The break even point of a mortgage is the period in time in the future when the borrower starts to save money or experience an increase in savings.
Break even points are most often referenced in two situations:
When a home buyer goes to a lender to apply for a mortgage, he might be quoted a variety of interest rates to select from.
The equity of a house is the value of it less any outstanding mortgage and liens against it.
In layman terms, home equity refers to the actual stake a borrower has in the property after accounting for debt obligations against it.
For example, if a house was valued and purchased at $500,000, with an 80% loan to value from a lender, the new owner would have a $100,000 equity stake in the house made up of the down payment at the point of purchase.
A net branch is an office branch for mortgage brokers that is supported by a lender.
Such operations are meant to make brokers employee of the lender, yet retain their independence position of brokers.
At least that what it theoretically means.
The effective rate on a loan is the interest rate after adjustment for compounding effects during the year.
The number of times a loan facility compounds can have a great impact on effective interest rate (EIR).
The formula for effective rate is as below: