Archive for the ‘Mortgage Advice’ Category
Explanation Mortgage Types
Types of Mortgages and Home Loans
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Types of mortgages: There are several basic types of home loans however there are very few national mortgage lenders that will advertise them all. Make sure you know what you want and talk to your mortgage broker or home loan lender to see if they can offer you the mortgage of your choice.
All mortgages have a term, or a specific period of time to repay the loan. Common terms are 5, 10, 15, 20, 25 and 30 years. Recently, 35 and 40 year mortgages have started to make an appearance on the market but are still relatively uncommon.
Types of Home Loans and Mortgages:
Adjustable Rate Mortgages or ARM’s: this type of mortgages is where the interest rate and the principal and interest payment vary throughout the life time of the loan. These mortgages are great when interest rates are lower but can be a pain when interest rates are high. Get a quote for an Adjustable Rate Mortgage.
Balloon mortgages: this type of mortgages is where the payment is typically calculated over a 30-year term but the balance actually comes due much earlier, such as 5 or 7 years (at which you must pay off the balance or remortgage the property). This type of mortgage is not common in North America but is frequently found in the European mortgage markets. Get a quote for a Balloon mortgage.
Fixed rate mortgages: also known as FRM’s: is a type of mortgage where the interest rate and principal with interest payment remain the same throughout the life of the mortgage loan. This is of course a desirable mortgage if one can lock in a great interest rate. Get a quote for a fixed rate mortgage.
Graduated payment mortgages or GPM’s: is a type of mortgages that have a fixed interest rate, whose payments gradually increase over a predetermined time increments and then level off. Get a quote for a graduated payment mortgage.
Hybrid mortgages: With this type of mortgage the loan remains fixed for a period of time such as 3, 5, or 7 years, and then adjust like an ARM mortgage. Get a quote for a hybrid mortgage.
Interest-only mortgages: the names says it all. These types of mortgage loans, usually an ARM or a hybrid, allow you to make interest-only payments during the first 5 years to 7 years. After which, you are expected to repay principal and the interest in order to pay off the loan within the remaining 25 years of its term. Get a quote for an interest only mortgage.
Payment-option loans: typically called by different names the name usually incorporates the words option or choice. These loans offer you the borrow a choice of two or three payments each month, but their complexity grows right along with those choices. Get a quote for a payment option mortgage.
The first two choices are fairly straightforward: You can pay the full amount of principal and interest owed that month, just as you would with a traditional mortgage, or you can choose to pay even more and pay off a 30 year mortgage on a 15 year payment schedule.
Be carful, the other two choices can get borrowers in over their heads if you aren’t careful. In any given month, you may opt to pay only the interest that is due that month, or the you may choose an even smaller minimum payment, an amount that covers none of the principal and only part of the interest that is owed. To make things even more complicated, these loans often have interest rates that adjust as frequently as every month. And payment caps could allow your minimum payment to rise by as much as 7.5 percent in a given year
Reverse annuity mortgages or Ram’s: is a reverse type of mortgages that actually pay an annuity while equity in a house decreases. These are for individuals 62 years or older who are looking to tap the equity in their homes for living or other expenses. Get a quote for a reverse annuity mortgage.
Government loans: are simply mortgage loans that are insured or guaranteed by the federal government. They are most typically fixed rate or adjustable rate mortgages. Government loans account for 20% of all mortgage loans.
There are three types of government mortgages:
Federal Housing Administration (FHA) loans
Department of Veterans Affairs (VA) loans
Farmers Home Administration (FMHA) loans
There are also a class of mortgages that require reduced or no documentation. These are also referred to as Alt-A mortgages. These are typically standard fixed or adjustable mortgages with reduced documentation requirements. There are no documentation loans where a person is applying only on the strength of their credit score and down payment. There are also many variations on reduced documentation loans, such as stated income (SI), no income (NI) verification, no asset (NA) verification, no ratio (NR - referring to the debt ratio calculations), no employment verification (NE), and many combinations of the above. These loans are typically intended for self-employed individuals who may have trouble documenting their true income (or who just do not want to go through the hassle). They carry with them more risk for the lender, so they typically have higher interest rates than traditional prime, or A grade loans.
