Home ownership is at an all time high for the following reasons in America:
Credit - Paying a mortgage every month and on time to upgrade one�s credit.
Investment - Real estate is an excellent investment. Home values are
constantly appreciating.
Fulfillment - The enjoyment of owning your first home!
Tax Advantage - The interest on your home is absolutely tax deductible!
Credit Reports:
The following are the top three major reporting Agencies:
1. Equifax 1-800-685-1111 or www.equifax.com
2. Experian 1-800-682-7654 or www.experian.com
3. Transunion 1-800-916-8800 or www.transunion.com
When choosing a loan ask yourself these questions:
Is there a down payment required?
What is the interest rate and the annual percentage rate (APR)?
What are the closing costs? (the lender may charge additional fees)?
Could your mortgage be resold on the secondary market?
Types of Loans:
Assumable Mortgage -
Is a loan that remains with the property. The advantages of this loan includes no points, no changes in the interest rate and low closing costs.
Blanket Mortgages -
Is a mortgage used for more then one parcel or lot, such as a subdivision development.
Bridge Loan-
Is a loan where by the seller needs the equity in the present home in order to purchase the new home.
This loan is temporary until the permanent loan is put in place.
Conventional Mortgages -
Is a mortgage that offers a fixed rate in either 10, 15 or 30 year loans.
The down payment used to be 20% required, but most buyers today only put 10% down.
But with less down you have to carry (PMI) private mortgage insurance.
First time buyers have lower down payments, such as 3-10% down.
FHA Insured Loans -
Is a loan through the Federal Housing Administration which is run by the Housing and Urban Development (HUD). These loans are for low to moderate income families and with a down payment of only 3%.
It does not lend money but insures mortgage loans by approved lending institutions.
Open-End Mortgages -
Is a mortgage where by a borrower obtains additional funds to improve their property.
It may be paid in full at anytime with no penalty.
Package Loans -
This loan is not only for real estate, but includes appliances and furniture for condominiums.
Reverse Mortgage -
This mortgage allows a senior with a fixed income to live in his or her home by tapping into the equity in their home.
VA-Guaranteed Loans -
It is a loan made to a veteran by a lender and guaranteed by the Department of Veterans Affairs.
This loan requires no down payment.
Wraparound Mortgages -
Is a mortgage used to finance or refinance apurchase where an existing mortgage is retained.
