortgage loan principal. 15. Finally.legal aspects Mechanics lien .U. mortgage terminology pre-approval . 20 or the popular 30 year fixed rate mortgage term. Federal Housing Administration VA loan .a term for a lender collateralizing non-residential pro perties. So what type of residential mortgage do you pick given the choices a vailable in the market today? There are quite a few considerations: What is your future earning potential. the mortgage intere st is front loaded. the bulk of the monthly payments go to paying mortgage interest.applicable legal filing requirements TYPES OF MORTGAGES .

37. Depending on the index chosen. At the beginning of the mortgage term. 49th and 61st months of the mo rtgage loan. the loan period set. during a given time period . These indexes are usually published in the newspaper. 37th. Lower payments in a low mortgage interest rates environment: A lower monthly mor tgage payment frees up your purchasing power and gives you greater financial fle xibility.50%. the mortgage rate is fixed for cer tain periods. A refinance mortgage is the process of repla cing your current mortgage with a new residential mortgage with better borrowing terms. After this period expires. quarterly. The Disadvantages Affordability: If mortgage interest rates are high. Given the certainty of your mortgage loan payment. The di fference in monthly payments is $205. L ibor and 6 month CD. After the fifth year.153. Five denotes that the period an d the borrowing rate are initially fixed for 5 years. the monthly payment would be $948. Example: the 1-year treasury bill adjustable may be converted to a fixed mortg age rate during the first five years on the adjustment date. 7 or 10 years. Meaning. An arm adjustable rate mortgage is a combination of a fixed rate mortgage and a floating rate mor tgage. if the borro wing rate is 6.27. the mortgage rate becomes adjustable. These periods could be for 3. Index: This is the market derived interest rate which is used as a base to set f uture rates of the ARM mortgage loan. High payments in a high mortgage rate environment: Nobody wants to be saddled wi th high home mortgage payments over the long term. If the mortgage intere st rate is 8. Using a 30 year fixed mortgage of $150. The home loan in this situation might not be ap proved. Th e index could be pegged to the following: Treasury Bill Rates. you can plan your finances ac cordingly. The mortgage rate the borrower pays is 5%. Components of an ARM Adjustable Rate Mortgage There are several components that go into calculating the adjustable rate of an ARM mortgage. Example: Index is based on One Year Treasury Bills 3%. the mortgage interest rate becomes adjustable. The margin is 2%. [back to top] The Adjustable Rate Mortgage (ARM) The adjustable rate mortgage is usually referred to as an ARM. the home bo rrowing rate could be adjusted monthly. you have t he option to convert during the 13th. you might have difficulty ma king the high mortgage payments. 25th.50%. semi-annually or annually. you can refinance your mortgage. you know what yo ur mortgage payment will exactly be for the whole life of the residential loan.000 as an example. The Prime Rate. When borrowing rates are lowe r.10. Apply for a Adjustable Rate Mortgage Conversion Options: Some ARM home loans come with options to convert them to a f ixed rate mortgage based on a pre-determined formula. the mortgage monthly payment would amount to $1. Margin: This is the spread added to the index to determine the actual rate charg ed to the mortgage borrower.The Advantages Stability: With your mortgage rates fixed. 5. Rate = Index Ra . A popular ARM home loan is the 5 1 ARM Mortgage.

the successive rates will be lower as interest rates go down. you will be dealing with the uncertainty associated with an ARM mortgage. Interest rates have bottomed out: By going with an adjustable rate mortgage arm at the bottom of the interest rate cycle. The initial low mortgage rate is used to attract people. If the adjustment period is one year. The highest the mortgage interest rate can go is 11% (Base Rate + Lifetime Cap). It is usually referred to as the teaser rate. Interest rates have peaked: By going with an adjustable rate mortgage arm at the peak of the interest rate cycle. this may b e the only home loan option available to you. The rate is 5%. An ar m mortgage is ideal for people who intend to stay in their homes for no more tha n 5 to 7 years. Interest only mortgage payments periods range from 1 year up to half the t erm of the mortgage loan.5 points. then the interest rate will remain fixed for one year. after which time it will adjust. since it is lower than the fu lly indexed rate. [back to top] Interest Only Mortgage An interest only home mortgage features no payments of principal made at the beg inning of the home loan. The benefits of an arm are realized at the beginning. Affordability: If current mortgage rates and housing prices are high. Your monthly mortgage payments will become less affordable. The Disadvantages Complicated to understand: Unlike a fixed rate mortgage that is simple to unders tand. After each adju stment period. The m ost you will be paying would be 1 point due to the cap. Due to the lower monthly mortgage payments. The cap can be as high as 6%.te + Margin Adjustment Period: This is the duration for which the mortgage interest rate is fixed. you will bet getting new mortgage payments. Your monthly home mortgage payments will be lower. You may have a better chance of ge tting the home loan since the lender incorporates the gross monthly income and t he monthly loan payment amount to determine how much you qualify. Example: The adjustment cap is 1 point. you qualify for a bigger resid ential loan. successive borrowing rates will likely go higher as interest rates go down. The cap is based on the inter est rate from the first year adjustment period. The index based interest rates since the last adjustment period went up 1. The monthly payments consist only of mortgage interest only. there are many variables that go into calculating adjustable rate mortgage loans. The Advantages Teaser Rate: This is the starting interest rate of the arm adjustable rate mortg age. The monthly am ount will be less with a lower interest rate so you might qualify for more. Adjustment Cap: This is the maximum the interest rate can adjust either up or do wn for each adjustment period. Uncertainty: If you plan to be at your property for more than 7 years. Interest only loan mortgages are available in adjustab . An interest only home mortgage allows you to buy more home while ke eping your monthly mortgage payments low. Not Interest Only For The Whole Mortgage Loan Term The interest only payments do not go on for the whole term of the home loan mort gage. Lifetime Cap: The maximum mortgage interest rate charged over the duration of th e arm mortgage loan.

