MORTGAGE
Next Entries »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 [...]
What about a 15-year v. 30 year loan?
Monday, January 14th, 2008The difference in payments and overall savings between a 15-year fixed-rate loan and a 30-year fixed-rate loan depends on the interest rate and the loan amount. Using a $100,000 loan and 7.25% interest rate as an example, monthly payments on the 15-year note would be $912.86. Monthly payments on a $100,000 loan at 7.25% fixed [...]
Are 40-year mortgages a good idea?
Monday, January 14th, 2008Smaller monthly payments are the primary advantage of adding 10 years to the traditional 30-year mortgage, but real estate experts say the shorter-term loan usually is more beneficial for the home buyer. The drawback becomes apparent simply by calculating the cost of additional interest payments, which can total thousands for a few dollars difference in [...]
Can someone who is unemployed get a loan?
Monday, January 14th, 2008Generally, 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, generally 25 percent or more. These “no-doc” loans [...]
What are no-doc loans?
Monday, January 14th, 2008“No-doc” loans are mortgages for which lenders require very little loan documentation as long as the borrower puts down a sizable down payment, generally 25 percent or more.These mortgages are common among self-employed people who say they earn a certain amount of money but whose tax returns show that their earnings are much lower.
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