When applying for a mortgage, the lender you have chosen
will take many factors into account. These factors not only
influence what type of loans you can qualify for but also
what your monthly payments will be and how many years you
will take to pay the loan off completely.
Knowing these factors and doing what you can to improve
them all can make a tremendous difference when you go and
see your lender and start the process that will get you
your new property.
Some of the basic factors apply for just about any loan but
are especially important if you are trying to get a
mortgage. The big one is, yep, credit.
How good is your credit? Get copies of all of your credit
reports from the 3 major consumer reporting companies and
check each one for errors.
Many times they have errors that can be corrected in just a
few weeks and that helps boost your score. If you have
credit cards, pay them off as well as any other outstanding
bills.
A nice large down payment will always improve your chances
of being approved. If your credit isn't completely top
notch, the bigger the down payment, the more likely you
will get improved.
If your credit is great, you can still put down as much as
possible to lower the monthly payments or decrease the
total loan time.
Above all else, don't lie to your lender. If you tell them
you are a supervisor of a power plant and they find out you
are a UPS man who has only had the job for 6 months, you
will be totally screwed. Be honest and your lender will do
their best to work with you.
Sunday, March 21, 2010
Fixed Rate Mortgage
A fixed rate mortgage is one of the most common types of
home loan in the USA. It's very easy to understand and set
up and helps people know exactly what type of commitment
they are making financially.
It has one main benefit over all other types of loan.
Stability. No matter what happens with fluctuating interest
rates, you are guaranteed the same payment each month for
the entire term of your loan.
This really helps give people peace of mind because they
don't have to wonder if their next loan payment will be
higher than the previous one.
Some people are very meticulous when it comes to bills and
don't want to feel like they are gambling on the real
estate market.
This is what helps make a fixed rate mortgage so appealing.
The payments don't change so you have a much better chance
of being able to save up money for home repairs, vacations,
and new purchases.
This loan is also good for people who have to travel a lot.
Knowing your payment will be the same when you get back
from a far away place can really help your state of mind.
Most lenders who will give you a fixed rate mortgage will
give you the option to pay off some of the principal early
without any penalties.
This can be a great way to lower your overall amount of
payments or decrease the monthly payments. The interest you
pay all depends on the real estate market when you get that
loan.
It can help to talk to a real estate agent who can
recommend if you should buy now or wait for a more suitable
time.
home loan in the USA. It's very easy to understand and set
up and helps people know exactly what type of commitment
they are making financially.
It has one main benefit over all other types of loan.
Stability. No matter what happens with fluctuating interest
rates, you are guaranteed the same payment each month for
the entire term of your loan.
This really helps give people peace of mind because they
don't have to wonder if their next loan payment will be
higher than the previous one.
Some people are very meticulous when it comes to bills and
don't want to feel like they are gambling on the real
estate market.
This is what helps make a fixed rate mortgage so appealing.
The payments don't change so you have a much better chance
of being able to save up money for home repairs, vacations,
and new purchases.
This loan is also good for people who have to travel a lot.
Knowing your payment will be the same when you get back
from a far away place can really help your state of mind.
Most lenders who will give you a fixed rate mortgage will
give you the option to pay off some of the principal early
without any penalties.
This can be a great way to lower your overall amount of
payments or decrease the monthly payments. The interest you
pay all depends on the real estate market when you get that
loan.
It can help to talk to a real estate agent who can
recommend if you should buy now or wait for a more suitable
time.
Private Mortgage Insurance
When you first buy a home, it can be very frustrating and
complicated but it can also be extremely exciting. There is
no feeling like being able to call a home your own and have
the freedom to decorate it and change it any way you want.
Do you want old wrecked cars on your lawn? Go for it.
Finally build a duck pond of your own? Sure, it's YOUR
house and you can do what you want.
Unfortunately, life happens and sometimes you won't quite
be able to make your loan payments all the time. This is
where private mortgage insurance comes in.
When you first buy your home, most lenders expect you to
pay a large down payment of at least 20 percent or get some
kind of insurance loan protection program that's called
private mortgage insurance.
This insurance coverage will protect the lender just in
case you are ever unable to make your monthly payments.
This insurance doesn't cover anything else though.
If your home catches fire or something, you better hope you
have some other types of insurance. This is only to cover
you if you fail to make your payments.
Even if you don't need it, it doesn't hurt to get private
mortgage insurance just in case. No job is 100 percent
reliable and if you have to relocate or change jobs, you
won't have to worry about your house payment if you happen
to go a week or two without pay. It's better to be safe
than sorry.
complicated but it can also be extremely exciting. There is
no feeling like being able to call a home your own and have
the freedom to decorate it and change it any way you want.
Do you want old wrecked cars on your lawn? Go for it.
Finally build a duck pond of your own? Sure, it's YOUR
house and you can do what you want.
Unfortunately, life happens and sometimes you won't quite
be able to make your loan payments all the time. This is
where private mortgage insurance comes in.
