When you apply for a mortgage, you’ll be asked to fill out a standard loan application. It has about 60 questions on it, and it identifies whole categories of your personal finances including the following: Read the rest of this entry »
We’ve been talking about this quite a bit, but let’s be sure we fully understand what it is. A credit score is a numerical assessment of your credit status. It helps a lender determine how much of a risk you are. It suggests whether or not you’ll pay your mortgage payments promptly. Read the rest of this entry »
- Bad debts. Here the credit report says that you ignored a debt and failed to pay it back. You could be in collection, and/or there could be a judgment against you. Why would a new lender want to give you a new mortgage when you haven’t paid back a former lender? Read the rest of this entry »
Today, if you have a good credit score, you can have the lender absorb most if not all of your closing costs. It’s done in one of two ways.
The first way is to add the closing costs to your mortgage balance. For example, you have a $100,000 mortgage and your closing costs are $3,000. Read the rest of this entry »
Be sure you understand exactly what you’re getting. Too often in their haste to get into a property, borrowers neglect to ask about the perils of negative amortization. And some lenders have not always been fully up front about explaining it. Ask if your mortgage negatively amortizes. Ask for examples of how this works. Be sure you understand and agree to it before moving forward on your mortgage. Read the rest of this entry »
The big advantage, of course, is that you can control your monthly payment. You can adjust it to fit your financial situation. Ideally when times are good for you, you can pay a higher monthly payment. When times are rough, you can pay less, or even nothing. Thus, the option mortgage gives you far greater control over financial destiny. Read the rest of this entry »
4May
Typical Option Mortgage Choices for Making the Monthly Payment Part 2
Dave | Category: Business | No Comments
- Designate a portion of your payment to go to life and/or mortgage insurance. This feature is found primarily on mortgages offered through mortgage brokers by insurance companies. Read the rest of this entry »
30Apr
Typical Option Mortgage Choices for Making the Monthly Payment Part 1
Dave | Category: Business | No Comments
- Make your regular monthly payment. Often you have an ARM, and the interest is calculated monthly; thus your monthly payment will vary a lot depending on the current market interest rate. Some option mortgages feature a fixed-rate mortgage, and in that case, the basic monthly payment is also fixed. Here part of your payment goes to principal and part to interest. Read the rest of this entry »
Thus far we’ve looked at most of the options available to you when you want to get the lowest payment possible. However, there’s one that we’ve not yet touched on, and it’s called the option mortgage. Read the rest of this entry »
When You Buy In the above discussion, we saw how to get PMI removed once you’ve acquired the home and mortgage (after waiting a few years). However, that doesn’t help very much when you want to make a purchase. Is there any way to avoid PMI when you’re buying? Read the rest of this entry »
