Things that You Need to Know before Financing Your Home
Frequent Asking Questions:
What are Points? A. There are several types of mortgage related costs called "points" and their definitions and purposes vary. Generally, points are costs that must be paid to a lender in order to receive mortgage financing under specified terms. One point means 1% of the loan amount. 1% Disount point means, it will cost you 1% of the loan amount to buy the rate down by mostly .25% ( 1/4 of a rate ). 1 point origination fee means, it will cost you 1% of the loan amount by a lender or a broker to do the loan for you.
What does it mean to "lock" the interest rate? A. Due to interest rate movements, mortgage rates can change between the day you apply and the day you close. To protect against uncertainty, a lender can " lock-in " and gurantee you or 30, 60, 90, or 120 days. The longer the days are the higher the rate will be.
What is the lowest down payment I can use or a down payment on my home purchase? A. A 20% down payment used to be a standard, and most lenders today allow the buyer to put down as little as 5% down, or $5,000 on $100,000 loan. In fact, over 75% o the borrowers are now putting 0% down payment. If you put 20% down, then you will not pay PMI ( private mortgage insurance ) monthly to insure the loan for the lender. However, if you have a credit score below 620 and aquire a sub prime loan ( higher rate ), you will not pay PMI. PMI is only applied on prime loans ( prime rates ) with less than 20% down payment. The more down payment you put, the less will the monthly payment on the mortgage.
George Tesfa. Sr. Loan Officer
American Mortgage
http://www.Amerimort.com
http://www.CashMyEquity.com
Latest News
Ben Bernanke: Fresh Attack on Mortgage Rates U.S. News & World Report, DC - Lower rates will enable some borrowers to refinance out of adjustable and into fixed-rate loans. But those who need to refinance the most have homes with ... Long Bond Returns Most Since 1995 Amid ‘Bubble’ Talk (Update2) Treasury Yields Hit Record Lows, But Will it Last? REFILE-TREASURIES-Bonds rally, helped by weakening economy |
Looking to refinance? Now might be the time Boston Globe, United States - Mortgage rates have been stubbornly high for quite some time but the government's recently announced $800B plan to bolster mortgages and consumer loans had ... Are looking for a new mortgage? We want to hear from you |
Interest rate drop opens door to refinancing Austin American-Statesman, TX - By Shonda Novak, MS Taboada The recent sharp drop in mortgage interest rates is creating a window for homeowners nationwide to refinance and providing an ... |
Md. sees drop in loss of homes Baltimore Sun, United States - Many borrowers took on mortgages at the height of the housing boom, believing they could eventually refinance to a lower loan rate or sell their homes if ... |
 Straits Times | Mortgage rates fall, but many borrowers will have trouble qualifying Los Angeles Times, CA - Jeff Lazerson, a Laguna Niguel mortgage broker, said all the customer calls he received Tuesday were from people seeking to refinance, not buy homes. ... Mortgage-market revival: Try, try again US move cuts mortgages to lowest rate since February Last Call for Smart Homeowners |
Self-Employed Are Frozen Out of Mortgages Wall Street Journal - He's been unable to find a lender willing to refinance the $900000 adjustable-rate mortgage on his primary residence, which he says is worth around $1.1 ... |
Mortgage Delinquencies Set to Soar: Report Housing Wire - “The credit ding makes refinancing that much more difficult,” said one source that spoke with HW Tuesday morning, a loss mitigation counselor at a large ... |
New mortgage crisis looming, experts caution San Bernardino Sun, CA - And since investors no longer want to buy commercial mortgages, banks are reluctant to write new loans to refinance those facing foreclosure. ... |
A recession Q&A Newsday, NY - ... take measures that will result in lower mortgage rates, "so people can afford to buy up housing inventory and refinance mortgages at affordable rates. ... |
Are You An Idiot To Keep Paying Your Mortgage? NewsNet5.com, OH - If you took out a home-equity loan or did a cash-out refinance to buy a car, you'll still owe tax on that debt if it is canceled. For state income taxes, ... Some buyers may see higher loan rates Global slowdown to drive market direction |
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