For many people, a home is their largest investment – and potential source of capital. Getting a second mortgage, or a home equity loan, can tap that equity for college, home improvements or other pressing financial needs. Steps: 1. Determine why you need or want a second mortgage. The level Read more…
Buying a home for zero down can be accomplished, but may cost you more in the long run with all the additional fees and costs associated with this sort of loan. Steps: 1. Ask lenders about any zero-down programs they have. Look in the yellow pages under “Banks,” “Savings and Read more…
Before you look for that dream house, you need to ask yourself what you can really afford to spend each month. These calculations are based on a typical down payment of 20 percent. Steps: 1. Collect some home guides or look at a few ads in the Sunday newspaper for Read more…
Refinancing is the process of replacing an existing mortgage with a new one. You might consider refinancing to: Cut costs: If interest rates have fallen significantly since you got your loan, refinancing may decrease your monthly payment and reduce the interest you pay over the term of the loan. Change the type Read more…
The process of applying for and getting a conventional mortgage loan usually takes just a few weeks. Government loans, and conventional loans issued to borrowers with serious credit problems, can take up to a few months to process. Once you’ve chosen a lender to work with, the process should include Read more…
A mortgage lender is a bank or other financial institution that issues mortgages. Traditionally, home buyers looked for a lender after they had found a house to buy. These days, real estate agents typically encourage home buyers to work with a lender before looking at properties. There are two good Read more…
Once you’ve determined how big a mortgage you can afford, your next steps (unless you’ve qualified for a government loan or another special situation) should be to choose your: Type of mortgage: Fixed-rate or adjustable-rate Term of mortgage: 15 or 30 years Fixed-Rate vs. Adjustable-Rate Mortgages The most important factor in your Read more…
Before you even begin shopping for a home or a mortgage, first you need to review your financial situation by assessing factors such as the amount of money that you make, spend, and owe each month. To do a complete assessment: Review your personal financial situation. Determine how large of Read more…
An adjustable-rate mortgage (ARM) has an interest rate that can change at certain points throughout the term of the loan. Most ARMs offer a fixed rate for a certain period of time (3, 5, 7, or 10 years), after which the rate adjusts to match current interest rates. Whenever the Read more…
Interest rates rise and fall over time. A fixed-rate mortgage protects you from such fluctuations by locking you into a permanent interest rate when you take on the mortgage. The following table shows the main advantages and disadvantages of fixed-rate mortgages. Advantages Disadvantages Stability: The interest rate and monthly loan payments Read more…