Search results for: Mortgage Insurance

Total: 20 articles
RSS

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...
askmrmortgages

Documentation Loans

What you need to know about Loan Documentation There are 3 basic types of loan documentation. Below is a list and a brief description of why borrowers use them Full Documentation - In this case you supply a current pay-stub and past 2 years W-2s. The lender will call to verify your employment for the past 2 years at a minimum. This...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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 -...
askmrmortgages

no money down & poor credit mortgage loans

Are you thinking of buying a home? Are you sick of living with your parents or throwing away money each month on rent? Do you feel you won't get a mortgage because you have no down payment or a poor credit history? It may come as a surprise to you but you do have options available. There are loan programs out there for people in your...
askmrmortgages

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,...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

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...
askmrmortgages

which is better? home equity loan or 2nd mortage?

A second mortgage on your home may be a better option than a home equity loan, depending on your situation. Second mortgages are ideal when you only want to tap into your equity, plan on moving, or are not sure the amount of money you would like to borrow. Tapping into your equity of your home is accomplished best through a second...
askmrmortgages

Basics of FHA loans

FHA (Federal Housing Administration) loans have been available for over 60 years. These loans offer chances to borrowers and first-time home buyers for financing when they may not meet conventional lending guidelines. First-time home buyers benefit greatly from FHA loans because the ability to finance up to 97% of the value of the...
askmrmortgages

how do you find the best home equity line of credit rates?

You finally found the dream house that you want to live and grow old in. However, you don't have the ready money for it and plan to get a bank loan which in turn will require you to get private mortgage insurance. How to avoid private mortgage insurance The only way to avoid private mortgage insurance is to make a down payment on the...
askmrmortgages