Drawbacks of home equity loans
Originally published on September 28, 2009
Taking out a home equity loan against the value of your property can backfire if you fail to avoid these common pitfalls in the borrowing process.
Read More →Would you refinance to get an interest rate below 3%? What if that rate would only last for five years? Read this article before deciding…
Read More →Fannie Mae and Freddie Mac: a look at mortgage lending without them
Originally published on April 25, 2011
Some legislators say we don’t need mortgage giants Fannie Mae and Freddie Mac. What would happen if lawmakers got their way?
Read More →Find the home loan that fits your needs
Originally published on February 10, 2010
A solid game plan can help you narrow your homebuying search to find the best home for you.
Read More →The United States Department of Agriculture (USDA) has a Rural Development program to help home buyers purchase homes in certain areas with no money down. Read more to see how both buyers and sellers can benefit from this program.
Read More →If you are a veteran and are thinking about getting a VA loan, here are a few things that you need to keep in mind.
Read More →Make your house FHA-loan friendly
Originally published on June 2, 2010
Know the basics of FHA loan rules and you stand a better chance of selling your house or condo. If your house passes the FHA rules, it will appeal to buyers who plan to use an FHA-insured mortgage. If your house doesn’t qualify for an FHA loan, you’re cutting out 30% of potential buyers.
Read More →Unless you have enough money to pay for a house yourself, you’ll need a mortgage loan. A mortgage is a loan you take out to finance the purchase of your home. It is also a legal contract stating that you promise to make a monthly payment until your loan is paid off.
Read More →Generally, lenders will not make loans to unemployed persons because someone without an income would seemingly have no way of making monthly mortgage payments. However, there are home loans for which lenders require very little loan documentation as long as the borrower puts down a sizable down payment.
Read More →A Balloon Mortgage is a loan in which the entire unpaid principal becomes due and payable on a given date, five, ten, or any number of years in the future. The monthly installments are not large enough to repay the loan by the end of the term, and as a result, the final payment due is the lump sum (balloon payment) of the remaining principal.
Read More →A wrap-around is attractive to lenders because they can leverage a lower interest rate on the existing mortgage into a higher yield for themselves. Usually, but not always, the lender is the seller. In general, only assumable loans are wrapable.
Read More →A bridge loan is short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow.
Read More →A reverse annuity mortgage is a special type of loan available only to older homeowners with full or nearly full equity in their homes. Such owners can borrow against the equity they have built up over the years, but no repayment is necessary until the borrower sells the property or moves elsewhere.
Read More →A home equity mortgage, like a second mortgage, lets you tap into a percent of the appraised value of your home, minus your current mortgage balance. Like a line of credit, you will not be charged interest until you actually make a withdrawal against the loan, although you will be responsible for paying closing costs.
Read More →Assumable loans permit one borrower to take over a loan from another borrower without any change in the loan terms.
Read More →If you are working with a builder in a subdivision or development you may be able to obtain a standard mortgage loan. But if you’re hiring contractors, electricians, plumbers, and painters, you will probably need a construction loan, which provides funds to pay subcontractors as work progresses.
Read More →An adjustable-rate mortgage (ARM) is one that the interest rate changes over the life of the loan – according to the terms specified in advance. The interest rate fluctuates based on several money market indexes, which cause the cost of funds for lenders to vary. All ARMs are amortized (paid down) over 30 years.
Read More →A fixed-rate mortgage keeps the same interest rate for the life of the loan. For most people, especially first time homebuyers, this is the best option because you pay the same monthly principal and interest rate.
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