Search results for: Home Purchase Mortgage

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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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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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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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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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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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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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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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Home Purchase Glossary

Important home purchase related terms Pre-qualified - this is when a mortgage consultant reviews your credit, income and assets to determine what mortgage amount you can afford. This is the first step in the home buying process, most realtors will request a pre-qualification letter prior to showing you properties. 100% Financing -...
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How to get approved for a mortgage loan online

These days, just about anything can be done online, from grocery shopping to buying a new pair of shoes. And, you can even purchase a home online—filling out a mortgage loan and finding out the status of your approval is easy and convenient. However, there are a few things you may want to know that will help you to get approved for a...
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How to get prepared to purchase a home?

When you decide to purchase a home (or condo) for the first time there are a few aspects of your situation to which you should pay close attention. These are the areas that a lender will judge you on and ask for documentation. The more prepared you are to provide it the smoother the loan process will be. The four basic areas are credit,...
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Will I have to pay for Private Mortgage Insurance?

If you have just been approved for a mortgage, or are in the process of searching for a home to purchase, you may want to know everything about private mortgage insurance (PMI). This type of insurance is issued by private lenders in order to protect the lender in case the borrower defaults on a loan. You may also want to know everything to...
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Is an interest only loan a good idea when buying a house?

Should you be paying interest only when you buy your first home? Well there are different answers to that question. It depends on the situation of the buyer and the current housing market in that area. Interest only loans To begin with, when you are paying an interest only loan you are not paying any principal down at all. So if you...
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ways to refinance your home equity loan

If you already have a home equity loan and are looking for ways to refinance your home equity loan, there are several options for you to choose from. It's important for you to discuss these choices with your mortgage loan officer and/or real estate agent so that you know which financing options are best for your budget, and which repayment...
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process to apply for a Fannie Mae Mortgage Loan

Getting a Fannie Mae mortgage is the right choice for many people who wish to become homeowners. Although Fannie Mae does not lend money directly to consumers, they do provide funds to mortgage lenders, who in turn make those funds available to potential homebuyers in the form of loans. If you are considering applying for a Fannie Mae...
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FHA home loans: how do they work?

So you've started the arduous task of applying for a home loan only to find that an FHA loan is the best, or only choice for you. Don't let the official title frighten you. While an FHA loan may seem daunting, it really is much easier to understand than its name implies. However, there are some major features of FHA loans that do separate...
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buy foreclosed homes with zero down payment

Buying a foreclosed home can be a smart idea, because they tend to be priced lower than similar houses on the market. So whether you're looking for a primary residence--or plan to sell the house at a later date--a foreclosure may save you money. However, what should you do if you don't have the money for a down payment? Try one of these...
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How to qualify For A Sub-Prime Loan?

If you have a poor credit history, you may have found it difficult to qualify for home financing. If this is the case you may want to look into the possibility of getting a sub prime loan. Sub prime loans try to make it possible for people with less than perfect credit to qualify for home financing. Most people today end up with debt problems...
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Conventional vs. Sub-prime lending, where do you fall?

Every consumer that is in the market for a home loan whether for a refinance or purchase has been directed to two types of lenders classified as 'conventional' or 'sub-prime.' They are also known as conforming and non-conforming lenders. However the majority of consumers do not know exactly what the differences between the two are. Well...
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Do you need a 30% down payment to buy a property?

This is of course after about half of them told you none of your business. Generally a 30% down payment is not required. If you are in this very fortunate situation that's great, but you may find that you are better off using a smaller down payment and keeping some of that cash in savings. A large down payment does have its...
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poor credit? apply online for instant approval

Qualifying for a home loan can be difficult when you have credit problems. Obviously, it will not be as easy for you as it would for someone with a solid credit history. However, that does not mean it is hopeless. There are many sub prime lenders online that offer instant loan approvals. Yes, instant. It is faster and easier than applying...
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