mortgage loan: Paying Down Your Mortgage
- 12/21/21 04:04 PM
When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same. Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest payment but leaves the term intact with the same payoff date. The interest rate on the mortgage will stay the same regardless. Prepaying principal can be done at any time but may not be applied until the next payment date. Recasting cannot be done within the first 90-days … (2 comments)
mortgage loan: Buy Before You Sell Options
- 11/01/21 05:22 PM
The decision to buy first or sell first, has always been a little of the "Which came first: the chicken or the egg?" type of question. Is it better to buy another home before you sell your current one or sell the current one before you buy the replacement? Some buyers don't have a choice because they need the equity out of the current home to purchase the new one and possibly, their income limits their ability to qualify for having both mortgages at the same time. However, some buyers, with sufficient financial resources, may have other options available to facilitate the move. … (2 comments)
mortgage loan: 7 Out of 50 Could Save Money
- 05/18/16 08:32 AM
It is estimated that seven million out of 50 million homeowners could save money by refinancing their existing mortgages. Obviously, if the replacement mortgage has a lower rate than your existing one, you will save money. If you bought a home before 2011 and are paying mortgage insurance, you should investigate refinancing to eliminate that requirement. Even if you don’t get a lower interest rate, the savings could amount to hundreds of dollars a month. If a home you purchased since 2011 has appreciated enough, it could easily justify refinancing to eliminate the required mortgage insurance. Most loans don’t require … (2 comments)
mortgage loan: Leverage - A Maximum Advantage
- 03/10/16 05:52 AM
Leverage gives the user a maximum advantage whether it is physically lifting a large object or rapidly building equity in a home. In the case of the home, the high loan-to-value mortgage allows the profits made to be greater than simply the cash invested. A $250,000 home can be purchased on a FHA loan with a 3.5% down payment of $8,750. If the home appreciates at 2% a year, in seven years the equity will grow to $75,920 due to the appreciation and the amortization of the mortgage. That would be a remarkable 36.2% rate of return. It is estimated that homeowners have … (0 comments)
mortgage loan: Rent vs. Own
- 08/02/15 11:02 AM
What's Stopping You? The majority of tenants say they’d like to own a home but continue to pay rent and missing out on financial and emotional advantages. There seems to still be a lot of misinformation in the marketplace. There are a number of programs for low or no down payment options. Veterans can get into a home with no down payment or closing costs. In qualifying areas, USDA has zero down payment programs. FHA requires 3.5% down payment and there are conventional programs for as little as 3% and 5% down. People with credit issues need expert opinions about their specific situation. Borrowers … (1 comments)
mortgage loan: Do You Know How Your Loan is Amortized?
- 05/07/15 02:31 PM
Amortization The word describes the process of accounting that will repay a loan over time. Residential buyers will most commonly be required to have an amortized mortgage. When amortizing a fixed rate mortgage, the payment remains constant for the entire term but the allocation of what goes to principal and interest changes with each payment that is made. Since an amount of each payment retires the principal, the interest due on the next payment is calculated on the unpaid balance after the previous payment was made. This means that an increasing amount is applied to principal on each payment while the amount owed in … (0 comments)
mortgage loan: How Long Do I Have to Wait After a Foreclosure or Shortsale?
- 08/16/12 12:43 PM
How Long Do I Have to Wait?The question concerning people who’ve had a foreclosure, short sale or bankruptcy is when they will be able to qualify for a mortgage loan. It takes different amounts of time to heal credit scores based on the event.The following chart is meant to be a general guide for how long a person might have to wait. During this waiting period, it’s important that the person be current on all payments and maintains a history of good credit. A recommended lender can give you specific information regarding your individual situation and can make suggestions that will … (4 comments)
mortgage loan: Pre-approval Gives Everyone Confidence
- 06/02/12 01:01 PM
Pre-approval Gives Everyone ConfidenceThe benefits of buyer's pre-approval are without question; it is good for the buyers, the sellers and the agents. It saves time, money and removes the uncertainty of knowing whether the buyer is qualified. The direct benefits include: Amount the buyer can borrow decreases as interest rates rise Looking at "Right" homes - price, size, amenities, location Find the best loan - rate, term, type Uncover credit issues early - time to cure possible problems Bargaining power - price, terms, & timing Close quicker - verifications have been made … (0 comments)
mortgage loan: The Best Family Gift
- 12/04/11 08:07 AM
The Best Family GiftA home is a place of your own where you can raise your family, share with friends and feel safe and secure. Other benefits for homeowners include better physical health, higher lifetime income, higher student test scores, and lower teen delinquency.Reduced prices and low interest rates have placed housing affordability at its highest but rates have started inching up in the past few weeks which will directly result in higher payments. Credit, debt ratios and income are the limiting factors that could be keeping you from taking advantage of these opportunities. Isn't it time … (0 comments)
When the situation arises that you have a lump sum of cash to pay down your existing mortgage, there may be different options available. Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same.
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