As a renter, you can easily spend a half a million dollars or even more on rent over the years ($1,500 a month for 30 years equals $540,000) and in the end wind up where you started – owning nothing. Or you can purchase a house and spend the amount of money paying down a … Continued
You can still get a conventional loan with less than 20% down, though in general these loans are more expensive for you in the short term and may be in the long term as well. If you put down less than 20%, you must pay mortgage insurance (known as PMI). The FHA loan program under … Continued
That hinges on a number of factors, including the cost of the house and the type of mortgage you obtain. In general, you need to acquire enough money to cover three costs: earnest money – the deposit you make on the home when you submit your offer, to prove to the seller that you are … Continued
Reverse mortgages are unique home loans marketed to senior citizens, 62 and over, who have built up equity in their homes and need cash for living expenses. Senior homeowners can turn some of their home’s value into cash without having a monthly mortgage payment. When the homeowner dies, the house is sold to pay off … Continued
Most loans have 4 parts: Principal: the repayment of the amount you actually borrowed; Interest: payment to the lender for the money you’ve borrowed; Homeowners Insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and Property Taxes: the annual city/county taxes assessed on … Continued
HUD homes can be a very good deal. When a homeowner with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. The home is then sold at market value as quickly as possible. Read all about … Continued
There are many types of mortgages, and the more you know about them before you start, the better. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 or 15 years. The advantage of a fixed-rate mortgage is that you always know exactly how … Continued
Advantages: Borrowers build equity much more quickly due to shorter amortization schedules. Overall interest paid is dramatically lower than those on longer-term loans. Interest rates are lower than 30-year loans. Disadvantages: Monthly payments can be significantly higher than those on 30-year loans. Restricts homebuyers to smaller houses than they might be able to afford with … Continued
Advantages: Offers the chance to borrow money on a long-term basis without having to worry about the interest rates or payments changing. Monthly payments are lower than those on 15-year loans because the interest is amortized over a longer period. Lower monthly payments free up money which borrowers can use for something other. Higher interest … Continued
While mortgage lenders control who gets approved for a loan and on what terms, actual mortgage interest rates themselves are largely determined on the Secondary Market, where mortgages are bought and sold. The Secondary Market or mortgage investors buy loans that lenders make and either hold them in a portfolio or bundle them with other … Continued