Search Articles
Subscribe To Our Site
Related Mortgage Articles:
Understanding the process of re-financing can be quite dizzying. Homeowners who are considering re-financing might initially be overwhelmed by the number of options available to them. However, after taking some time to educate themselves about the process, they will likely find the process is not nearly as daunting as they had imagined. This article will discuss some of the options available to those interested in re-financing as well as some of the important factors to consider in order to determine whether or not refinancing is worthwhile.
Buying a Home when Rates go Up
Many people fret the rising tide of interest rates. You'll hear things like, "Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. "
Self Employed Mortgage Loan - Getting a Mortgage When You're Self Employed
Being self employed has many benefits. When you are self-employed, you can write off all of your deductions on your taxes. You have the potential to make more income than someone who is employed by someone else. You have the freedom to be your own boss. One of the few times when being self employed has some drawbacks is when you go to get financing for a home or a major purchase. But, here are some things to know that can help you make the mortgage loan process run smoothly when you are self employed.
Mortgage Refinancing Article:
Buying a Home? Dont Get Saddled with Two Mortgage Payments
I have a lot of friends and family who are currently buying houses. Many of them have had a problem with timing. In other words, they buy a house and sign a contract that says that they have to pay the seller in 30 days. (Incidentally, it's never wise to go less than 45 days.) Now, it takes two to three weeks to sell their house, and they sign a 30-45 day contract, so they don't get their money in time to help finance the down payment for the house they are buying. The answer to this problem is simple. Get a bridge loan.
Now, in order to make this strategy work, you need a considerable amount of equity in your current home. Let's say, for example, you are selling a $200,000 home, and you owe $110,000. You have $90,000 in equity (200,000 value minus your debt of 110,000). A bridge loan uses the equity in your home to "bridge" the gap between the sale of your home and the purchase of your new home.
Here's how it works. A bank will loan you 80 percent of the value of your current home, or $160,000 in our example (200k times 80% is 160,000). $110,000 will go toward paying off your current lender, the one you owe $110,000. The remaining $50,000 is yours to use for down payment money on your new purchase and moving expenses, or for any reason you like. The beauty of these loans is that they are treated like home equity lines by the lender. In other words, you pay interest-only on the loan (probably 4-6 percent). So, if you had to pay 4 percent, interest-only on a $160,000 bridge loan, your payment would be $533.00 per month.
Wait one more minute, though. Another thing about bridge loans that makes them a truly marvelous tool is that your payments are deferred for up to 90 days. Imagine getting $160,000 from a lender to help you pay off a mortgage, put money down on a new house, and have left over expense money, and you don't make a single payment for three months. Wow, this is true power! So, in the long run, you may wind up never making a payment on your bridge loan. Outside of some small fees to get it, you are basically getting free money, because you will sell your house for $200,000 and pay off your bridge loan.
Meanwhile, you now have just your new first mortgage on your beautiful new home.
Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about this suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com
Related Sensible Mortgage News and Articles From adzines
Your equity is the amount your home is worth, on the market, minus the amount you owe to your mortgage broker. For example, if your property is worth $200,000 and the balance you owe your mortgage broker is $100,000, then your home equity - the part of your property that you own free and clear - is $100,000.
Whether you need some extra cash to pay off some credit card debts, or to make some home improvements, home equity lines of credit or second mortgages can be great ways to get started.
Do you want a mortgage loan for your new home? Trying to qualify for a new mortgage can be very tough, especially if you aren't aware of the effect your credit report score has on your ability to get approved for loans. One of the first things a lender looks at to determine your suitability for a mortgage loan is your credit report, or FICO score.
Applying online for a mortgage is very fast and easy. Just make sure of a few things before you start to look for places to apply to. Here are some tips to keep in mind when searching for a mortgage company to help you online:
You've been looking at houses for months, and finally you've found it--the house that's just right. So now, all you have to do is to purchase your new home, move in, and get settled, right? Not quite. There's one more big step to go-getting a mortgage loan. You're going to want to decide on the type of mortgage and payment terms that fit within your budget. And you're going to have to prepare yourself by doing some research. What follows is valuable information that will be crucial in helping you make loan decisions that will fit your budget and circumstance.