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.
Read More →Because all cash buyers sidestep the time-consuming loan qualification process, the deal can close very quickly. The primary advantage of buying a home with all cash is completely avoiding mortgage interest. Buyers also save money that would be spent on loan origination fees, required appraisal , some closing costs and various other charges imposed by the lender.
Read More →Your family’s financial situation is an important factor in determining whether you will be able to obtain financing for a loan. You may want to consult with a financial adviser to develop a customized plan to meet the needs of your family. In the meantime, here are some great ideas to get your started:
Read More →The eye of an appraiser
REALTOR® Associate
Contact: (334) 333-1609 or michelle@c21keyrealty.com
An appraisal can make or break a sale, so make sure the appraiser is reputable and experienced. Getting an appraisal can help you also to set the price of your house if you are looking to sell. Remember, an appraiser looks through the eyes of a buyer and what the average buyer is looking for in a new home.
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Buying a new home and selling an existing home at the same time has it’s own set of difficulties. But with planning, you can ensure everything goes smoothly.
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There are many things to think about before you dive into a home purchase. Buying a home is a complicated process; it’s the largest financial commitment most people will ever make, and it can get expensive even after the purchase when it comes to maintenance and renovations. Here are some of the many things that you will want to consider when you are thinking about buying a home.
Read More →Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. However, it also comes with certain responsibilities. Are you ready for homeownership? Here are a few points you should consider before buying a home.
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