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The Zero Down 80/20 MortgageMatthew Allen This is an excellent loan for those that are lacking the down payment required for other types of mortgages. The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage. If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil. If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase price. Many times you will have two choices when it comes to the second mortgage portion of the 80 20 mortgage. The second mortgage can either be a fixed second mortgage or it can be a line of credit. If it is a fixed second mortgage. The interest rate is fixed for the entire length of the mortgage. Most fixed second mortgages are a 30 due in 15. Meaning that the second mortgage is amortized over 30 years, but is due in 15 years. Basically it is a balloon payment. Don’t let this scare you. Statistically people refinance or sell their home every 7 to 9 years any ways. If it is a line of credit as the second mortgage. The interest rate will fluctuate as the Federal Reserve adjusts the prime interest rate up or down. The benefit of going with the line of credit as the second mortgage is that the interest rate is normally much lower than the fixed second mortgages rate. It can be 2% to 5% lower. If you are considering doing the 80 20 loan have your loan officer compare the two different options if you have both available to you. You may also want to consider an 80 20 interest only loan. The interest only loan could save you hundreds of dollars in mortgage payments every month. This can help you purchase a more expensive home or keep the payments down on the home you want to buy
| | | | RELATED ARTICLES What is Bridging Finance Once you understand what the term, “Bridging Finance” means, it’s easy to understand how it got its name.The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured.Bridge loans are commonly used to “bridge the cash gap” when completing commercial real estate transactions. What on earth are Home Equity Loans Home equity loans are one of the most common types of financing for doing improvements on your house. These loans are not necessary used for home improvements but can also be used to simply obtain extra cash. It is essentially a standard loan, based on the equity you have in your house. This is as opposed to mortgage loans which are the loans used to purchase a home. Equity is the value that you have paid on your mortgage loan. Should You Get A Blog A blog is a type of website. It allows the website owner to easily write messages that get posted to the site automatically, often in a journal or diary-like style. A particularly appealing thing about blogs is that your readers can comment back to your posts fairly easily, and a continuous stream of fresh conversations result. This is a good thing. 3 - Pointer by Gary Whittaker Point 1 - Red Sox Win! Red Sox Win! What is a Commercial Business Loan A commercial business loan is designed for a wide range of UK small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Bahamas Real Estate Guide to Permits, Residency and More White sand beaches, clear blue waters, tax breaks, real estate and property; the Bahamas never looked so good. And yes, I said real estate. Bahamian real estate is hotter than ever. Eliminate Debt Fast! How would you like to be debt free in only a few years, including zero mortgage debts! Sounds too good to be true Well check out this easy debt elimination plan from www.nodebtever.com - the plan the Banks DONT want you to know about! First off, you need to do a little groundwork. Those debts took some time to build, so getting rid of them involves a little concentration. Understanding a Commercial Mortgage In many ways a commercial mortgage is just like a residential mortgage in that you pledge real property as collateral against a loan to either buy or refinance that property. You can also receive a commercial re-mortgage and use it as a line of credit for any business purpose. When you use a commercial mortgage to buy property, or to raise funds for any other business purpose, the lender retains an interest in that property until the loan has been paid in full. Unlike other types of business loans, which usually have a relatively short repayment period, you can take out a loan for as long as 30 years if you like. Understanding Real Estate Terminology Purchasing a home can be a complicated and confusing process, especially for first-time buyers.Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn. US Commercial Mortgage Basics Commercial mortgage loans are used when purchasing structures such as office buildings, apartment complexes, health care facilities and retail outlets. Whether it’s a hi-rise tower or a family-owned restaurant, buyers typically need additional funding to complete the transaction.Commercial mortgages are what they pursue. Hassle-Free Homebuying Perhaps you’d like to take advantage of today’s great real estate market in housing but feel a little intimidated by everything that’s involved. Why Choose a Secured Loan One of the reasons why most people choose a secured loan is that they are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. When a Real Estate Agent May Not Be The Best Option Historically, when homeowners wanted to sell their home, the first call made would be to a Realtor.Since the early 1900’s, Realtors have represented homeowners during the process of selling their home, which is usually to another homeowner.Real estate brokers hold state regulated licenses that allow them to market real estate on behalf of the owner.The national average for broker commissions is approximately five percent.In many cases, another broker will bring the buyer and receive typically fifty percent of the commission.When the majority of homeowners sell their home, they believe a real estate agent gives them the best chance to maximize the amount they receive and the agent commission will come out of their proceeds at closing.This is a process that takes place everyday throughout America. 5% Down Vs. 10% Down - A Comparison It has always been an issue for home buyers to save their down payment. Many people, on advice from various people wait to save 10%, rather than moving into the home sooner with 5% as a down payment This is not always a good idea. Let me explain; Financial Wizards Prepare! 4 Lil Tiny Duckies!... A If you are going to transform yourself into a financial wizard, with money, security, and assets, then you need to begin this transformation by clearing out the cobwebs, and making way for a new tomorrow. Tax Assessment/Appraisal: How Do I Know What My Home is Worth If you are in the home buying or selling market, it’s important to understand the difference between tax assessment and appraisal value. Concentrate on the appraisal value because this determines your asking price. The $30 K Wedding Alternative Thwart wedding bell apprehension when you explore your nuptial options. How Much Rent is Too Much Rent You want what every apartment renter wants: the most comfortable surroundings you can get for the lowest possible monthly rent. Some of todays newly constructed apartment communities have taken luxury to an entirely new level. Some complexes have gas fireplaces, TV monitors by the front door, drive-through mail service, and office equipment for their tenants, among other creature comforts. Every renter has to consider the importance of amenities like these. Are they important enough to you to merit a rent increase of perhaps $200 more than the rent you pay now, at a modest yet affordable complex While some of us consider an apartment as just a place to hang ones hat, others place a premium on home surroundings. But how do you determine how much you can stretch your budget -- without ending up in the poorhouse in the process Top 10 Things to Consider on Home Loans Here are our Top 10 most important things to consider when shopping for a Home Loan, Equity Line of Credit, or Refinance, courtesy of LoanResources.Net:Down-PaymentFixed Versus Adjustable RateAPRLoan TypesLoan Amount Qualification, IncomeLoan Amount Qualification, ExpensesEmployment and Credit HistoryPointsSub-Prime LoansShort-Forms More Business for Sellers, Builders Many of us thought that by now the real estate market’s favor would have swung from buyers to sellers, but that does not appear to be the case.With summer coming to a close, some would argue that a solid home buyer in today’s flat real estate market is the commodity of choice. |
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