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| Home Loans - Mortgages and Home Improvement Loans |
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Real Estate Finance Strategy that Few People Consider
If you are considering a new home loan anytime soon, and you do not want to get an adjustable rate mortgage (remember, ARMs are very strong loans), you should consider a 2/1 buydown. This is a great mortgage program for people who require a smaller payment now, knowing that they will have more money in the following years. Here's how it works. You pay an additional premium on your loan amount to get a 2 percent improvement on the rate. So, if the 30-year fixed rate mortgage is 6 percent, you will get a rate of 4 percent in the first year of your loan. In the second year, your rate will go up one percent to 5 percent, and in the third year, your rate will increase to the rate it was when you locked in your loan, the 6 percent in this example. Then, it will remain fixed at that rate, until you pay it off, sell or refinance. For people afraid of adjustable rate mortgages, this is a very powerful loan. It's also great for people buying their first home or for newlyweds, who think they have to rent, before buying. Remember, there are many ways to get into a home. This program is one of them. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com. Get his free mortgage finance course at http://www.winningthemortgagegame.com
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RELATED ARTICLES
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These often have a very low interest rate (In most cases even lower than home equity loans). A Home equity lines of credit acts as a form of revolving which your home equity services. Home Buyers Face Decisions that Affect Their Long-Term Financial Picture Taking the step for prospective home buyers.into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals. What is a Mortgage? A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home. How To Save Thousands in Interest on Your Home Mortgage! So you have a mortgage on your home or planning to get one? Here's something to consider if you want to reduce your interest payment and save on thousands of dollars. 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Non-conforming Home Loans vs Conforming Loans The simple definition of a "non-conforming home loan" is: You have a job and can make the payments. Your credit is used only to determine your interest rate and the loan amount to value of the home ratio. This ratio is referred to as your "LTV" or "Loan To Value". There are many lenders who will lend to borrowers who are in foreclosure or who are currently in a bankruptcy. Home Equity Loan ? Beware of the lingering lien! A problem that often arises when people try to refinance their home is the discovery of a pre-existing lien from a previous loan that was not removed by the lending company. The cost of removing a lien and returning the title to the homeowner, a process known as reconveyance, is usually included in fees associated with a home equity loan. When the loan is paid off, the lender is generally responsible for removing the lien, so that public records show the property to be unencumbered. There are various reasons for why the lien isn't always removed ? oversight on the part of the lender, especially during heavy periods of refinancing, is often the problem. Occasionally, the problem can arise when a lender is sold to another company or when that lender goes out of business. No matter what the cause, a lien that hasn't been removed can come back to haunt a homeowner. If a homeowner is in the process of refinancing a home and discovers an old lien that hasn't been removed, the entire refinancing process can be held up for weeks. This can be critical if the owner is trying to lock in an interest rate prior to closing. The problem can also arise when a homeowner is trying to take out another home equity loan, perhaps to facilitate debt consolidation or home improvements. Here are a few things you can do to avoid this problem: Get a copy of your credit report. If there are any errors, particularly errors showing an open line of credit or a home equity loan that has been paid off, contact your lender. Keep your paperwork from all real estate loans, even if you have already paid them off. Then you will have them at hand should you need to demonstrate that you have fulfilled your obligations. If the lien shows up on public records or a credit report, but the original lender says that you have paid it, have them send you a copy of their documentation regarding your reconveyance.As with most issues that come up when financing or refinancing a home, this one can be resolved by remaining diligent and keeping proper paperwork. As always, it's a good idea to check your credit report regularly, particularly if you plan on taking out a loan in the near future. First Time Buyer Mortgages ? Transforming Homeless into Property Owners Having just settled in life, you are finding the rentals putting too much of a burden on your finances. 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