loan programs: Home Mortgage - 06/27/22 01:39 AM
Home Mortgage
Mortgages are loans used to purchase or finance real estate assets such as a home, land, or building. Home mortgages are loans made by banks, mortgage companies, or other businesses to individuals to purchase a residence (primary, ancillary, or investment).
Mortgages are a type of loan, but not all loans fall under this category. Secured loans, like mortgages, are backed by some asset. This property will be used as collateral for the loan. Borrowers receive the principal amount from lenders and interest payments in exchange for the borrowed money. Borrowers and lenders usually reach an arrangement whereby the former receives principal … (1 comments)

loan programs: VA Loan - 06/27/22 01:38 AM
VA Loan
The Department of Veterans Affairs (VA) guarantees mortgages made by private lenders to qualified borrowers who do not have to put down any money upfront. Borrowers eligible for a VA loan can use the funds for either a first home purchase or refinance an existing mortgage. Homeownership can be a significant financial commitment, but VA Loans can help veterans, active-duty service members, and others get a good deal by reducing the amount they have to put down.
Veterans Affairs (VA) loans are available to both active and retired military personnel and their spouses. Private lenders … (1 comments)

loan programs: Adjustable-Rate Mortgage - 06/27/22 01:38 AM
One type of mortgage loan with a changing interest rate is called an adjustable-rate mortgage (ARM). This type of loan goes by a few names: variable rate mortgage and floating rate mortgage. It is a type of mortgage in which the interest rate may change regularly depending on the performance of a specific benchmark index. This means that your regular payment amount could go up or down. Remember that most adjustable-rate mortgages (ARMs) limit how much the interest rate or payments can go up each year or over the loan period.
Initial interest rates on ARMs are usually lower than those of … (1 comments)

loan programs: Balloon Mortgage - 06/27/22 01:38 AM
A balloon mortgage is a type of financing in which the borrower must pay off the loan in a single, predetermined sum at the end of the loan term. A borrower can reduce their fixed monthly payment by making balloon payments in exchange for making larger payments at the end of the loan term. The borrower may be responsible for paying mortgage interest. Mortgages with balloon payments are short-term loans with a fixed interest rate for five to ten years. Borrowers with high income and credit scores can benefit significantly from these loans.
Lenders are typically selective about who they extend these … (1 comments)

loan programs: Fixed Mortgage - 06/27/22 01:38 AM
An interest rate on a fixed-rate mortgage does not change during the loan's term. Borrowers' prepayment amounts tend to be consistent monthly, making it easy to budget for mortgage payments. The principal and interest payments that make up your monthly mortgage will stay the same no matter how long the term of your loan is.
Benefits of Fixed Mortgage
Protection Against Interest Rate Fluctuations
A significant benefit of getting a fixed-rate mortgage loan is knowing your interest rate for the entire loan term. If interest rates were to double or triple their current levels, you would still benefit from the low rate you secured … (0 comments)

loan programs: Interest-only Mortgage - 06/27/22 01:38 AM
An interest-only mortgage is a type of loan in which principal payments are waived for an initial period, typically the first five to ten years. After the interest-only period ends, the principal begins to be amortized, making the cost of the factors higher. Since you are now paying principal and interest over a much shorter period, your monthly payments will increase significantly.
Nonconforming mortgages, of which interest-only loans are a subset, are hard to secure. Both adjustable-rate and fixed-rate options are available for interest-only mortgages.  Interest-only loans with a set interest rate are now difficult to find. An interest-only mortgage is a … (1 comments)

loan programs: Self-Employed - 06/27/22 01:38 AM
It can be more challenging to get a mortgage if you're self-employed because lenders want to see proof of a stable income stream. Though challenging, getting a mortgage as a self-employed person is possible. If you have excellent credit and can prove that you have a steady income, you will find that your mortgage options are very similar to those of your typically employed family and friends.
When applying for a mortgage, self-employed people do not face any additional challenges. Your background, liabilities, deposits, and earnings will be evaluated alongside other borrowers. Verifying your financial stability is potentially a huge challenge. More … (3 comments)

loan programs: Reverse Mortgage - 06/27/22 01:38 AM
Mortgages for homeowners 62 and older with a significant amount of home equity are called "reverse mortgages," and they are available through particular lending institutions. Because of this, they won't have to sell their home or increase their monthly payments to get some of the money out of the equity they've built up in it. Reverse mortgages offer a distinct benefit over traditional mortgages in that they do not require monthly payments from the borrower. This means that the entire loan balance becomes due and payable upon the borrower's death, permanent relocation, or property sale.
Secured Retirement
With the money … (0 comments)

loan programs: USDA Loan - 06/27/22 01:38 AM
Individuals with lower or middle incomes, or those living in rural areas, may have difficulty qualifying for a conventional mortgage but may be eligible for a home loan from the United States Department of Agriculture (USDA). USDA loans, also known as "Rural Development Loans," are available to qualified borrowers with low or moderate incomes who reside in rural or suburban areas.
Similar to how the VA guarantees loans to eligible borrowers like service members and veterans, the USDA also guarantees loans to qualified borrowers. With the government's support, mortgage lenders can often provide competitive interest rates.
People in rural areas can qualify for … (0 comments)