100 financing: To Pay Points Or Not To Pay Points - That Is The Question!
- 08/30/07 06:47 AM
How do you "buy" a better rate? Great question - let me tell you. A point -- which equals 1% of the total loan amount -- is an up-front fee that lowers your annual interest rate and total interest due over the life of your loan. So, a one point loan will have a lower interest rate than a no point loan. Basically, when you pay points you trade off paying money later in favor of paying money now. You can pay fractions of points also, meaning you can paying 1.5% to get a lower rate than if you paid 1%. Several major … (6 comments)
100 financing: Help Me! I'm bankrupt!
- 08/09/07 05:06 AM
I had to file bankruptcy - what do I do now? A bankruptcy filing delivers a devastating blow to your credit and FICO score, but it doesn't mean you have to wait 10 years before you can qualify for a mortgage. Many consumers who have filed for bankruptcy have been able to obtain a mortgage, although it is often at a higher rate than someone qualifying for a prime or "A-paper" loan. While credit card companies may care about what happened before you filed for bankruptcy, many mortgage lenders are more interested in your recovery - what you've done since your filing. … (6 comments)
100 financing: Tired of paying PMI? ELIMINATE IT!
- 07/30/07 01:30 PM
Eliminating Private Mortgage Insurance For loans made after July 1999, lenders are required by federal law to automatically cancel Private Mortgage Insurance (PMI) when the loan balance falls below 78 percent of your purchase price - not when you achieve 22 percent equity, which will happen much more quickly with rising property values. (Certain "higher risk" loans are excluded.) But you have the right to cancel PMI (for loans made after July 1999) once your equity reaches 20 percent, regardless of the original purchase price. Keep track of your principal payments. Also keep track of what other homes are selling for in your … (1 comments)
100 financing: Are You Pre-approved or Pre-Qualified? What's The Difference?
- 07/26/07 07:06 AM
Are you pre-qualified or pre-approved for a loan?Before you begin to shop for a new home, you should set up a time to meet with us so we can figure out how much you can afford. This will put you in a better position as a buyer. That's when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house. To get pre-qualified for a loan, we will collect verbal information from you about your debt, income, and assets. … (4 comments)
How do you "buy" a better rate? Great question - let me tell you.;)
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