When you first buy your home, most lenders expect you to
pay a large down payment of at least 20 percent or get some
kind of insurance loan protection program that's called
private mortgage insurance.
This insurance coverage will protect the lender just in
case you are ever unable to make your monthly payments.
This insurance doesn't cover anything else though.
If your home catches fire or something, you better hope you
have some other types of insurance. This is only to cover
you if you fail to make your payments.
Even if you don't need it, it doesn't hurt to get private
mortgage insurance just in case. No job is 100 percent
reliable and if you have to relocate or change jobs, you
won't have to worry about your house payment if you happen
to go a week or two without pay. It's better to be safe
than sorry.
Second Mortgage: What is it Exactly?
Everyone has heard a friend or relative complain about
having to take out a second mortgage but don't really know
what that means. Let's find out!
The real term for this is called a home equity loan. This
is a common loan type that homeowners can use for whatever
they want.
A home equity loan requires that you use your house for
collateral just like a normal home loan. There are
different types of home equity loan out there and you can
always use the money for whatever you want.
College, bills, and home repairs are some common uses. You
will need outstanding credit to be approved for this kind
of loan though.
A closed end type home equity loan gives you a big chunk of
money immediately and you can't get another loan until this
one is fully paid.
The amount you can get depends on factors such as how much
your home is worth, your income, credit score, and similar
things. A closed end loan usually comes as a fixed rate
type and allows you up to 15 years to pay it off.
An open ended home equity loan is a little different. This
loan will let you borrow money whenever you have a need for
it.
The loan lender will set up a line of credit that is pretty
much based on all the same factors as the closed end loan.
These usually have an adjustable rate and you can make
payment for 10, 15, or even 30 years.
So why are these called second mortgages? Because you are
adding yet another loan payment that uses your house as
collateral and adding another monthly payment. Though
tempting, it can cause you a lot of problems in the future.
having to take out a second mortgage but don't really know
what that means. Let's find out!
The real term for this is called a home equity loan. This
is a common loan type that homeowners can use for whatever
they want.
A home equity loan requires that you use your house for
collateral just like a normal home loan. There are
different types of home equity loan out there and you can
always use the money for whatever you want.
College, bills, and home repairs are some common uses. You
will need outstanding credit to be approved for this kind
of loan though.
A closed end type home equity loan gives you a big chunk of
money immediately and you can't get another loan until this
one is fully paid.
The amount you can get depends on factors such as how much
your home is worth, your income, credit score, and similar
things. A closed end loan usually comes as a fixed rate
type and allows you up to 15 years to pay it off.
An open ended home equity loan is a little different. This
loan will let you borrow money whenever you have a need for
it.
The loan lender will set up a line of credit that is pretty
much based on all the same factors as the closed end loan.
These usually have an adjustable rate and you can make
payment for 10, 15, or even 30 years.
So why are these called second mortgages? Because you are
adding yet another loan payment that uses your house as
collateral and adding another monthly payment. Though
tempting, it can cause you a lot of problems in the future.
Signs of Good Mortgage Brokers
A good mortgage broker is something every potential
homeowner or experienced real estate investor needs to have
on their side.
There is no shortage of brokers out there and they come in
all shapes and sizes with various personalities.
What people don't realize is that if you have a very
helpful and friendly broker, it can really make a
difference in your entire attitude about getting a loan.
When you have a good mortgage broker, you will usually have
a pretty stress-free loan process and they will be able to
explain it all to you simply and easily.
So how do you know if you have a good broker? There are
some very simple things that will tell you right away if
your broker is good or not.
One of the best ways to judge a mortgage broker is just
with common sense. Does your broker like to talk and have
an excited attitude?
That can definitely improve the experience for you but
there are other factors to consider. Punctuality is very
important and someone missing dates can be infuriating.
If your broker says they will call at 6 pm and they miss it
every time, it might be a problem. You really want someone
very punctual.
The broker should be able to list off mortgages and
programs by heart as well. It's not a good sign if they are
flipping through a book every few minutes to look up terms
and arrangements.
A good way to tell if your mortgage broker is good is to
make sure they are willing to answer any question
imaginable without getting frustrated.
Ask them something a couple times in one sitting just to
see what they do. If it's obvious they are annoyed and
don't ask why you repeated it, they might not be paying
attention and just reciting some spiel they use on
everyone.
homeowner or experienced real estate investor needs to have
on their side.
There is no shortage of brokers out there and they come in
all shapes and sizes with various personalities.
What people don't realize is that if you have a very
helpful and friendly broker, it can really make a
difference in your entire attitude about getting a loan.
When you have a good mortgage broker, you will usually have
a pretty stress-free loan process and they will be able to
explain it all to you simply and easily.
So how do you know if you have a good broker? There are
some very simple things that will tell you right away if
your broker is good or not.
One of the best ways to judge a mortgage broker is just
with common sense. Does your broker like to talk and have
an excited attitude?
