Home Loan Options
« Previous EntriesWhat is a wrap-around loan?
Monday, January 14th, 2008“This method of seller financing is risky if the underlying first loan has a “due on sale” clause because the loan might be called due when the first lender becomes aware that the property has transferred title,” says Dian Hymer, author of “Buying and Selling a Home, A Complete Guide,” Chronicle Books, .A seller usually [...]
How do you find out if a loan is assumable?
Monday, January 14th, 2008Look to the loan agreement to determine if it is assumable by someone else. Then talk to the lender about specific requirements based on the value of the home.Assumable loans permit one borrower to take over a loan from another borrower without any change in the loan terms. Such loans still exist but they aren’t [...]
What about an all-cash offer?
Monday, January 14th, 2008Although most home buyers could never buy a property with all cash, anyone considering such a move (or who has bought a lottery ticket lately) may be wondering how to approach such a deal.Because buyers sidestep the tedious and time-consuming loan qualification process, the deal can close very quickly. In addition to fewer hassles and [...]
What about nothing down?
Monday, January 14th, 2008Though some real estate experts advise against it, home buyers interested in buying a house with nothing down can do so. But it’s not easy finding these loans and in some cases they can be risky. Occasionally, a builder will offer no-down loans to induce sales in an otherwise slow-moving project. Desperate sellers also may [...]
Is equity sharing a good idea?
Monday, January 14th, 2008Equity sharing is not as popular in a slowly appreciating real estate market as in a rapidly appreciating one (when equity investors are easy to find).Nevertheless, a form of equity sharing called tenants-in-common partnerships is becoming more popular, particularly in high-priced markets. First-time buyers are the most interested in TIC arrangements because it gives them [...]
Are there no-down payment home loans?
Monday, January 14th, 2008Though some real estate experts advise against it, home buyers interested in buying a house with nothing down can do so. Occasionally, a builder will offer no-down-payment loans to induce sales in an otherwise slow-moving project. Desperate sellers will also promise to finance the down payment to get out from under a property. A veteran [...]
What is a reverse mortgage loan?
Monday, January 14th, 2008A reverse 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. If the borrower dies [...]
What about these ads for no-cost loans?
Monday, January 14th, 2008In many states, real estate regulatory agencies are cracking down on such advertising. The very term, “no-cost” loan, is misleading because borrowers are actually paying a higher interest rate in exchange for not having to pay fees or closing costs up front when the loan is secured.A “no-points” loan is one for which the lender [...]
Is there such a thing as a no-cost or no-fee loan?
Monday, January 14th, 2008Not really. While some lenders occassionally promote “no-cost” loans, banking regulators have cracked down on these misrepresentations. Advertised “no-fee” loans may actually cost the borrower more over the long term because these costs are often rolled into the new note through higher interest or more principal.A typical no-fee loan is one where the points charged [...]
What about splitting my mortgage in two and paying bi-weekly?
Monday, January 14th, 2008Some people set on paying off their home loan early and reducing interest charges opt for a biweekly mortgage. Monthly payments are divided in half, payable every two weeks.Because there are 52 weeks in a year, the program results in 26 half-payments, or the equivalent of 13 monthly payments per year instead of 12. Using [...]
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