Can I Find a Mortgage with Zero Down?

The simple answer is yes. You can find mortgages with zero down, but it isn’t quite that black and white. Not everyone can obtain such a mortgage, and it might not be as good a deal as it seems to be. First, you generally must have very good credit and a stable, fairly high income to be considered for a zero down loan. Yet, even with good credit, you will likely end up paying a higher interest rate, often associated with people who have poor credit scores. The reason for this is that the loan will be considered a high … Continue reading →

Huge Mortgage Mistakes

One of the biggest mistakes made when it comes to mortgages loans is assuming all loans are created equal. Just as every person has a different style of home they like, mortgages are also very different. The reason is that while situations may be similar, we all have different incomes, different debts, and other factors that need to come into play. Once the right loan has been established, it becomes the new homeowner’s responsibility to ensure everything with the mortgage is right. For instance, it is common to find small annoyances with mortgages. While not difficult to fix, they can … Continue reading →

Mortgage Borrower Cautions

As you begin the process of looking for a lender on a home, you will have a number of considerations to protect yourself. While most lenders are honest and eager to work hard to make your dream come true, there are some more eager to simply make a buck without giving the borrower much consideration. Therefore, we wanted to provide some mortgage borrower cautions so you can buy your home without major complications. For one thing, be aware that if you have less than perfect credit, most lenders will want to be compensated for taking on the higher risk. Therefore, … Continue reading →

Construction Loans

When you get ready to search for a home loan, the number and degree of obstacles faced with will depend on the type of new home. For instance, if the home were an existing new home, then finding lenders ready to loan money would be much easier than if you want to build a new home. The reason is that a mortgage loan is easy to find while construction loans are a bit more difficult. Then when you do find a construction loan, you will find a wide range of terms and fees. The bottom line is that if you … Continue reading →

Shopping for an APR

APR, or Annual Percentage Rate, is something you want to shop around for when comparing loan costs for your new home. When making this comparison, just make sure you are doing an exact comparison, meaning looking at like loan products and for the same amount. For instance, if you were looking at a 30-year loan for $150,000, then you would need to make sure all the loans being looked at are for 30 years and at $150,000. You will find some variations in APR, which can make a huge difference. If you were to receive two rates, one at 7.35% … Continue reading →

Understanding a Construction Loan

In addition to buying existing homes, we see a number of people who choose to build. In this case, a number of different loan options would be available, one of them being the construction loan. Different from a traditional mortgage, a construction loan is money that finances the construction or building of your new home. Typically, construction loans are handled by Fannie Mae and Freddie Mac, both governmental entities. One of the major differences with this type of loan over a standard home loan is that the construction loan makes the lender privy to the reasons why you want to … Continue reading →

What the Fed Rate Hike Means for You

On Thursday, the US Federal Reserve raised interest rates 25 basis points to 5 percent. This is the highest that the short term interest rate has been in 5 years. How will this affect your mortgage? Probably not much, at least not at first. While the fed was hiking the rate, mortgage rates on 30 year mortgages fell slightly last week. The average rate on a 30 year mortgage fell from 6.59% to 6.58%, the first decline after six straight increases. The Federal Reserve interest hike is not expected to have a big impact on mortgages, at least for the … Continue reading →

Your Mortgage – Coming To A Walmart Near You?

Walmart has been making some serious efforts to enter the banking industry. Last month, a federal hearing was convened to consider the possibility of conditionally granting Walmart a limited banking charter. Walmart says that it is seeking the charter to process its own credit cards, and not to open branch banking or make mortgage loans. Walmart has attracted considerable opposition to the banking proposal, and they have been trying to expand their financial services for years. The largest trade association, the National Association of Realtors, opposes granting Walmart a banking charter because of possible conflicts of interest. The main concern … Continue reading →

Interest Only Loans – Making the Dream House Affordable?

You thought you would be responsible, predictable. A nice conventional 30 year mortgage for you – fixed rate, real safe, nothing fancy, no adjustable rates. The trouble is, the monthly payment on such a loan for the house that is best for your family is beyond your budget. So your mortgage broker suggests an interest only loan. You want to know, what’s the catch? An interest only loan can be a good financial tool to get you the property you need and want, especially in an aggressive housing market. The pace of the housing market has cooled somewhat, but in … Continue reading →