Search results for: Home Mortgage Loan

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How do I know which type of mortgage is best for me?

There are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your...
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Can I qualify for a HUD reverse mortgage?

To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to...
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What is a 125% Home Equity?

A very popular line of products to come out over the past few years has been the ability to borrow more than that value of your property. In most cases you can borrow up to 125% of the value. It has become so popular because of the soaring home values, depending on the area in which you live you could have your property increase by the...
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Advantages and Disadvantages of Debt Consolidation Refinance

When you are considering a debt consolidation refinance there are a few things to keep in mind. Don't be too quick to jump into a new loan without weighing all the factors involved. Review some of the advantages of debt consolidation: Consolidating multiple monthly payments into 1 payment each month. Typically this new payment is...
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Home Equity - Glossary of Terms

Find the meaning of home equity related terms HELOC - abbreviation for Home Equity Line of Credit Interest only - pay only interest, calculated by taking the Loan Amount * the rate and divided by 12. Principal is not paid down. Full Principal & Interest Payments - the payments per month in order to pay off the loan in the...
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Choosing between a home equity line of credit or a home equity loan

If you're planning on purchasing a home soon, and want to choose a home equity line of credit or a home equity loan, there are a few things to consider before you make your final decision. Here are some of the things that will help you to select the best home equity loan for your and your family. Home Equity Evaluation First of all,...
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Buy a house with zero down & low monthly payments?

You might be thinking, how is it possible to purchase a house or condo with no money down and obtain low monthly payments? Well in the current housing market it is possible and occurs quite frequently. Now how do you make this happen for you, well there are 2 pieces to the puzzle that you need to know going into your housing search. First...
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What fees make up the closing costs?

Figuring out closing costs The total amount of closing costs and/or settlement charges can finalize a borrowers decision. The costs or fees charged by one broker could greatly differ from a competitor. It helps to know what fees are involved in a real estate transaction. Closing costs are simply the costs associated with the closing of...
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Which Type of Home Loan is Best for You?

There are many different types of home loans from which prospective borrowers can choose. There are fixed rate mortgages, adjustable rate mortgages and home equity loans, to name a few. As these are the main types of home loans, they will be discussed in further detail to determine which home loan is right for you. Fixed Rate...
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What is a personal home equity loan?

Personal home equity loan basics A home equity loan is a second loan on a property that gives the homeowners money based on the amount of equity in their property. Equity is the difference between how much the home is currently worth and how much is still owed on the mortgage loan. The money taken out can be spent on anything. Most people...
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Home Equity Line of Credit

Home equity lines are ideal for many people with unique and different financial situations. Some of the most common circumstances to request a home equity line of credit are: unexpected expenses (medical expenses, college tuitions), home improvement projects (bathroom or kitchen remodeling, installing a new roof, new home addition, etc...) or...
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Traditional Fixed Rate Mortgages

The most basic home loan is a fixed rate mortgage. It is what it advertises; a fixed rate and payment for the life of the loan. So whether it is 2 years or 10 years into the loan the mortgage payment and rate will still be the same. They are available in 10, 15, 20, 25 and 30 year periods. The most popular are 30 and 15 year loans. ...
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How does piggybacking loans work?

'Piggybacking' loans has become the most popular way to purchase a home over the past few years. This avenue of financing serves two main purposes. First, it allows the buyer to purchase a property with no down payment. With the current prices of homes it has become increasingly difficult for first time buyers to save even 5% of the asking...
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Guide for first time home buyers

What can you afford? One of the biggest mistakes prospective buyers make is not understanding or realizing how to budget for a new home. Not only the closing costs associated with the purchase but also understanding the monthly payments involved. If you are looking for purchase your first home with a no down payment/100% financing...
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Buy your First home with no Down Payment

The 20% down old myth The days of putting 20% down when purchasing a home are long gone. There was a time that realtors and sellers wouldn't even discuss selling if you didn't have 20% or even 10% for a down payment. Well times have changed and the lending industry has adapted. With the dramatic increase in home values it is becoming...
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Basics of Home Purchase Mortgages

So, you are looking to purchase a new home... Do you need to get pre-qualified for a mortgage? Do you need to know if you can afford your Dream Home? Do you want to buy but you think you can't because you do not have a Down Payment? Home Purchase Loan Basics Purchase with No Down Payment: you can buy a home with no down...
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get a home equity line of credit without income verification

A home equity loan that requires no income verification is a loan that does not have the requirement of you to document your income to receive the loan. A second mortgage is a good option for homeowners who need a home equity loan but can't or would not like to document their income or have difficulty doing so. Many borrowers with hard to...
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are all home equity loans equal?

