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

9. CLIENT CUSTOMER - Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 10. Which word is related to nose as chew is to teeth? Sweet Stink Odor Smell Clean 11. AUTUMN is the opposite of Vacation Summer Spring Winter Fall 12. A plane travels 300 feet in half second. At this same speed, how many feet w ill it travel in 10 seconds? 6000ft 13. Assume the first 2 statements are true. Is the final one: True False Not certain? These boys are normal children. All normal children are active. These boys are active. 14. REMOTE is the opposite of Secluded Near Far Hasty Exact 15. Lemon candies sell at 3 fro 10 cents. How much will half dozen cost? 20 16. How many of the five pairs listed below are exact duplicates? 2 84721 84721 9210651 92110561 14201201 14210210 96101101 96101161 88884444 88884444 17. Arrange the following words so that they make a true statement. Print the la st letter of the last word as the answer. b Always A verb sentence a has. 18. A boy is 5 years old and his sisters is twice as old. When the boy is 8 year s old, will his sister be? 13 19. IT'S ITS - Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 20. Assume the first 2 statements are true. Is the final one: True False Not certain? John is the same age as sally. Sally is younger than bill. John is younger than bill. 21. A dealer bought some barrels for $4,000. She sold them for $5,000, making $5

0 on each barrel. How many barrels were involved? 22. Arrange the following words so that they make a complete sentence. If it is a true statement, put a (T) in the brackets; if false, put an (F) in the bracket s. Eggs lay all chickens F 23. Two of the following proverbs have similar meanings. Which ones are they? Many a good cow hath a bad calf. Like father, like son. A miss is as good as a mile. A person is known by the company he keeps. They are seeds out of the same bowl. 24. A watch lost 1 minute 18 seconds in 39 days. How many seconds did it lose pe r day? 25. CANVASS CANVAS - Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 26. Assume the first 2 statements are true. Is the final one: True False Not certain? All students take tests. Some of the people in this room are students. Some of the people in this room take tests. 27. In 30 days a boy saved $1.00. What was his average daily savings? 1/30 28. INGENIOUS INGENUOUS- Do these words Have similar meanings Have contradictory meanings Mean neither the same nor opposite? 29. Two men caught 36 fish; X caught 5 times as many as Y. How many fish did Y c atch? 6 30. A rectangular bin, completely filled, holds 800 cubic feet of grain. If the bin is 8 feet wide and 10 feet long, how deep is it? 10 31. One number in the following series does not fit in with the pattern set by t he others. What should that number be? 1/2 1/4 1/6 1/8 1/9 1/12. 32. Answer this question by printing YES or NO. Does P.M. mean post meridien? 33. CREDITABLE CREDULOUS - Do these words Have similar meanings(not sure) Have contradictory meanings Mean neither the same nor opposite? 34. A skirt requires 2-1/4 yards of material. How many skirts can be cut from 45 yards? 35. A clock was exactly on time at noon on Monday. At 2 P.M. on Wednesday, it wa s 25 seconds slow. At that same rate, how much did it lose in half hour? 36. Our baseball team lost 9 games this season. This was 3/8 of all they played. How many games did they play this season?15 37. What is the next number in this series? 1 .5 .25 .125 ?. 0.0625 38. Are the meanings of the following sentences Similar Contradictory Neither similar nor contradictory? A new broom sweeps clean. Old shoes are easiest.

