What is a “Conversion Option”?
A conversion option allows certain loans to be changed. Certain conditions must be met. Balloon loans and adjustable rate mortgages can be changed into fixed rate mortgages under these conditions. Why is my credit score important? A credit score is a rating given to a person based upon the individual’s current and past credit history. It is calculated for the purpose of determining an individual’s credit worthiness. It will include information gleaned from credit card usage and payment history, past mortgage history, other bank loan history, and any other financial matters. A credit score assists the lender in determining the risk factor, if any, in lending money to the individual. What is default? Default is the failure to make the mortgage payments or to pay the property taxes on the real estate in question. What is a down payment? A down payment is the money, cash, or check that an individual pays towards the purchase price of the house. This is not financed. What is an escrow accou
Conversion options are an example of a financial option that may be employed with various types of investments. Essentially, a conversion option makes it possible to switch from an existing applicable rate to a different one. The strategy of a conversion option can be employed with preferred stock, bond issues, and mortgages. When it comes to bonds or preferred stock issues, the ability to invoke a conversion option is usually spelled out in the documents that outline the terms and conditions for the sale and acquisition of the securities involved. Depending on the exact structure of those terms, there may be specific conditions that must take place before a conversion can take place. The structure of the conversion option may also be based on a timetable, allowing the investor to only invoke the option after the securities have been held in ownership for a certain period of time. When it comes to mortgages, a conversion option usually allows the homeowner to switch from a fixed to a v
A conversion option allows certain loans to be changed. Certain conditions must be met. Balloon loans and adjustable rate mortgages can be changed into fixed rate mortgages under these conditions. Why is my credit score important? A credit score is a rating given to a person based upon the individual’s current and past credit history. It is calculated for the purpose of determining an individual’s credit worthiness. It will include information gleaned from credit card usage and payment history, past mortgage history, other bank loan history, and any other financial matters. A credit score assists the lender in determining the risk factor, if any, in lending money to the individual. What is default? Default is the failure to make the mortgage payments or to pay the property taxes on the real estate in question. What is a down payment? A down payment is the money, cash, or check that an individual pays towards the purchase price of the house. This is not financed. What is an escrow accou
Conversion options allow certain loans to be changed after their origination. Predetermined conditions must be met as required by the terms set up at the origination of the mortgage. Balloon loans and adjustable rate mortgages are examples of mortgages that have conversion options. Why is the borrowers credit score important? The borrowers credit score is important since it is used to help determine the worthiness of the borrower as a credit risk. Credit scores are based upon the current and past credit histories of consumers. The credit report includes information from many areas including credit card usage, bill payment history, loan history, bankruptcies, employment, and more. Credit scores assist lenders with the difficult task of determining the risk factor associated with specific borrowers. What is a deed? A deed is a legal document that indicates ownership of a piece of real estate. This document transfers the title of a property that changes hands from one owner to another. Wh
