| |
| |
|
Mortgage & Refinancing Information |
|
|
|
The Zero Down 80/20 Mortgage
This is an excellent loan for those that are lacking the down payment required for other types of mortgages. The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage. If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil. If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ˝% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase price. Many times you will have two choices when it comes to the second mortgage portion of the 80 20 mortgage. The second mortgage can either be a fixed second mortgage or it can be a line of credit. If it is a fixed second mortgage. The interest rate is fixed for the entire length of the mortgage. Most fixed second mortgages are a 30 due in 15. Meaning that the second mortgage is amortized over 30 years, but is due in 15 years. Basically it is a balloon payment. Don't let this scare you. Statistically people refinance or sell their home every 7 to 9 years any ways. If it is a line of credit as the second mortgage. The interest rate will fluctuate as the Federal Reserve adjusts the prime interest rate up or down. The benefit of going with the line of credit as the second mortgage is that the interest rate is normally much lower than the fixed second mortgages rate. It can be 2% to 5% lower. If you are considering doing the 80 20 loan have your loan officer compare the two different options if you have both available to you. You may also want to consider an 80 20 interest only loan. The interest only loan could save you hundreds of dollars in mortgage payments every month. This can help you purchase a more expensive home or keep the payments down on the home you want to buy. About The Author Matthew Allen is a mortgage consutlant with Action Brokerage Services, Inc. in Medford Oregon. He is also the author of "How To Buy A Home With Zero Down, Even If You Have Damaged Or No Credit" You can visit his website at http://www.realmortgageadvice.com.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
How to Find the Best Home Improvement Loan If you're looking for the best home improvement loan for your money it can sometimes seem like an uphill climb. You may not know whether the offer that you've received is the best that you can get, or if you should try to find a better offer elsewhere? but you shouldn't let finding the best home improvement loan stress you out so badly. A Guide to Finding the Cheapest Home Improvement Loan To find the cheapest home improvement loan that you can, you need to realize that there are a lot of factors that can affect the amount that you pay.The equity that you have in your home or real estate is a major piece, but other factors that are considered are your credit history, national and local interest rates, the amount you want to borrow, and even the types of repairs or improvements that you're planning on doing with the money. Home Equity Loan - Not Just For Home Repairs, And Tax Deductible, Too! Thanks to the combination of low interest rates and skyrocketing property values, home equity loans are more popular than ever. The value of home equity loans taken out by Americans has doubled in the last two years, and the market for them shows no signs of slowing down. Why Get Pre-Approved For A Mortgage? One of the most important steps in the home buying process is getting Pre-Approved as early as possible.The Pre-Approval process involves you speaking with a Mortgage Lender about your financial situation, what you'd like to accomplish, and any concerns you have. Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues. They got into the house with ZERO down payment, and only had to bring $600 for the closing costs. How Good a Deal Is Your Banks Mortgage Insurance Plan? When you go to the bank to get a mortgage, you'll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Total Cost Of Credit vs Monthly Payments I read a press release the other day which points to the fact we need to be very careful with our finances. The subject of the release was home mortgages. Find the Best Mortgage Company If you do not wish to commit to living in one place for at least a few years, then owning a house is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner. Refinancing Your House - How to Know Whether to Refinance or get a Second Mortgage Refinancing your house's mortgage is not the same thing as getting a second mortgage. While both allow you to cash out your home's equity, terms and rates differ between the two types of loans. What Are Home Equity Loans? A home equity loan is simply borrowing on the difference of the value of your home and the outstanding mortgage on the house. Lets say, you have bought a home worth $50,000 some time back, after making a down payment of $5,000. Applying for a Home Mortgage Loan Online - The Pros and Cons If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:Pros:1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the 'real' world and ask for heaps of information. A Simple Way to Save Thousands on Your Mortgage Charges How many times do you check you restaurant bill? If not often, I would advise you to do it more, especially when dining on your overseas vacations. Still, much more Americans check their restaurants bill, than the number of homebuyers, who check the charges for their mortgages. Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure "Own your home free and clear in 3 to 4 months. Note paid in full!"How does this statement sound to you? Does it bring out a sentiment of grand larceny or does it peek your interest as a means to quickly and legally increase your personal net worth? Would it be moral to cancel a debt you made in such an easy and unfathomable manner? Most importantly, if you were behind on your mortgage would you pay someone $3,000 to perform this elimination service for you?Unfortunately, the answer for many homeowners is "Yes". Home Loan Confusion Continues Unfortunately, most Americans still do not understand how home loans work and how to take advantage of the wide array of programs available. The way I see it, people are still confused about mortgages in general and real estate finance, in particular. Buying a Home With Bad Credit - Why a Recent Bankruptcy Will Not Stop You From Getting Approved Buying a home with bad credit is possible with the help of a subprime lender even if you have a recent bankruptcy or foreclosure. These mortgage lenders specialize in financing home loans for people with poor credit. 5 Things In Selecting The Best Mortgage - You Should Know Your goal is not only to find the best rates and programs, by searching through a huge number of lenders products, and save yourself thousands of dollars on mortgage payments every year, but also, to save time and hassle by simplifying the loan process and reducing the paperwork. Here are some things you can keep in mind when selecting a mortgage provider. Interest Only Home Loan - Is It Right For You? There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you. Home Equity Loan - A Reverse Mortgage Could Provide a Comfortable Retirement! While only comprising about 1% of all mortgages, the reverse mortgage has gained in popularity in recent years. Federally insured since the late 1980's, the reverse mortgage allows owners of paid-off homes to borrow against the equity in their homes in the form of a lump sum, a line of credit, or in the form of monthly payments. Carolina Mortgage Loans You're selling your home and are looking to relocate to the Carolinas. While researching homes in your new community you discover that you do not know of any mortgage lenders in the area. Home Loans and Mortgages - The Selection Can Be Bewildering For years, when someone wanted to purchase or refinance a home, the choices were simple. The buyer chose either a 15-year fixed-rate mortgage or a 30 year fixed-rate mortgage.
|
| home | site map |
| © 2006 |
