Borrowing Advice | BorrowingAdvice.com » Mortgage

How Does A Mortgage Rate Lock-In Work?

walter — Tue, 31 Jan 2012 15:16:22 +0000

There are many different steps to getting a mortgage. Even after you find a lender you feel comfortable working with, you’ll have to decide what type of mortgage product best fits your needs. The two most important aspects of your mortgage will be the term of your loan and its interest rate. But interest rates on home mortgage products are always changing, and it can sometimes take several months or more from the time when you find the home and when you actually close on the transaction. Many borrowers find this degree of uncertainty to be unsatisfactory. If the rates...

Understanding Amortization and How Mortgages are Paid Down

walter — Thu, 12 Jan 2012 15:21:05 +0000

The process of buying a house or a condominium is different than buying just about anything else. It’s possible to save up and pay cash for new home appliances, a new car or just about anything else, but it’s usually not possible to buy a home with cash. Instead, home buyers generally need to take out a mortgage. Unfortunately, the process by which a home mortgage gets paid down may not be entirely clear to first-time buyers (or even to those who have purchased a home before). While there are a variety of home mortgage types, a common element of...

Advice on How to Get a Jumbo Mortgage

walter — Thu, 05 Jan 2012 15:02:23 +0000

There’s a good chance that you probably already know a little bit about the process of obtaining a mortgage loan to purchase a home. Perhaps you’ve even gone through it a few times yourself, so you know about what to expect with regard to down payments, fees and other closing costs. But so-called “jumbo” mortgages are somewhat different. Jumbo mortgages are mortgages that exceed the maximum value set by Fannie Mae and Freddie Mac for so-called “conforming” loans. For homes in most parts of the United States, the current threshold is $417,000, although the number is higher in more...

Shopping for a Mortgage

walter — Sat, 21 May 2011 16:19:52 +0000

Owning a home is a goal that many of us share. But it’s not as simple as choosing a house and laying down the money. Unless you have plenty of money saved up, you’ll have to get a mortgage first. Many prospective homeowners will qualify for a mortgage. But comparatively few get the best possible deal on one. Most simply go to the nearest lender, fill out an application, and proceed with whatever kind of deal they’re offered. But if you shop around, you’ll find that different lenders offer vastly different terms that could make a huge difference in how...

Should You Downsize Your Mortgage?

walter — Mon, 09 May 2011 14:23:51 +0000

When interest rates drop, homeowners tend to flock to mortgage lenders hoping to refinance. In good economic times, they are usually looking to not only take advantage of lower interest rates, but tap into their home equity for some extra cash. But in the face of dropping home prices, many are simply hoping to lower their monthly payments or pay down their mortgages more quickly. Sometimes refinancing is a good idea. But surprisingly, getting that lower interest rate can sometimes cost you more than staying with your current mortgage. Here is advice on some things to consider before you refinance...

Mortgage Basics

admin — Fri, 27 Mar 2009 15:42:58 +0000

With mortgage rates dropping these days due to the variety of stimulus programs you need to know about the different types of mortgages that are available. Here is a quick summary of mortgage types. 1. Fixed rate mortgage - This is a mortgage where monthly payments remain the same throughout the entire term of the loan. Note that there are many types of fixed rate mortgages: ten year, fifteen year and thirty year. Generally the longer term that the mortgage is i.e. thirty years, the lower the monthly payment will be. Fifteen year mortgages, on the other hand, help...

Watch Out for Reverse Mortgages

admin — Thu, 12 Feb 2009 21:35:57 +0000

With the recession in full swing and unemployment rising, unscrupulous predatory lenders are taking advantage of seniors. One of the areas in which they are particularly insidious is selling reverse mortgages. There are a host of reverse mortgage scams that are plaguing our senior citizens and steps are being taken to stop it. According to HUD, deceptive practices and allegations of high-pressure sales tactics are being directed at senior citizens under the guise of a helpful and legitimate reverse mortgage. Borrowers also run the risk of being steered into inappropriate loans and annuities by sales agents and...