Secondary mortgage:. These are mortgages that have a lien position behind the primary mortgage on a residence, not unlike mortgage refinancing (for the top mortgage refinancing rates see our other posts) . These come in two forms:
Secondary loans which are similar to primary mortgages (may be done through mortgage refinancing).
Home equity lines of credit (HELOC) which are more like credit cards. You are approved for an amount, but you draw upon the line of credit when you need it and pay it back in a manor similar to credit card payments.
For some recent news on the available types of mortgages you may want to look at your local banks, contact you mortgage broker at Ditech mortgage.
Types Of Mortgages Explained
Are you wondering on which is the best mortgage loan to choose from? It’s really simple, there’s really no answer. In choosing those mortgage types, which are best in fulfilling your.
What a Home Mortgage Loan Advisor Can Accomplish for You
Help you choose the right mortgage for you. By clearly explaining the different types of mortgages and repayment structures, a mortgage broker can walk you through the mortgage.
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Suze Orman On Mortgages
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Preparing Your Offer to Buy Your New Home: Buying a home is an exciting and potentially nerve racking time. Thankfully preparing an offer is one of the last steps in the home buying process. By this time you have found a property that suites your needs (and hopefully a little more) and your ready to finalize everything. If your comfortable doing this on your on great, however it is strongly recommended that when you are preparing an offer you have a real estate agent or another certified professional by your side. When writing up an offer there a few points to consider: how much will you offer for the home? Do you have and terms or conditions that the seller must meet? How much money are you willing to put down on good faith (this is called earnest money)? Let’s look at these questions in more depth to make sure you make the best decision in preparing your offer. |
How much will you offer for the home:
Maybe you don’t like to negotiate or the seller is asking a fair price other wise you have to consider how much your willing to spend on the purchase of the property. If the market is booming you may not have a choice however its rare to pay the asking price. Exception to this rule include: situations where two parties want the property and start a biding war, there are previous offers pending on the home, or you think you cut a deal on another are of the deal, like closing costs. Keep the following in mind how much you can afford for your mortgage, do you have any completion for the property, why is the seller selling, do you need to spend any more money on repairs or renovation to the home, is the price competitive with the market and of course…how much do you want the property.
Placing terms and condition on an offer:
It is important to note that once you place conditions on an offer they must be met, other wise you are not bound to the offer. Common conditions include: your ability to obtain mortgage financing (this is a must as if left out you stand to lose your deposit). Get a home inspection and report done on the property, if you don’t and miss something like a bad foundation you’re in for a nasty and expensive surprise. Once the inspection is complete and you’ve read the report carefully you can make decided if you should add any further conditions or ask the seller to make the repairs. Your real estate agent will help you with any other terms or conditions they feel you should add to your offer.
Putting money down on the property is a sign of good faith and is away of securing your offer on the home. When you submit an offer, be prepared to make a deposit. The deposit is put toward the amount you’ve agreed to pay for the home in your offer. If your offer isn’t accepted or the terms aren’t met the deposit is returned to you.
In most cases people are not in a big hurry to sell their homes so its up to you as the buyer to make a good impression. It is in your best interest to let the seller know you’re serious by: Being preapproved for a mortgage from a financial institution or another lender. Having done the prequalification for the home loan at X amount of dollars when you put in your offer will let the other party know you’re not wasting anyone’s time. Note: you may want to keep the amount you’ve been preapproved for under raps until you’ve come to a decision regarding the amount you’re willing to offer; after which time you can go to a prime max mortgage lender and get the document stating you will have no problem with following through on your offer to buy. That way the seller never needs to know that you may have been approved for more.