39. How many of the five pairs listed below are exact duplicates? 1 Rexford, J.D. Rockford, J.D. Singleton, M.O. Simbleten, M.O. Richards, W.E. Richard, W.E. Siegel, A.B. Seigel, A.B. Wood, A.O. Wood, A.O. 40. Two of the following proverbs have similar meanings. Which ones are they? You cannot make a silk purse out of a sow's ear. He that steals an egg will steal an ox. A rolling stone gathers no moss. You cannot damage a wrecked ship. It is the impossible that happens. 41. Which number in the following group of numbers represhents the smallest amou nt? 10 1 .999 .33 11. 42. Are the meanings of the following sentences Similar Contradictory Neither similar nor contradictory?(not sure) No honest person ever apologized for their honesty. Honesty is praised and starves. 43. For $1.80 a frocer buys a case of fruit which contains 12 dozen. She knows t hat two dozen will spoil before she sells them. At what price per dozel must she sell the good ones to gain half of the whole cost? 44. In the following set of words, which word is different from the others? Colony Companion Covey Crew Constellation 45. Assume the first 2 statements are true. Is the final one: True False Not certain? Great people are ridiculed. I am ridiculed. I am a great person. 46. Three individuals form a partnership and agree to divide the profits equally . X invests $4,500, Y invests $3,500 and Z invests $2,000. If the profits are $1 ,500, how much less does X receive than if the profits were divided in proportio n to the amount invested? 47. In printing an article of 30,000 words a printer decides to use two sizes of type. Using the larger type, a printed page contains 1,200 words. Using the sma ller type, a page contains 1,500 words. The article is allotted 22 pages in a ma gazine. How many pages must be in the smaller type? ya ,these are few questions wat they asked me,most of them will be repititive,s ame models or even same questions also,if u get more than 35 its enough u will b e selected for next round,actually on the day of my interview they conducted wri tten and selected 3 of us from 30,and then they conducted written test twice for the rst because their score is around 20-25,and ours is more than 40,so they se lcted me for the next round 2.communication round: this round is simply to check ur speaking skills and confidence,these round is not mandatory,1st round is mandatory for any fresher or experienced candidate,in this round they will ask only about ur profile and project and why to join here etc 3.technical round:

they asked me about basics in networking,and H.R is very cool,he conducted it as H.R round,he asked me my B.Tech experiences ans how i njoyed,and he told me a bout job profile and then he asked me to wait in the reception. Finally they selected 3 of us from that round and they conducted next r ound. 4.H.R cum managerial round: it is very important round,because if they cant judge u in technical rou nd ,then they go for this round,and this round includes few no.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,it s my 10th interview and god is great as he gave me nice oppurtunity,company is g ood and ctc is too good,thanks to god and my parents who encouraged me a lot and to my friends cum well wishers.ok,dont worry be courage,see you at Ocwen soluti ons,bye 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) 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 figures 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 gre ets 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 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 figures 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 gre ets 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 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. However, the word m ortgage alone, in everyday usage, is most often used to mean mortgage loan. A home buyer or builder can obtain financing (a loan) either to purchase or secu re against the property from a financial institution, such as a bank, either dir ectly or indirectly through intermediaries. Features of mortgage loans such as t he size of the loan, maturity of the loan, interest rate, method of paying off t he loan, and other characteristics can vary considerably. In many jurisdictions, though not all (Bali, Indonesia being one exception[1]), it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outrigh t. In countries where the demand for home ownership is highest, strong domestic markets have developed. The word mortgage is a Law French term meaning "dead pledge," apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the prop erty is taken through foreclosure.[2]

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

rtgage loan, that is, the likelihood that the funds will be repaid (usually cons idered a function of the creditworthiness of the borrower); that if they are not repaid, the lender will be able to foreclose and recoup some or all of its orig inal capital; and the financial, interest rate risk and time delays that may be involved in certain circumstances. [edit]Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly de fine the characteristics of the mortgage. All of these may be subject to local r egulation and legal requirements. Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be highe r or lower. Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain da te, or even negative amortization. Payment amount and frequency: the amount paid per period and the frequency of pa yments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid. Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayme nt. 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 many countries (such as the United States), floating rate mortgages ar e the norm and will simply be referred to as mortgages. Combinations of fixed an d floating rate are also common, whereby a mortgage loan will have a fixed rate for some period, and vary after the end of that period. In a fixed rate mortgage, the interest rate, and hence periodic payment, remains fixed for the life (or term) of the loan. Therefore the payment is fixed, altho ugh ancillary costs (such as property taxes and insurance) can and do change. Fo r a fixed rate mortgage, payments for principal and interest should not change o ver the life of the loan, In an adjustable rate mortgage, the interest rate is generally fixed for a perio d of time, after which it will periodically (for example, annually or monthly) a djust up or down to some market index. Adjustable rates transfer part of the int erest rate risk from the lender to the borrower, and thus are widely used where fixed rate funding is difficult to obtain or prohibitively expensive. Since the risk is transferred to the borrower, the initial interest rate may be from 0.5% to 2% lower than the average 30-year fixed rate; the size of the price different ial will be related to debt market conditions, including the yield curve. The charge to the borrower depends upon the credit risk in addition to the inter est rate risk. The mortgage origination and underwriting process involves checki ng credit scores, debt-to-income, downpayments, and assets. Jumbo mortgages and subprime lending are not supported by government guarantees and face higher inte rest rates. Other innovations described below can affect the rates as well. [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, lenders usually requ ire that the borrower make a downpayment; that is, contribute a portion of the c ost of the property. This downpayment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ra

