The cost of homes makes it almost impossible to pay cash when purchasing the place you will live. Fortunately, there are a number of loan programs available to help you finance your house.
The tips in this section can help you dig through the different loan options so that you get the one that is best for you. Construction loans, closing costs, points, and equity are only a few of the terms that can cause some confusion. You'll learn what these mean along with other helpful tips that will keep you moving toward owning your own home.
Tips, Tricks, and Answers
The following articles are available for the 'Mortgages' topic. Click the article''s title (shown in bold) to see the associated article.
Avoiding Mortgage Fraud
Mortgage fraud is one of those types of swindles that you don't always think about or catch, but one you most definitely need to be aware of. If you simply verify the facts yourself and go in with a wary eye then you should be in good shape when it comes to selling or purchasing a home.
Building Home Equity
While you may know that high home equity is a good thing, you may not know how to go about building that high equity. The methods of doing so are actually pretty simple and if you can keep in the mind the cardinal rule of equity then you'll have no problem increasing that equity.
Buying a Home with Bad Credit
Bad credit can affect so much of how you conduct your affairs in life that you need to be careful with what you agree to because you don't want to make things worse for yourself. Buying a home is a significant step and one that should be heavily considered if you want to go ahead and purchase a home while having not-so-good credit.
Financing a Home
When you take out a mortgage it's always a bit exciting because that means you're closer to finally owning your home. However you need to enter into these agreements with caution and make sure you know exactly what's going on when you sign on the dotted line. The more you know, the more in control you'll be of your money and your mortgage.
Finding a Mortgage Lender
Mortgages are complicated and often hard to fully understand. One of the keys to a good mortgage however is in choosing the right mortgage lender. Like with the actual loan, you need to do your homework on the lender and make sure that what you're signing is really what's best for you. The decision is yours!
Getting a Construction Loan
Whenever you decide to dive into that crazy pool of custom home building, you'll need to take out a special loan so you can actually create what you want. There are only a few things you need to remember to get you started on getting your own construction loan and then you'll be well on your way toward making that dream a reality!
Buying a home is a big deal and you want to go about it in the right way. If you can prequalify for a loan, then you have much more assurance when going into the house hunting process. Even though it's not a guarantee you can begin finding that dream home with a better idea of what you can afford and what kind of mortgage you'll be able to sign.
Home Equity Loans
Home equity loans can be beneficial for you home and your financial situation but they are also pretty risky. If you're considering a home equity loan, then know the risks and know what's out there for your options.
Lowering Your Mortgage Rate
There are several reasons to lower your mortgage rate. Before signing on the dotted line, be sure that the fees justify the benefit.
Picking a Mortgage Term
Picking a mortgage term is only one of the things you'll have to do when taking out a home loan, but fortunately it's one of the easier things you'll have to do. If you just know what the major differences are between long and short term mortgages then you can easily make the choice that's right for you.
Reading an Amortization Schedule
Amortization schedules may be daunting to think about, especially when you realize it deals with mortgages and interest and concepts of the like. Amortization schedules however aren't that hard to figure out and once you do you'll be in good shape for really managing your loan.
Reducing Your Mortgage
Reducing your mortgage may seem difficult, but if you know the right ways to go about it, then you can meet with pleasing success. A mortgage is a big deal and you want it to work best with your finances and you want it to work out. Sometimes reducing your payment or term is the best way to ensure a degree of financial security and it's not that difficult.
Refinancing Your Mortgage
Whether you are looking to refinance to move from an adjustable rate mortgage to a fixed rate, or are trying to reduce the interest rate on your mortgage, you should be sure to research the loans being offered and avoid high fees that often accompany a refinance.
Should You Refinance?
The rightness or wrongness of refinancing depends a lot on your specific situation. Here are two factors you can use to decide if refinancing is right for you.
Types of Home Loans
If you or someone you know is getting ready to buy a home, don't miss this tip! It lays out the most common types of home loan and tells you what to look out for with each.
Understanding Closing Costs
Unfortunately there is more to buying a house than just paying the list price. You need to factor in closing costs and before you can do that you really need to understand what they are and how to pay for them.
Since when has a mortgage had anything in common with basketball, football, or hockey? Why do mortgage lenders keep talking about points, and do you really want them?
Understanding Reverse Mortgages
Reverse: the opposite of usual. Mortgage: paying for a big loan a little bit at a time. Hmm . . .
What about Interest-Only Loan Options?
What are they, and are they good for you? Brace yourself; you're about to find out.
What Are Subprime Mortgages?
A subprime mortgage is the type of mortgage given to borrowers with credit scores below 620. You can avoid the high fees and interest rates associated with subprime mortgages by knowing your credit score and making improvements in your debt payment record. First, research your credit score. If your credit score is below 620, take your time and research several lenders to get the best offer. With subprime mortgages, the terms and conditions can differ widely because lenders use different methods to measure risk.
What Determines My Home Loan Rate?
Your interest rate is one of the things regarding your mortgage that can be a little vague and hard to figure out. However if you have some idea of what goes into determining your home loan rate, it will be easier to get an idea of what to expect to pay in interest on your mortgage.
What is a Mortgage Broker?
A Mortgage Broker sells mortgage loans on behalf of businesses or individuals. They work as the middleman between the borrower and the lender. They often have excellent connections within the mortgage industry and are able to secure the best deal on a home loan.
When is the Right Time to Refinance Your Mortgage?
There comes a time in just about everyone's adult life when they have to take stock and seriously look at their financial situation. As a result, many people will at the very least consider the option of refinancing their home loans. But when is the right time to refinance your mortgage? The answer may just surprise you.