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Quick Mortgage Tips for Home Loans, Equity Loans, Reverse Loans, Cash-Out Loans and Refinance Loansby: Chris Robertson
If you're considering a mortgage loan, you might be wondering what options are available. Today, there are many options
besides the conventional methods of obtaining a mortgage. Whether you're applying for a home loan for a new home, a refinance loan,
an equity loan, a HELOC, or a reverse loan, you should be aware of what each loan entails.
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Buying a New Home When buying a new home, you'll need to be approved for a new home loan
through a lender, or ask the seller to finance the home for you. Before
applying at a lending institution, research your options. Determine how
much "house" you can afford. Use online mortgage payment calculators to
figure what the payments would be for different home loan amounts. Then,
you'll know what price range you can shop within, and whether or not you
can afford the payments. Remember, your income/debt ratio must fit
within the lender's guidelines to qualify for a conventional loan.
Healthy and "Not-so-healthy" Credit Scores If you have an excellent credit score, then your income/debt ratio along
with the investment capital you have available will be the main factors
in determining home loan availability. However, if there are flaws in
your credit history due to non-payment or repossession, you will be
limited in the type of home loan you can obtain. But don't lose heart.
Many homebuyers whose credit is "not-so-great" do qualify for non-prime
loans. Non-prime loans can be a bit higher-priced than prime loans or
have higher interest, but you might still be able to buy your dream
home!
Creative Financing Don't settle for conventional loans if you don't have to. There are many
creative ways to finance a new home loan. If you do not have the needed
investment capital or a down payment, some lenders will finance the down
payment for you as well as the closing costs. If not, the seller might
be willing to finance part of the loan to cover these costs. This can
work even if the seller doesn't have extra "money to lend!"
Explain to the seller that it could be advantageous to him because of
income taxes. He might much rather claim an income of $100,000 than
$120,000! Spreading out payments for $20,000 of the loan amount over a
period of five or ten years could make a huge difference on his taxes
due for that year. Consult with an accountant to find out if this could
work in your situation.
Unusual Types of Home Loans If you're worried about budgeting with a new home loan payment each
month, try a
FlexPay loan where several monthly payment options are
available to you every month. These options include interest only
payments, full-amortized payments, and minimum payments. There are also
bi-weekly mortgages for paying more toward your premium each year
through a bi-weekly payment schedule.
Hard Money loans are also available when there is a large amount of
equity built up in a home. The loan approval is based more on the home
or property's value than the borrower's credit history or job/salary
history.
Refinance Loans If you plan to refinance your home, there are several options. A
refinance means you are re-evaluating the terms, payments and interest
of your loan. You might refinance to simply get the interest rate or
payment lowered. Or, you might want to keep a little cash out for
yourself as well. This is called "Cash-out" refinancing. Cash-out loans
are made when you want to refinance your home for more than is owed on
it. For instance, you owe $60,000, but want to refinance for $80,000.
You'll pocket the additional $20,000 to use for home repairs, remodeling
or whatever else!
Reverse loans are available for those over 62 years of age who own their
home free and clear or have much equity built into it. They can receive
a monthly payment, a lump sum or a line of credit. This does not have to
be repaid until the borrower moves or passes away. Then, the estate can
be sold to pay the note.
Another option for leveraging your home equity is to create a HELOC
(home equity line of credit) that is secured by the equity in your home.
HELOCs can be used to pay debts, make purchases, or anything else. Be
aware, however, that the interest rate can fluctuate monthly.
Now that you are armed with many options for obtaining a home loan or
refinancing your mortgage, check with an online lender to find out what
plan will work best for you. Use the available tools and calculators to
do some budgeting on your own as well. You'll be moving in that new
dream home in no time!
About The Author
Chris Robertson is a published
author of Majon International. Majon International is one of the
worlds MOST popular internet marketing and internet advertising
companies on the web. Visit their main business resource web
site at:
http://www.majon.com
To learn more about subjects like home loan please visit the web
site at:
http://www.1Stepfunding.com
For more information and informative related articles and links
about this subject matter and content, please visit Majon's Real
Estate directory:
http://www.majon.com/directory/Real_Estate
Additional Real Estate
Foreclosure Information Resources
-
Sell Your House Fast
Tips on how to sell your house
fast- Real Estate buy and sell.
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Real
Estate Buying Tips
16 Real Estate Tips on How to Buy Real Estate Successfully
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Alger County Real Estate
Resources
-Munising
& Alger County Michigan Foreclosures
*
Alger, MI Foreclosures - foreclosure listings,
pre-foreclosure, bankruptcy homes, include HUD foreclosures VA
foreclosures government foreclosures and bank foreclosures
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For Sale by Owner Upper Peninsula Businesses, City of Munising residential