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

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

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

m the sale (net of costs) are applied to the original debt. In some jurisdiction s, mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender m ay not have recourse to the borrower after foreclosure. In other jurisdictions, the borrower remains responsible for any remaining debt. In virtually all jurisdictions, specific procedures for foreclosure and sale of the mortgaged property apply, and may be tightly regulated by the relevant gover nment. There are strict or judicial foreclosures and non-judicial foreclosures, also known as power of sale foreclosures. In some jurisdictions, foreclosure and sale can occur quite rapidly, while in others, foreclosure may take many months or even years. In many countries, the ability of lenders to foreclose is extrem ely limited, and mortgage market development has been notably slower. [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, the Covered bonds market volume (covered bonds outsta nding) amounted to about EUR 2 trillion at year-end 2007 with Germany, Denmark, Spain, and France each having outstandings above 200,000 EUR million.[9] In Germ an language, Pfandbriefe is the term applied. Pfandbrief-like securities have be en introduced in more than 25 European countries and in recent years also in the U.S. and other countries outside Europe each with their own unique law and regu lations. However, the diffusion of the concept differ: In 2000, the US instituti ons Fannie Mae and Freddie Mac together reached one per cent of the national pop ulation. Furthermore, 87 per cent of their purchased mortgages were granted to b orrowers in metropolitan areas with higher income levels. In Europe, a wider mar ket has been achieved: In Denmark, mortgage banks reached 35 per cent of the pop ulation in 2002, 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).[10] [edit]Costs A study issued by the UN Economic Commission for Europe compared German, US, and Danish mortgage systems. The German Bausparkassen have reported nominal interes t rates of approximately 6 per cent per annum in the last 40 years (as of 2004). In addition, they charge administration and service fees (about 1.5 per cent of the loan amount). In the United States, 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, gross borrow ing costs are substantially higher than the nominal interest rate and amounted f or the last 30 years to 10.46 per cent. In Denmark, similar to the United States capital market, interest rates have fallen to 6 per cent per annum. A risk and administration fee amounts to 0.5 per cent of the outstanding debt. In addition, an acquisition fee is charged which amounts to one per cent of the principal.[1 0] [edit]Recent trends Mortgage Rates Historical Trends 1986 to 2010

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

An alternative scheme involves the bank reselling the property according to an i nstallment plan, at a price higher than the original price. Both of these methods compensate the lender as if they were charging interest, 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.[citati on needed] [edit]Other terminologies Like any other legal system, the mortgage business sometimes uses confusing jarg on. Below are some terms explained in brief. If a term is not explained here it may be related to thelegal mortgage rather than to the loan. Advance This is the money you have borrowed plus all the additional fees. Base rate In UK, this is the base interest rate set by the Bank of England. In t he United States, this value is set by the Federal Reserve and is known as the D iscount Rate. 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. Disbursements These are all the fees of the solicitors and governments, such as stamp duty, land registry, search fees, etc. 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. equity This is the market value of the property minus all loans outstanding on i t. First time buyer This is the term given to a person buying property who has not owned property within the last three years. Loan origination fee A charge levied by a creditor for underwriting a loan. The fee often is expressed in points. A point is 1 percent of the loan amount. Sealing fee This is a fee made when the lender releases the legal charge over th e property. Subject to contract This is an agreement between seller and buyer before the act ual contract is made. [edit]General, 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

