mortgage

This home-buying strategy could come back in style as mortgage rates rise

TransUnion predicts that average rates on 30-year mortgages could hit 5 percent by the end of 2019. In some cases, it could make sense to pay your lender a fee in exchange for a lower interest rate. This is known as “points.” As a result, you may reduce your monthly payments. Before you commit, consider how long you’ll be residing in your new home and whether you might be better off using the extra cash to boost your down payment.

What Can you Do to Avoid Mortgage Foreclosure

Foreclosure can be difficult for anyone to handle, but mortgage foreclosure help is available to almost anyone. Avoiding a mortgage foreclosure can save you from having to find a new place and impacting your credit negatively. This situation can be tough, but here are some things you can do to get help with your foreclosure.

5 Disadvantages of Taking Out a Reverse Mortgage

For a lot of seniors, a reverse mortgage is an excellent method to improving their financial situation during retirement. Reverse Mortgages are providing enhanced financial security, an improved lifestyle, and monetary aid to hundreds of older Americans. However, there are a number of disadvantages. Some of the disadvantages of a reverse mortgage are:

How Much Does a Reverse Mortgage Cost?

Reverse mortgages have become more and more popular as the baby boomer generation ages into retirement. Unlike a traditional mortgage, a reverse mortgage uses your home as collateral against a loan that you can use to supplement your income. However, instead of receiving the proceeds of the loan in one lump sum and making regular monthly installment payments back to the lender, the lender keeps the bulk of the loan proceeds and disperses them to you in monthly allotments. This allows you to use the equity in your home as a way to pay your regular monthly expenses now that your income has become more limited.

What you Need in a Second Mortgage Lender

If you are trying to find a second mortgage lender, you should know what qualities to be looking for. There are many different lending options for this type of loan, which can make it tough to choose. Here are a few things you need to look for in a second mortgage lender.

The Questions you Need your Mortgage Lender to Answer

If you are in the process of purchasing a home or if you’re planning to build a home, it is likely that you will be working with a mortgage lender to arrange financing. The process of securing a home loan can be complicated and confusing. It is important to make sure you understand the terms and responsibilities associated with your loan so you don’t end up trapped in a mortgage you can’t afford. Here are 3 questions that you can ask your potential lender about your mortgage to get you started.

How you Can Calculate Mortgage Costs

Calculating mortgage costs for yourself is actually much easier than it ever has been. Because of the prevalence of the Internet, you now have access that was previously only available to the financial elite. Chief among these tools is the online mortgage calculator that will allow you to break down the complex math of a mortgage into very digestible chunks.

Mortgage Loans 101

Mortgage loans are financial debt obligations people enter into with a bank, credit union, or other financial institution as a way of purchasing a home. Home loans are one of the most common ways to purchase a home today. Unless you have the cash in a bank account to purchase a home outright, you likely will need to use one of these mortgage loans to help you make the purchase. However, there are various types of home loans. Each one offers different features and terms you should know about before you make an investment decision.

What are Fixed Rate Mortgage Loans?

Fixed-rate mortgages are the most widely used form of home mortgage loans. It is a basic arrangement in which the lender calculates the principal amount, using a single interest rate, and then divides the sum equally over an agreed period of years. The most popular terms are 30-year and 15-year fixed-rate mortgages. The 30-year fixed-rate first spread across markets in the United States in the 1930s; it was an alternative to a standard balloon-payment mortgage.

What is a USDA Home Loan?

With the housing market finally starting to regain footing, potential home buyers are in search of homes and mortgage loan programs. There are so many types of home loans out there, it’s hard to know which to choose. Maybe you’ve heard about the USDA (United States Department of Agriculture) home loan. For the right borrower, USDA home loans can be an excellent alternative to conventional loans.

Applying for a HARP Loan

The Home Affordable Refinance Program (HARP) is an alternative financing structure that is meant to allow people who are up-to-date on their mortgages to stabilize their home purchase through refinancing. HARP is meant to focus on helping people who are unable to get traditional financing because of the declining market value of their property.

