Mortgage loan

When the borrower gets his mortgage from a bank or other lending institution in order to finance his or her house purchase, this transaction is considered to belong to the Primary Market. At this point, the lender has a choice of either servicing the loan for the time equivalent to that loan duration (5, 10, 15, 20, 30 years or any other such term) or sell it to someone else. Some lenders decide that they want a steady and secured income coming from systematic, monthly payments from the…

Home Buyers Guide to Obtaining a Mortgage Congratulations on deciding to purchase your first home! The home buying process is an exciting one and you most likely want to jump right in to searching for your perfect house. While it doesn’t hurt to look, there are some important financial considerations you need to make before landing on the house of your dreams. Chances are, if you are like the majority of people, you will need to obtain a mortgage in order to buy a house. Going through the…

Currently, the two most common mortgages are conventional and FHA. FHA is nothing more than a big insurance program for lenders. FHA is not lending you any money, they are just insuring the lender that you are obtaining your loan through against default. When choosing between an FHA and conventional mortgage you must ask yourself a few questions.... Is my credit good? Even though the minimum credit score requirement on a conventional mortgage is 620, there are extra fees charged to you if your…

have optimized SIMP to reduce principal at approximately the same pace as the 15 year show them please refer to column X . 15 year mortgage reduces the principal balance of a loan by 10 % in just over 2 years, now lets take a look at SIMP please go to column K as you can see it takes SIMP a few months more. There is one major caveat of the 15 mortgage I would like to go over , please refer to cell B10 as you can see SIMP monthly payment is $161 less than the 15 year, thus SIMP…

regulations to protect investors. Suddenly, the mortgage lenders and their bankers had much stricter accountability for the loans they issued. Consequences to the lenders and the bankers varied from fines to serving time in prison. In response to this, the mortgage Lenders began tightened lending guidelines. Simply put by my sister: “A client who I could have issued a $500,000 mortgage loan to only one year prior I could only approve for a $200,000 loan today.” Conclusion If we do not learn…

FHA 203(k) Loans Come as Two Types with Their Own Features The FHA 203(k) loan program solves a difficult problem for first-time home buyers who need a mortgage and a home renovation loan. When buying a home that needs repairs, banks will not grant a mortgage until repairs are complete. But, until you own the home, repairs cannot be made. The FHA 203(k) program is a loan for home renovation combined with an FHA-insured mortgage. This means you make one application and pay one monthly payment. As…

ADJUSTABLE RATE MORTGAGE ARM or Adjustable Rate Mortgage means that the interest rate of your mortgage loan fluctuates; meaning it can go up or go down, depending upon the market condition. The ARM is made up of two parts. The first is the INDEX or that part of the interest rate that is forever changing as affected by inflation and different market factors and is not constant. This is often referred to as the benchmark interest rate. The other is the MARGIN (or a ‘spread’) which is the…

precautions and measures to ensure that another housing disaster does not occur. In the 1980s, we were faced with what was called the Savings and Loan Crisis. According to Kenneth J. Robinson, author of his article, Savings and Loan Crisis, “In the 1980s, the financial sector suffered through a period of distress that was focused on the nation’s savings and loan industry.” As the inflation and interest rates rose in the late 1970s, many S&Ls began to experience huge losses. Even though the…

One of the main differences is how much it costs to put a down payment on a property. When buying a home you have to put a down payment that is generally pretty large. There are also mortgage fees that you have to pay for when buying a house. When you are renting a home the payment right away is usually first and last month’s payment and an additional security deposit. If you do not damage anything you can get the security deposit you…

Not that there is a guarantee that someone will contact you to make an offer, but with the current market being a sellers’ market we are starting to see more “For sale by owner” and Zillow Make Me Move offers. I’m not a Realtor; I’m a licensed mortgage professional who has helped families finance their homes here in Kitsap County for over 14 years. The reason I’m contacting you is simply to offer a free pre-approval, so in the event you do receive an offer you will be well-informed and ready…