UK mortgage terminology [edit]Related to the United States Commercial lender (US) - a term for a lender collateralizing non-residential pro perties. Fixed rate mortgage calculations (USA) pre-qualification - U.S. mortgage terminology pre-approval - U.S. mortgage terminology FHA loan - Relating to the U.S. Federal Housing Administration VA loan - Relating to the U.S. Veterans Administration. eMortgages Location Efficient Mortgage - a type of mortgage for urban areas Predatory mortgage lending [edit]Other nations Danish mortgage market Mortgage Investment Corporation [edit]Legal details Deed - legal aspects Mechanics lien - a legal concept Perfection - applicable legal filing requirements

TYPES OF MORTGAGES - 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. 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, how long do you plan to keep the house and where do y ou think mortgage interest rates are going. Finally, how big should your mortgag e loan be? The basic rule is the annual upkeep of your property (mortgage paymen ts, utilities and insurance) should not exceed 30% of your gross annual income. Read on to find which home loan is the best mortgage suited for you. Fixed Rate Mortgage This is the most common type of residential home loan. The mortgage loan is repa id through fixed monthly payments of principal and interest over a set term. The borrowing rate stays the same over the life of the residential mortgage loan. T he term of the home mortgage can be 10, 15, 20 or the popular 30 year fixed rate mortgage term. The way fixed mortgage loans are structured, the mortgage intere st is front loaded. In the first years of the residential loan, the bulk of the monthly payments go to paying mortgage interest. Its 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. A fixed rate mortgage is ide al for those who intend to stay in their properties for a long time. Apply for a Fixed Rate Mortgage

The Advantages Stability: With your mortgage rates fixed, the loan period set, you know what yo ur mortgage payment will exactly be for the whole life of the residential loan. Given the certainty of your mortgage loan payment, you can plan your finances ac cordingly. 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. Using a 30 year fixed mortgage of $150,000 as an example, if the borro wing rate is 6.50%, the monthly payment would be $948.10. If the mortgage intere st rate is 8.50%, the mortgage monthly payment would amount to $1,153.37. The di fference in monthly payments is $205.27. The Disadvantages Affordability: If mortgage interest rates are high, you might have difficulty ma king the high mortgage payments. The home loan in this situation might not be ap proved. High payments in a high mortgage rate environment: Nobody wants to be saddled wi th high home mortgage payments over the long term. When borrowing rates are lowe r, you can refinance your mortgage. A refinance mortgage is the process of repla cing your current mortgage with a new residential mortgage with better borrowing terms. [back to top] The Adjustable Rate Mortgage (ARM) The adjustable rate mortgage is usually referred to as an ARM. An arm adjustable rate mortgage is a combination of a fixed rate mortgage and a floating rate mor tgage. At the beginning of the mortgage term, the mortgage rate is fixed for cer tain periods. These periods could be for 3, 5, 7 or 10 years. After this period expires, the mortgage interest rate becomes adjustable. A popular ARM home loan is the 5 1 ARM Mortgage. Five denotes that the period an d the borrowing rate are initially fixed for 5 years. After the fifth year, the mortgage rate becomes adjustable. 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, during a given time period . 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. Meaning, you have t he option to convert during the 13th, 25th, 37th, 49th and 61st months of the mo rtgage loan. Components of an ARM Adjustable Rate Mortgage There are several components that go into calculating the adjustable rate of an ARM mortgage. Index: This is the market derived interest rate which is used as a base to set f uture rates of the ARM mortgage loan. Depending on the index chosen, the home bo rrowing rate could be adjusted monthly, quarterly, semi-annually or annually. Th e index could be pegged to the following: Treasury Bill Rates, The Prime Rate, L ibor and 6 month CD. These indexes are usually published in the newspaper. Margin: This is the spread added to the index to determine the actual rate charg ed to the mortgage borrower. Example: Index is based on One Year Treasury Bills 3%. The margin is 2%. The mortgage rate the borrower pays is 5%. Rate = Index Ra