Now after all the work of finding a property that suits you, looking at the advantages and disadvantages of a mortgage and making that leap to organize and submit your offer comes quite possibly the most nerve raking part if the process. Once your offer is in the seller will have a chance to review your offer and decided whether or not to accept it. Don’t be surprised if the seller counteroffers. Understand counteroffers are not always about the money (although, more often than not it is) it may be in relation to the terms and conditions laid out in your offer. You’ll have decided where to draw the line, what are willing to accept and how much are willing to pay period. Be prepared to go back and forth until both parties are content (if you dislike negotiating, make sure you have a professional onboard). Keep on mind if the seller does counter you have the ability to reject the offer at which point the deal is either off or the seller will try to compromise (it is however best to attempt to find a solution that meets both of your needs, after all if you’ve placed an offer down to buy a home you must like it enough to be a little flexible). With a bit of luck and perhaps a tweak here and there your offer will be accepted and both you and the seller will be happy. Which means it is time to go back to your mortgage lender and finalize your financing.
That essentially covers how to make an offer, as I have said several times, unless you are a professional make sure you have a licensed pro that can help and guide you through the process (it’ll just make everyone’s life so much easier). For information on how mortgagerates are determined see our post. Fixed rate mortgages at great rates here.
Suze Orman: Moneysmartz Personal Finance Guide and Blog
Suze Orman from the Moneysmartz Personal Finance Guide and Blog, your guide to smarter financial decisions.
ETrade Begins Mortgage Lending Again
E*Trade Financial is reportedly back in the mortgage business after previously exiting both the retail and wholesale lending channels, according to.
ponte vedra mortgage mortgage
insuranceMHLoans provides nationwide financing for manufactured and mobile home owners. We pride ourselves in being a full service lender, meeting your needs and exceeding your expectations. Most mortgage.
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Posted in Mortgage Advice | 
Tags: etrade mortgages, mortgages in ponte vedra, suze orman mortgage | 
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How Does a Reverse Mortgage Work
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In this article: Reverse mortgages explained plus the dangers and pitfalls.
A Reverse Mortgage is leveraged against the deed to the property, not unlike a normal mortgage. The differences between a reverse mortgage and a regular mortgagee are:
The most outstanding difference is no doubt the lack of the typical mortgage payments. With reverse home loans you don’t pay monthly interest payments as it is indented to help with cash flow of the house hold. Every month the interest accumulates and is put towards the amount of the loan.
What are reversible mortgages? The qualification process for a reverse mortgage is also different, in that it is not based on your income or credit rating. In North America you are eligible for a reverse mortgage if you are 60 years of age or older and own you’re property/home making this the easiest mortgage to qualify for and great for those on a fixed income. You must live in the home that you have taken a reverse mortgage on as your primary residence, and so long as you live there you make no payments towards the loan.
There a certain amount of security build in to reverse mortgages the amount of the loan cannot exceed the appraised value of the property. One of the main concerns most have in regards to taking a loan of this nature is: Can the accumulated interest owed surpass the value/ equity of the home. This is extremely unlikely for the following reasons:
There is a built in guarantee that stipulates that the home owner will only have to pay what the property is worth at the time of sale.
As the chart illustrates below, over time the average property will appreciate. Since the equity is much more likely to go up over the years and the mortgage loan amount is typically only up to 40-50%.
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Year |
Home Value |
Loan Amount |
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1 |
$300,000.00 |
$120,000.00 |
|
2 |
$315,000.00 |
$128,400.00 |
|
3 |
$330,750.00 |
$137,388.00 |
|
4 |
$347,287.50 |
$147,005.16 |
|
5 |
$364,651.88 |
$157,295.52 |
|
6 |
$382,884.47 |
$168,306.21 |
|
7 |
$402,028.69 |
$180,087.64 |
|
8 |
$422,130.13 |
$192,693.78 |
|
9 |
$443,236.63 |
$206,182.34 |
|
10 |
$465,398.46 |
$220,615.11 |
* There is often confusion when it comes to reverse mortgages and refinancing. For more on mortgage refinancing and rates, please see the link. For current WV home loan rates go here.