Not all home equity loans are equal. This is for several reasons. When people apply for a home equity loans, they are essentially applying for a second mortgage. They will receive a large sum of money to with the way they see fit. Each month they will have to pay it back. This can be stressful those who still have a primary mortgage payment....
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Buying a house, how much home can you afford?

Buying a house: what to consider? When making the decision to buy a home, there are many things to consider. Before you even start to look for that dream house, you need to think about how much house you can afford. If you are renting, you already have an idea of how to budget and manage your monthly expenses every month. Things will be...
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How can homeowners qualify for HELOCs?

If you are already a homeowner, chances are you would want to know how you can save money each month in order to keep your household running smoothly. You may have considered a second mortgage, which is usually a sound option for most homeowners, but you can also request a home equity line of credit (HELOC). Basics of a home equity line of...
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Traditional purchases with Down Payments

First time home buyers have always looked at putting some range of a down payment on a home. These down payments can range from as little as 3% up to the traditional 20%. The twenty percent down payment was always the standard, in this scenario you would walk in owning a good portion of the home, avoid paying PMI (private mortgage...
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Buying a home with bad credit.

Apply for a Mortgage EVEN with Bad Credit! A big MYTH consumers have believed in the lending industry is that you need excellent credit to obtain 100% financing. It is not true. Even with below average credit you can still qualify for 100% financing. You can find mortgage lenders who will offer you a loan even if your credit score is...
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When is the right time to Refinance?

Have you considered refinancing your existing mortgage? There are many things to consider when attempting to refinance instead of just seeing that rate on TV or the internet. Here are a few quick points to review and compare to your situation. The refinance rate Is your current rate higher than what is being advertised? Remember...
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What factors make up your Credit Score?

The formulas used by the credit reporting bureaus are complex and take a great deal of imformation in to calculate your scores. The best way to understand what your individual scores mean is to learn which items on your report have a big effect. It also helps to know what types of accounts are better than others. ###Credit Reporting...
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The Basics of Home Refinancing

When you are looking to refinance for whatever reason it helps to know what areas on which the banks will evaluate your situation. First and foremost is your credit worthiness. The old adage is true 'the better your credit score the better the rate you can obtain.' The lender will pull a score from the 3 credit bureaus. You should...
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No Down Payment Mortgages (100% Financing)

You can buy a home with no down payment and finance the entire home's value. Many first-time home buyers cannot afford putting down 20% of the home value, but rather go with a no-down payment option in order to use their savings to purchase furniture or other necessities for their new home. There is a few ways to accomplish this type of...
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What are Adjustable Rate Mortgages (ARMs)?

What you need to know about adjustable rate mortgages... The rate is fixed only for a predetermined time (chosen from 2, 3, 5, 7 or even 10 year terms). After which the rate will adjust per year (or depending on the loan program) equaling the index plus margin selected at the start of the loan. Advantage of an ARM is typically they...
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ideas on how to use a home equity loan

So you are finally building up equity on your home and you want to know your options. You can obtain a second mortgage on your home. A second mortgage would allow you to receive a lump sum of money, taken out as a loan. This is a secured loan, which uses your home equity as collateral. You would have the freedom to use this lump some of...
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What are Interest Only Mortgages? Differences with standard home loans

What you need to know about Interest Only Mortgages... These loans can be either an ARM or Fixed rate mortgage. The purpose of these loans is to obtain the lowest possible payment per month. You are only paying the interest owed on the loan. No principal is paid down. So after 1 or 3 years of interest only payments the original...
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Steps to Apply for a Mortgage

For most people, a mortgage loan is necessary to buy a house. Nowadays, one can apply for a mortgage loan either through the internet or by directly approaching the mortgage loan company. However, some steps have to be taken when applying for a mortgage loan. Mortgage Loan Companies The first thing that has to be done is to find out...
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