50%. the mortgage mon thly payment jumps to $1. [back to top] Two Step Mortgage A two step mortgage is essentially a 30 year mortgage with special features: Con vertible or non-convertible. Bigger Monthly Mortgage Payments After the interest only payment is over. You get to jump on the housing bandw agon Free up cash to invest the money elsewhere: Instead of using the cash to pay dow n your mortgage principal.524. Example: 30 year fixed mortgage $175. On an annualized basis. As a resul t.75% By opting for a bi weekly mortgage payment plan for this mortgage. there is no guarantee you’ll make money. you’ll save significant amounts in mortgage interest and pay off yo ur home mortgage years earlier. Save Thousands On Mortgage Interest And Pay Off Your Mortgage Quicker A bi weekly mortgage program has you paying down your principal mortgage earlier . you can invest in other vehicles such as stocks and m utual funds to generate a superior return. you might require another loan just settle the interest only mortgage loans. The 7/23 has a fixed interest rate for the first seven years and then converts to a 23 year fixed or a 1 year adjustable. t he principal balance will be amortized over 15 years. you will begin making payments on your mortgage principal.257. [back to top] Biweekly Mortgage Mortgage payments are made every two weeks. You will be making 26 biweekly mortgage payments instead of 24 payments. As a result. you took out a 15/30 year interest only mortgage. The Advantages Lower mortgage payments: The lower monthly mortgage payments let you purchase a home where a fixed mortgage loan would not. These mortgage loans are also known as 5/25s and 7/ 23s. No guarantee of getting superior returns in other investments: If you used the m oney to generate returns in investments such as equities and mutual funds. The 5/25s has a fixed interest rate for the first five years and then switc hes to either a 25 year fixed mortgage rate or a 1 year adjustable mortgage rate .44.52 in mortgage interest.000 home loan with a mortgage borrowing rate of 6. Your mortgage will be paid off 5 years 9 months earlier.92. The Disadvantages Income Risks: There are no assurances that your income will rise fast enough to cover the higher monthly mortgage payments. Your monthly mortgage payment will go up considerably.le rate mortgage format and fixed mortgage format. the interest only monthly payment is $9 47. The starting home loan rate is lower . there are two extra payments in a year. you will be s aving $54.000 Interest Rate: 6. The amount paid is half of what your monthly mortgage payment would be. After the 15th year. For e xample. With a $175. Property Risks: Instead of the property rising fast enough to pay off your inter est only home mortgage. it could stay at current levels or even drop. When the principal payments kick in after the 15th year.

[back to top] Veterans Affairs Loan The U. Department of Housing and Urban Development (HUD). you must have served 180 active days service sin ce September 1940. The buyer still needs to meet the requirements of the current mortgage banker. This ty pe of residential mortgage is less risky than a mortgage ARM initially since the adjustment interval is longer. The best feature of an FHA loan is the low downpayment. The down payment mortgag e can be as low as 2% but you will be required to pay pmi private mortgage insur ance. usually wit h little or no down payment. However.S. The guaranty a llows veterans to get home mortgage loans with good borrowing terms. 1980 you need to have two years of service. . This feature can save a buyer significant amounts of money in m ortgage interest payments. FHA loans have lower mortgag e down payment requirements and were easier to qualify for than conventional loa ns. Veterans are not permitted to pay points to the mortgage lender on these types o f mortgage loans. it is higher than a 1-year ARM mortgage. The homebuyer takes over payment on the existing mortg age and pays the difference between the mortgage balance and the selling price. Department of Veterans Affairs guarantees mortgage loans for veterans a nd service persons. To be eligible for the VA loan. [back to top] Federal Housing Authority (FHA) Mortgage A FHA mortgage is a residential loan insured by the FHA that is part of the U.than a 30-year fixed. You can prepay a VA loan without penalty and the residential l oan is assumable. You should always verify first whether the mortgage home loan you are securing i s assumable. It does not underwrite the residential loans. T he FHA mortgage loan amounts are determined by the median prices of different ci ties within a specific region. If you enlisted after September 7. The goal of the FHA is to make housing affordable and stimulate demand. This could save you significant amounts of money and hassles. You do need to get a certificate of eligibility from the Depar tment of Veterans affairs as proof of service. FHA loans are also assumable so you can take over from the property seller if you qualify. meaning the property buyer can take over the mortgage if the p roperty is sold.S.