by: Dan Lewis
In the past, homebuyers more or less had limited mortgage loan options. These days, there are more options than you can shake a stick at, but here?s a primer on the basics.
Mortgage Loans
With the real estate market explosion over the last 10 years, a call has gone out for unique mortgage loan programs. Bankers have been more than happy to answer the call. For many borrowers, traditional mortgage loans still fit the bill. Here?s an introduction.
1. Conforming Loans ? The loans comply with requirements set down by Fannie Mae and Freddie Mac, two government sponsored entities that buy and sell loans from mortgage lenders. These entities put strict caps on the loans they will buy, with single-family homes having a mortgage cap in the range of $360,000. With the booming real estate market, many areas such as San Diego do not come close to fitting into the conforming loan market since homes average in the $600,000 range.
2. Non-Conforming Loans ? Known as ?Jumbo Loans?, these mortgages are written for loans that exceed the $360,000 cap mentioned previously. They tend to have slightly higher interest rates, but are readily available.
3. Bad Credit Loans ? In the mortgage industry, mortgage brokers often refer to a borrower?s ?paper.? This paper refers to people with less than stellar credit. ?B? paper refers to relatively small problems, while ?D? paper refers to bigger issues such as bankruptcy filings. The worse your paper, the more you can expect to pay in interest, points and down payment amounts. You need to carefully determine whether paying these extra penalties makes financial sense.
Interest Rates
With each of the above loans, you?ll have an option of going with a fixed interest rate or an adjustable rate. Fixed interest rates simply set a definitive interest rate that will be charged over the length of the loan. Adjustable rates typically start at a figure lower than fixed rates, but can be moved up to reflect changes in the cost of borrowing money. In many ways, you are betting whether interest rates will increase in the future.
For a great majority of people, basic mortgage loan options still suffice when it comes to borrowing money. Don?t fret if you have problems qualifying for these loans. There are many other options on the market these days.
About The Author
Dan Lewis is a mortgage broker with http://www.gwhomeloans.com - San Diego mortgage brokers providing home loans and refinances. Visit http://www.gwhomeloans.com/services.html to learn more about options for San Diego mortgages.
|
The Advantages of Reverse Mortgages
The Advantages of Reverse Mortgages
by: Charles Kirkendall
In recent years property values have soared, while investment returns have been modest.
This has created a situation where a lot of seniors are finding themselves in the position of being house rich and cash poor.
These cash strapped seniors are looking for ways to increase their retirement income while continuing to live in their homes.
These retirees find that their options are limited, and in most cases require them to risk their home.
Enter the reverse mortgage, which can provide many advantages over these other less desirable options.
No Payments With Reverse Mortgages
The biggest advantage of a reverse mortgages is not having to make payments as long as you continue living in your home.
In fact, this is the number one reason that seniors choose to borrow reverse mortgages.
Almost 80% of reverse mortgage borrowers use a...
Mortgages > The Advantages of Reverse Mortgages
Tips For Travellers To The Tropics
Tips For Travellers To The Tropics
by: T. O' Donnell
I went on my first holiday to the tropics recently. I was afraid of catching a disease, so I did a bit of research, and took some precautions. Here are some tips I found useful.
1. Get your shots.
I spent a short time in areas relatively free of mosquito-borne disease. The key word is 'relatively'. A two week holiday in an urban area is probably alright. If you're staying for months, or in an area flagged as dangerous, get your shots well in advance. Don't leave it until the last minute, as by then it'll be too late! The drugs need some time to 'kick in', and your doctor may have to order them in advance.
2. Get an insect repellent.
I made one for mosquitoes by mixing citronella with olive oil. Citronella is an essential oil (an essence). I rubbed the mixture on all exposed areas morning and night, and after washing. Seemed to do the trick. I put too much oil in, I think,...
Tips For Travellers To The Tropics
Mortgages > Tips For Travellers To The Tropics
The UK Housing Market Is Set To Bloom In 2006
The UK Housing Market Is Set To Bloom In 2006
by: Michael Hanna
Broker?s have predicted that the housing market is set to bloom in 2006.
After house prices dropping for 16 months in a row BBC news has reported that house prices are set to rise again in 2006, although gains will be small.
Nationwide is said to be ?cautiously optimistic? for 2006, after such a bad 2005, and say ?Our expectation is that house price growth will remain firmly in low single digits in 2006 as the economy recovers"
With house prices set to rise, how can you insure that you know how much you should pay, and how much is just over the top?
The guardian this month printed a report (http://money.guardian.co.uk/property/story/0,,1669126,00.html) telling how many people were losing out by paying too much money for newly built property that they had purchased as an investment.
It...
The UK Housing Market Is Set To Bloom In 2006
Mortgages > The UK Housing Market Is Set To Bloom In 2006
Subprime Mortgages ? Information
Subprime Mortgages ? Information
by: Dan Lewis
Undoubtedly, you?ve heard the radio commercial claiming you can get a mortgage despite having bad credit. Bad credit mortgages are better known as subprime mortgages.
Subprime
?Subprime? is a euphemism for a borrower who simply doesn?t qualify for a traditional home mortgage.
Subprime loans used to be very difficult to get, but things changed in the 1990?s. Banks began to realize there were a lot of borrowers with less than stellar credit or other problems. More borrowers meant more revenues, so banks started creating subprime mortgages and the game was on. As a result of these new loans, home ownership in the United States has risen to all time highs.
One of the biggest determinants in qualifying for a loan is your credit score. A borrower?s credit history is analyzed using a ?FICO? score, named after Fair Isaac and Company, Inc. Generally, a FICO score below 620 is considered...
Subprime Mortgages ? Information
Mortgages > Subprime Mortgages ? Information
puppy training Types of Mortgage Loans ? The Basics Mortgages
Types of Mortgage Loans ? The Basics Mortgages skirts
Prom And Homecoming Dresses For The 2006 Season
Prom And Homecoming Dresses For The 2006 Season
by: Lynn Donn
Now is the time to start searching for prom and homecoming dresses for 2006. It?s nice to allow yourself plenty of time, so you can relax and enjoy checking out all those gorgeous dresses before you decide which one is going to be absolutely perfect.
Before you begin searching for your prom or homecoming dress, you should have a clear idea in your mind of whether you?re looking for a full formal,...
Prom And Homecoming Dresses For The 2006 Season Types of Mortgage Loans ? The Basics Mortgages skirt
Mortgages > Prom And Homecoming Dresses For The 2006 Season
spyware Types of Mortgage Loans ? The Basics Mortgages
Romantic Weekend Getaways
Romantic Weekend Getaways
by: Steve Gillman
Romantic weekend getaways can be a second honeymoon or your first vacation together. When you don't have the time or money for a long trip, try one of the following.
Luxuriate Together
Spending time at a nice hotel is the most obvious and common romantic weekend getaway, and with good reason. It is wonderful to be waited on and relax in a hot tub together. The best hotels for this will have a pool, a hot...
Romantic Weekend Getaways Types of Mortgage Loans ? The Basics hotels
Mortgages > Romantic Weekend Getaways
Master Bedroom Organization
Master Bedroom Organization
by: Hana Lee
In a perfect world your master bedroom should be a haven in which you and your spouse can retreat from the world and enjoy each other. Unfortunately, the same type of clutter and dust that invades every other room in your house can spill over into your master bedroom.
One of the easiest ways to spiffy up your master bedroom on a daily basis is make the bed. It's a simple as that. If you aren't someone who routinely...
Master Bedroom Organization Types of Mortgage Loans ? The Basics Mortgages
Mortgages > Master Bedroom Organization