Home Equity Conversion Mortgage (HECM): Explained

Seniors that live in a house can get money by setting up a reverse mortgage through the Federal Housing Administration (FHA). The Home Equity Conversion Mortgage (HECM) allows those who are 62 or older access to their home’s equity as long as they’ve paid off the majority or all of their mortgage. This basic overview may help you understand more about HECM.

Home Equity or a Reverse Mortgage?

When mortgages first became popular back in the early 1900s, applying for a mortgage was a straightforward process. However, through the years, lending institutions have developed different types of mortgages to meet their customers’ needs. Some mortgages, like home equity loans and reverse mortgages, are used for the original purchase of the house while others draw from your home’s value. If you’ve wondered what they are, how they’re different, or when to use one or the other, read on!

Are you Eligible for HARP Refinancing

You may be considering refinancing your home for a wide variety of reasons. You may want to switch to a fixed-rate mortgage rather than a variable-rate mortgage. You may be struggling financially and may want to lower your payments or your interest rate. Perhaps you want to perform a cash-out refinance and draw some money for investments. Maybe you just want to pay off your mortgage sooner.

When Should you Refinance your Home Mortgage

Refinancing your home mortgage is a major financial decision, but it’s also one that has the potential to save you thousands of dollars over the life of your loan. Refinancing your mortgage can help you to pay less every month, pay your mortgage loan at a faster rate, or perhaps even save your home if you can’t afford your current payments.

How to Apply for a HARP Loan

The Home Affordable Refinance Program (HARP) is an alternative financing structure that is meant to allow people who are up-to-date on their mortgages to stabilize their home purchase through refinancing. HARP is meant to focus on helping people who are unable to get traditional financing because of the declining market value of their property.

The 5 Most Important Terms about HARP Refinancing

The Home Affordable Refinance Program (HARP) has provided much-needed financial relief for thousands of Americans. People who have found that the value of their home has declined may be eligible to participate in HARP. The HARP refinancing program enables homeowners to refinance an existing mortgage so they can receive a stable and secure one.

How to Lower your Mortgage Repayments

Many people believe, quite mistakenly, that there is no way to reduce mortgage repayments once a deal has been struck with a loaning institution. However, the savviest investors recognize that this is one of the main ways to save money over the long term. Below are just a few ways that the average person can reduce home mortgage repayments.

Mortgage Loan Types Available To First Time Home Buyers

As a home buyer, it is paramount that you learn the different types of mortgage loans to ensure you understand which one is the most suitable for you. If you understand the loans available, and which ones you qualify for, you will be better enabled to maximize long term benefits while minimizing cost. Let’s start talking about loan terminology so you won’t be in the dark when you start house-hunting.

Basic Mortgage Terms You Need To Know

When you’re buying your own home, you had better go into it with an understanding of all the terms used in the mortgage business so that you really know what you’re getting into. Knowledge is power, and this is especially true when talking about large purchases like buying a house.

10 Questions You Need To Ask Your Mortgage Lender

Ask these 10 questions and use the answers you get to decide whether to go with a mortgage lender. This is a very important step of the process and should not be taken lightly. You should come to a potential lender with a list of questions already prepared. Do not sign any documents until you have asked your questions, and had them answered satisfactorily!

Top 6 Most Common Mortgage Questions

You’re applying for a mortgage and you feel overwhelmed by the acronyms, numbers, and terminology. You don’t know where you should start. Well, you’re not alone. The majority of people are almost completely in the dark when it comes to the finer points of their mortgage agreements and don’t know what to ask when applying. For your own sake, remember that no question is a stupid question when it comes to your finances, and you should feel comfortable asking your mortgage broker anything you need.

Fixed Rate Mortgages

Fixed-rate mortgages are the most widely used form of home mortgage loans. It is a basic arrangement in which the lender calculates the principal amount, using a single interest rate, and then divides the sum equally over an agreed period of years. The most popular terms are 30-year and 15-year fixed-rate mortgages. The 30-year fixed-rate first spread across markets in the United States in the 1930s; it was an alternative to a standard balloon-payment mortgage.