That can definitely improve the experience for you but
there are other factors to consider. Punctuality is very
important and someone missing dates can be infuriating.
If your broker says they will call at 6 pm and they miss it
every time, it might be a problem. You really want someone
very punctual.
The broker should be able to list off mortgages and
programs by heart as well. It's not a good sign if they are
flipping through a book every few minutes to look up terms
and arrangements.
A good way to tell if your mortgage broker is good is to
make sure they are willing to answer any question
imaginable without getting frustrated.
Ask them something a couple times in one sitting just to
see what they do. If it's obvious they are annoyed and
don't ask why you repeated it, they might not be paying
attention and just reciting some spiel they use on
everyone.
Types of Mortgage: Which One is Right For You?
So, you are planning to buy your perfect house or
commercial property but don't know what your options are in
the mortgage department.
Well, there are tons to choose from and they are all
tailored to your specific needs. If you have a great job
and money isn't an issue, you can make higher payments and
possibly pay off your loan in as little as 10 to 15 years.
For many people though, they don't have great jobs and need
to best plan for their budget.
Most mortgages differ in just a few ways. They may require
balloon payments up front or toward the end of the loan
period or they might be influenced monthly by ever changing
interest rates.
Fixed rate loans are very popular because you are
guaranteed to have the same bill every month regardless of
interest rates. If you are on a budget, this is a great
option.
Adjustable rate loans differ from fixed rate as they
fluctuate with current interest rates. Don't worry though,
they usually have a cap so you won't be paying twice as
much as the month before. The cap is usually just a couple
percent.
These are just a couple of popular types of home loans. If
you plan on getting a commercial loan, you will have many
more mortgage types available.
Some of these have very low payments for the first year
until your business is established and they they increase
so you can pay them off quickly.
The best bet is to research the different types of loan you
are interested in and discuss them with your broker.
commercial property but don't know what your options are in
the mortgage department.
Well, there are tons to choose from and they are all
tailored to your specific needs. If you have a great job
and money isn't an issue, you can make higher payments and
possibly pay off your loan in as little as 10 to 15 years.
For many people though, they don't have great jobs and need
to best plan for their budget.
Most mortgages differ in just a few ways. They may require
balloon payments up front or toward the end of the loan
period or they might be influenced monthly by ever changing
interest rates.
Fixed rate loans are very popular because you are
guaranteed to have the same bill every month regardless of
interest rates. If you are on a budget, this is a great
option.
Adjustable rate loans differ from fixed rate as they
fluctuate with current interest rates. Don't worry though,
they usually have a cap so you won't be paying twice as
much as the month before. The cap is usually just a couple
percent.
These are just a couple of popular types of home loans. If
you plan on getting a commercial loan, you will have many
more mortgage types available.
Some of these have very low payments for the first year
until your business is established and they they increase
so you can pay them off quickly.
The best bet is to research the different types of loan you
are interested in and discuss them with your broker.
What Is a Mortgage?
Every homeowner knows what a mortgage is but do you? Many
people have heard that term on movies, television shows,
and commercials but don't really know what it really means.
To put it simply, it's a loan where you are using your
house as collateral. The difference between this and a
normal loan is that your house becomes your backup just in
case something happens and you are unable to continue
payments.
Mortgages come in many different forms depending on what
you are looking for with regards to financing. Some
examples are the fixed rate and adjustable type.
These differ in how the payments are set up and whether or
not each payment will be influenced by current interest
rates across the country.
There are also commercial loans if you are planning on
buying an apartment complex or other type of real estate
that has the potential to make you money.
Before you decide to buy a home, it's very beneficial to do
as much research as possible. You should try to learn about
each different type of mortgage and what the payments
actually consist of.
Do they change each month? Should you put a lot of money
down before setting up payments? It can be very complicated
and stressful for almost anyone due to the sheer ending
cost of it all.
Owning a home is a dream for many people and you will want
to make sure you are well educated on home ownership before
you even speak to a broker.
people have heard that term on movies, television shows,
and commercials but don't really know what it really means.
To put it simply, it's a loan where you are using your
house as collateral. The difference between this and a
normal loan is that your house becomes your backup just in
case something happens and you are unable to continue
payments.
Mortgages come in many different forms depending on what
you are looking for with regards to financing. Some
examples are the fixed rate and adjustable type.
These differ in how the payments are set up and whether or
not each payment will be influenced by current interest
rates across the country.
There are also commercial loans if you are planning on
buying an apartment complex or other type of real estate
that has the potential to make you money.
Before you decide to buy a home, it's very beneficial to do
as much research as possible. You should try to learn about
each different type of mortgage and what the payments
actually consist of.
Do they change each month? Should you put a lot of money
down before setting up payments? It can be very complicated
and stressful for almost anyone due to the sheer ending
cost of it all.
Owning a home is a dream for many people and you will want
to make sure you are well educated on home ownership before
you even speak to a broker.
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