Mortgage Fallout

  

Categories: Mortgage

See: Mortgage.

Mortgages can take time to close. You've got paperwork to fill out, proof of income to hand in, down payments to win in poker games...not every mortgage that starts off ends up as a finished deal.

Mortgage fallout measures how many mortgages don’t finish the process. The figure represents the percent of original deals that don’t reach completion.

A mortgage is considered part of a lender's pipeline once an interest rate gets locked. At that point, if the deal falls through, it gets tallied as a "fallout." So, say a mortgage company puts 20 deals in its pipeline for a month and 15 of those deals close. Five of the potential mortgage agreements falls through. The mortgage fallout for that lender would be five out of 20, or 25%.

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Finance: What is a Reverse Mortgage?6 Views

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Finance allah shmoop What is a reverse mortgage All right

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people let's start with a normal mortgage You put one

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hundred grand down borrow three hundred grand and are the

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proud new owner of this baby in palo alto california

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You make payments for thirty years at five percent interest

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and then you retire their debt free So that's a

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mortgage but what's a reverse mortgage Like one of these

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egg trump Well kind of at least financially the payments

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go in the opposite direction of a normal mortgage Like

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you're old you just want to live out your remaining

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years with the basic comforts Shower seats stair lift high

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absorption adult diapers You own all of your home No

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mortgage on it You paid it all off The home

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is now worth a million box Nice shoebox There you

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can do a reverse mortgage pledging your home is an

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asset and basically just receiving a payment of l say

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five grand a month from that reverse mortgage and you'll

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get to deduct interest costs as you go Justus if

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it were a normal mortgage well after forty months you

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you know croak in that time period you've taken out

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Forty times five grand or two hundred grand in loans

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plus some interest and you sell your home for a

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cool million Rather your heirs dio So what happens now

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Well they just take the million bucks from the sale

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write a check for two hundred grand and change to

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the bank to pay off the reverse mortgage that you

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had accrued while you were you know wasting away to

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nothing and your heirs end up happy like they miss

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