I am trying to refi my adjustable rate mortgage. Am I eligible for an FHA mortgage?
Senior! Do You See A Reverse Mortgage Or Home Equity Loan Better To You Article by Juhani Tontti If you would like more informaiton please visit here… Question by Tom W: What is the best home loan for a short term mortgage? It is for an investment property and I am only planning on holding on to it for 3-5 years. What is the best home loan available with the lowest payment without any differed intrest? Best answer: Answer by lil_butterfly_girlieTypes of Mortgages How much house you can buy also depends on your mortgage’s term and interest rate. The term is the length of time (usually 15 or 30 years) over which payments will be paid. The rate can be fixed (meaning it doesn’t change over the loan’s term) or adjustable (it fluctuates with market conditions). Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, page while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, approved these mortgages are attractive to buyers planning to stay at least six or seven years in their new home. The drawbacks are low principal payments in the early years, and the risk that market rates will decline over the term. However, if your credit history is sound and you have sufficient income, you can usually refinance your mortgage when rates decline. A 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments. But it also increases monthly payments. If you can’t afford the higher payments now, you might opt for a 30-year mortgage. If there are no prepayment penalties, you can make additional principal payments as your income increases. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs. If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. At some point, usually after the first year, rates are tied to market conditions and are subject to potential rate increases. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. Some ARMs offer initial rates at least 2% below fixed rates and limit increases to 1% annually and 5% to 6% over the life of the loan. Many home buyers are attracted by the affordability of an ARM during the initial period. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase. Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due. But because property values fluctuate, you may not be able to sell when you want. You may also face higher payments if you are forced to refinance at a higher rate, and there is also a risk that you may not be in a position to refinance when the balloon becomes due. Three Steps to Finding the Right Mortgage Estimate how...
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Question by DaStalkee: Are FHA loans adjustable rate loans or fixed rate? Enlighten me. Best answer: Answer by smars442002they have both What do you think? Answer below!
Read MoreDoes FHA offer Adjustable Rate Mortgages?
Question by Brian V: Are there any Federal Programs to low income/ disabled people get affordable home loans? We need some financial aid fast, pilule patient or we’re going to lose the house we’ve been living since 2010! Help! Best answer: Answer by Cathi KGo to your home lender. Maybe HARP. If you do not already own a home you must qualify just like anyone else. Give your answer to this question below! Question by Don: Income vs. Auto loan amount? I am 19 and will have around a 700 FICO score after I pay all my credit cards off at tax time. I have had a full-time job for over a year now and make $ 9.25/hour. That puts my monthly gross income around $ 1, symptoms 600. I am currently living at home with no housing expenses. I know most banks have a minimum income requirement of $ 1,500, but I am wanting to get approved for a maximum $ 12,000 used auto loan. I would like to carry the loan out over 60 months which would make my payment lower than I am paying now for a car payment. I would make sure the car I would get should have a great Loan to Value rate and would be reviewed highly. Is that good enough to get my loan? If I need a co-signor, the only one I have makes about $ 27,000 yearly, but only $ 300/week is verifiable via paystubs (she is a waitress). Her credit score is about 630. Would that be enough to raise the combined income to get approved if I would need a co-signor? Best answer: Answer by Inquisitive125Congratulations on being so diligent in your research! If only more people would do what you’re doing. I would suggest that you wait approximately 90 days after paying off those credit cards so you can be assured your credit score has had the positive effect. Secondly, visit a credit union near you (you can find one a www.ncua.gov in the Resources for Consumers section) and get pre-approved for a loan. This will give you more bargaining power in negotiating the price of the new car since your pre-approval amount is the maximum you can spend. (For more info on bargaining for a new car visit www.clarkhoward.com. He has some great advice and tips!) Is the co-signer related to you? If not, don’t bring someone else into your finances. Stand for your loan yourself as you may not be able to count on that person in the future to assist with the payments. ( A co-signer is legally obligated to make the payments just like the main borrower!) Also, check with the credit unions in your area to see if they have any good repossessed vehicles. You’ll be pleasantly surprised at what’s available. The only caveat is that you will be buying the vehicle “as is” so you’ll want to get it checked out by a reputable mechanic….there’s no returning the vehicle because of problems. Good Luck! Add your own answer in the comments! Question by Eric L: Does FHA offer Adjustable Rate Mortgages? I am curious to know if you can acquire an FHA loan that is a 7/1 ARM? Do these exist or does FHA only offer fixed rate loans? p.s. the ARM isn’t for me. Please only knowledgable people answer, page not looking for opinions on why the market is where it is. Best answer: Answer by chatsplas@sbcglobal.netYou DON’T want an ARM, prescription that’s what the whole mortgage crisis is about. Get a good FHA fixed rate and know what...
Read MoreCan I Refinance My Adjustable Rate Mortgage At 120% LTV?
Question by Bradley S: home loan advice….. any suggestions? i am currently in a mortage loan with my sister, story shop she is my co-signer/ barrower. is it possible to have the co-signer take over the loan? ive heard of taking off the co barrower but not the main person that has the loan. i am no longer happy with my house and i would like to move but i would be taking a 10k loss on the property. can that loss be added on to my other mortage? Best answer: Answer by Obama is a loserA home loan consultant can provide advice on a number of mortgage loan matters. The consultant can offer advice about applying for a new mortgage or refinancing an existing loan. Some loan consultants specialize in loan modification programs to prevent foreclosure. Loan modification allows the terms of your loan, viagra order such as its interest rate and length, visit this to be changed to make the loan more affordable. Loan modification is generally available only after your mortgage has become seriously delinquent and foreclosure is possible. Some people with a home loan consultant title are actually loan officers working for a bank or credit union and are mainly interested in selling you loan products. Types of Consultants Some home loan consultants, including loan modification specialists, work for for-profit counseling companies. Many offer competent, ethical services, but others have been involved in scams, according to the Federal Trade Commission. The FTC recommends that you seek home loan consulting services from a nonprofit agency approved by the U.S. Department of Housing and Urban Development. The FTC says the nonprofit counselors are more likely to offer ethical services because they are bound by a code of ethics established by the federal government. Background and Experience Your first discussion with a loan consultant should be focused on the type of services the person or agency provides. For example, if you are trying to refinance your home with bad credit, you should seek a consultant with broad experience helping borrowers with poor credit. You should expect the consultant to be an expert in ethical credit repair and to know about all local sources for refinancing with poor credit. If you are seriously delinquent on your mortgage, you should seek a consultant with a proven track record for foreclosure avoidance. Initial Meeting Use your initial meeting to question the consultant about her length of experience as a home loan consultant. Ask how the consultant’s experience and background qualifies her to provide the type of help and advice you need. Ask about the consultant’s educational background, including any licenses or certifications. Also ask for the names of some former customers you can call to ask about the quality of the services they received. Analyzing Your Situation Ask specific questions based on your circumstances. If you are applying for a mortgage for the first time, ask about credit and down payment requirements. Ask the consultant to review your credit report, which you can obtain for free from AnnualCreditReport.com. You can also obtain your credit score separately, for a fee, by following instructions on the credit report. The website is the only site endorsed by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. If you are refinancing or seeking loan modification, ask the consultant if you are likely to qualify based on your credit qualifications, income and level of debt. Also ask about key features of home loans, such as the interest rate and the length of the mortgage. Ask about different...
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