Mortgages & Loans

A Overlying mortgage is a mortgage which is junior, having a subordinate claim to a senior mortgage on the same real estate.

A loan that exceeds the conventional loan limit or does not conform to the guidelines established by Freddie Mac or Fannie Mae is called a Jumbo loan. Generally, these loan amounts can go up to three million dollars. Loan to value limits for Jumbo loans range from 60 percent to 95 percent, depending on the loan amount.

Dividends are paid in U.S. dollars and are generally taxable, similar to dividends paid on U.S. shares. Generally, taxes are withheld by the American Depositary Receipt company's local government. Usually, foreign taxes paid can be used to calculate a credit against U.S. taxes on IRS Form 1116 or Schedule A. Speak to your local CPA or bank about investments in American Depositary Receipts.

Closing costs are one time fees associated with a mortgage. Generally, the amounts vary from 3-7% of the total mortgage amount. Closing costs may include attorney fees, title insurance and related charges, mortgage tax, recording filing fees, tax service fees. Other payments at the closing may include Real Estate tax escrows, homeowner's insurance escrows, origination points, private mortgage insurance fees. You should receive a estimated closing costs document from the bank prior to the actual closing.

The Master Promissory Note has replaced the Stafford Loan Application Promissory Note. It is a legally binding document that sets the terms of your student loans. By signing the Master Promissory Note It becomes a legally binding document that sets the terms of your student loans. By signing the Master Promissory Note you are promising to repay your student loan. This is regardless of whether you graduate or are satisfied with your education. You are promising to repay your student loan regardless of whether you graduate or are satisfied with the education you received.

If your school is authorized by the Department of Education, and uses the Master Promissory Note as a multi-year note, you will only have to sign the note once as long as you don't change lenders. If you attend a two year or proprietary school, you will need to complete the Master Promissory Note each year. If your Master Promissory Note exceeds 10 years, you must sign a new Master Promissory Note.

Grace Period is a short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half time enrollment. Depending on the type of loan, you will have a grace period of six months for Stafford Loans or nine months for Perkins Loans before you must start making payments on your student loans. The PLUS Loans do not have a grace period.

No. Parents will only be responsible for your educational loans if you are under 18 and they cosign your loan. In general you and you alone are responsible for repaying your educational loans. Parents are responsible for the Federal PLUS loans only. If your parents want to help pay off your education loans, you can have your billing statements sent to their address. Also, if your lender provides an electronic payment service where the monthly payments are automatically deducted from a bank account, your parents can agree to have the payments deducted from their account. Your parents are under no legal obligation to repay your loans. If they forget to pay the bill on time or decide to cancel the electronic payment agreement, you will be held responsible for the payments, not them.

Possible Yes. Under certain circumstances. A discharge releases your parents from all obligations to repay the loan.
A complete listing of the discharge conditions is given in your loans Borrower Rights documentation.
Your parents' loan cannot be discharged because you did not complete your program of study at your school unless you were unable to complete the program because the school closed, didn't like the school or the program of study, or did not obtain employment after completing the program of study.
For more information about loan discharge or repayment PLUS Loan borrowers should contact the lenders or agencies that hold their loans.