How Does a Reverse Mortgage Work?
How does a reverse mortgage work and when it is a good idea to use one? This is a common question for homeowners over a certain age lately, and the reasons are obvious. Reverse mortgages.
Reverse Mortgage Benefits and Pitfalls
Q: What is your opinion of reverse mortgages? We have a home assessed at $157000. Our nest egg is being eaten away and I was wondering about the benefits and pitfalls of a reverse mortgages.
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National Mortgage Lenders
How to Find the Best Mortgage Lenders:
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Best Mortgage Lenders. Most find the process of looking for a mortgage lender a daunting prospect. The challenge is not in finding the best mortgage lenders, but sorting through the piles of banks, online mortgage lenders, mortgage brokers and others in the mortgage lending industry just waiting to take your home loan application. How do you choose the best mortgage lender that will offer you the best deal? In shopping for the best mortgage lender you should first go to the bank or credit union where you already have a checking or savings account (or any other financial institution that you have a relationship with) and ask what types of mortgages and at what rates they can offer you as a loyal current customers. Make sure to ask friends and family for any referrals to loan officers and mortgage brokers / mortgage companies that were able to provide them fast quotes, professional service and helped them to find the most competitive mortgage rates. |
A good mortgage company or broker will have your best interest in mind and should keep you on track if you start to get a little overwhelmed. After all, if you were to take out a mortgage for $300,000, at 5.50 percent interest amortized over 30 years, you end up spending close 355,000 in interest… so you really deserve to be treated as a very important customer especially when you are spending that kind of money.
As a side note: before speaking with a a mortgage preofessional, make sure you have how much you can borrow calculated for your mortgage. If you need help figuring out mortgage payments including double payments, see our list of calculators.
One important decision will be whether to pursue a mortgage through mortgage lenders on your own or to use the services of a mortgage broker. While a good mortgage broker can find the best mortgage rate quote for your loan among several of the top mortgage lenders, it’s important to understand that brokers don’t have special access to deals that are unavailable elsewhere.
As with any major decision do your home work on the mortgage broker. Mortgage brokers are not obligated to find the mortgage rates and deals that is best for you and some have been known to partner up with a mortgage lender with the mortgage that offers the broker the greatest profit, instead of the lowest cost to the you, the client (of course they make it sound like it is the best mortgage lender etc.).
To find the best mortgage lender you may want to ask a real estate agent for who they would recommend as the best mortgage lender. Despite that they are brokerage agencies that have their own in-house mortgage lending or affiliated mortgage company, a good agent won’t limit their referrals to just one affiliate mortgage company or mortgage lender.
Mortgage companies can be a valuable resource. Whether you are trying to buy, sell, or invest they can provide you with what you need to get a running start. If you are a buyer or investor, there are mortgage lenders who can get you a loan as long as your credit score is above 500 or if you have some equity to offer as collateral.
Lenders offer different options based on your credit score, length of employment, income, and other factors. If you have bad credit it is good if you have some equity in other real estate you can use to purchase more real estate. Otherwise you would have to put a large amount of cash down on the deal in order for them to give you loan. For reversable mortgages and mutual mortgage refinancing see the links for more information.
How To Choose Mortgage Lenders
Mortgage lenders come in all shapes and sizes. You can, for example, choose from local lenders or from lending institutions with a national presence.
Top HECM Lenders
Top 10 lenders continued to take share from the rest of the marketplace in March, generating 43% of volume year to date, up almost 5 points from last year’s 38.1% reading. One Reverse Mortgages.
NRMLA Announces Certified Reverse Mortgage Professional Credential
The National Reverse Mortgage Lenders Association announced that it’s developing a Certified Reverse Mortgage Professional-Loan Origination credential.
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