The past few years have seen an enormous number of foreclosures. The common wisdom has been that a leading cause of default was payment shock, a swift and sizable increase in adjustable monthly payments.
Now, however, Paul S. Willen, a senior economist with the Federal Reserve Bank of Boston, says payment shock is little more than an urban myth.
House hunting and homebuying comes with its own unique language, littered with all kinds of acronyms, words and phrases.
Veterans United maintains an in-depth mortgage glossary. This short list is a good introduction:
There’s no doubt that we live in rough economic times. It’s enough to make you want to stick money in a mattress — indeed, according to one survey that’s what 27 percent of us want to do.
The catch is that mattresses are a woeful investment option. Putting cash in a mattress earns no interest and if lost, stolen or destroyed is entirely uninsured.