te + Margin Adjustment Period: This is the duration for which the mortgage interest rate is fixed. If the adjustment period is one year, then the interest rate will remain fixed for one year, after which time it will adjust. Adjustment Cap: This is the maximum the interest rate can adjust either up or do wn for each adjustment period. Example: The adjustment cap is 1 point. The index based interest rates since the last adjustment period went up 1.5 points. The m ost you will be paying would be 1 point due to the cap. Lifetime Cap: The maximum mortgage interest rate charged over the duration of th e arm mortgage loan. The cap can be as high as 6%. The cap is based on the inter est rate from the first year adjustment period. The rate is 5%. The highest the mortgage interest rate can go is 11% (Base Rate + Lifetime Cap). The Advantages Teaser Rate: This is the starting interest rate of the arm adjustable rate mortg age. It is usually referred to as the teaser rate, since it is lower than the fu lly indexed rate. The initial low mortgage rate is used to attract people. An ar m mortgage is ideal for people who intend to stay in their homes for no more tha n 5 to 7 years. The benefits of an arm are realized at the beginning. Affordability: If current mortgage rates and housing prices are high, this may b e the only home loan option available to you. 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. The monthly am ount will be less with a lower interest rate so you might qualify for more. Interest rates have peaked: By going with an adjustable rate mortgage arm at the peak of the interest rate cycle, the successive rates will be lower as interest rates go down. Your monthly home mortgage payments will be lower. The Disadvantages Complicated to understand: Unlike a fixed rate mortgage that is simple to unders tand, there are many variables that go into calculating adjustable rate mortgage loans. Interest rates have bottomed out: By going with an adjustable rate mortgage arm at the bottom of the interest rate cycle, successive borrowing rates will likely go higher as interest rates go down. Your monthly mortgage payments will become less affordable. Uncertainty: If you plan to be at your property for more than 7 years, you will be dealing with the uncertainty associated with an ARM mortgage. After each adju stment period, you will bet getting new mortgage payments. [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 monthly payments consist only of mortgage interest only. Due to the lower monthly mortgage payments, you qualify for a bigger resid ential loan. 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. Interest only mortgage payments periods range from 1 year up to half the t erm of the mortgage loan. Interest only loan mortgages are available in adjustab

le rate mortgage format and fixed mortgage format. Bigger Monthly Mortgage Payments After the interest only payment is over, you will begin making payments on your mortgage principal. Your monthly mortgage payment will go up considerably. For e xample, you took out a 15/30 year interest only mortgage. After the 15th year, t he principal balance will be amortized over 15 years. With a $175,000 home loan with a mortgage borrowing rate of 6.50%, the interest only monthly payment is $9 47.92. When the principal payments kick in after the 15th year, the mortgage mon thly payment jumps to $1,524.44. The Advantages Lower mortgage payments: The lower monthly mortgage payments let you purchase a home where a fixed mortgage loan would not. 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, you can invest in other vehicles such as stocks and m utual funds to generate a superior return. The Disadvantages Income Risks: There are no assurances that your income will rise fast enough to cover the higher monthly mortgage payments. 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. As a resul t, you might require another loan just settle the interest only mortgage loans. 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, there is no guarantee youll make money. [back to top] Biweekly Mortgage Mortgage payments are made every two weeks. The amount paid is half of what your monthly mortgage payment would be. On an annualized basis, there are two extra payments in a year. You will be making 26 biweekly mortgage payments instead of 24 payments. Save Thousands On Mortgage Interest And Pay Off Your Mortgage Quicker A bi weekly mortgage program has you paying down your principal mortgage earlier . As a result, youll save significant amounts in mortgage interest and pay off yo ur home mortgage years earlier. Example: 30 year fixed mortgage $175,000 Interest Rate: 6.75% By opting for a bi weekly mortgage payment plan for this mortgage, you will be s aving $54,257.52 in mortgage interest. Your mortgage will be paid off 5 years 9 months earlier. [back to top] Two Step Mortgage A two step mortgage is essentially a 30 year mortgage with special features: Con vertible or non-convertible. These mortgage loans are also known as 5/25s and 7/ 23s. 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 . 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. The starting home loan rate is lower

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