home mortgage loans

operaphantom2003 asked:


I have been turned down for many home loans because I don’t make enough money (36,000 family income) even though the mortgage, insurance, and taxes are less than I have been paying in rent for the past 5 years. But, my neighbor (single income family with 4 kids) qualified for more of a mortage than I have been wanting and she makes less money than I do. I mean, in my city, the average family income is 31,000 and the average home price is 190,000. How are people getting home loans when apparently they don’t qualify? Am I missing something and being too honest on the applications?

TRISTAN

Dwan J asked:


I just purchased purchased my first home for $181,900. I put 10% as a down payment$18,400 plus $500 ernest money. I had only 10K on hand a had to borrow the other 8K from another lender. My question with the 10% down payment does that give me some kind of equity if so when can I refi to get some cash to pay off the high interest 8K loan. Or could I get another loan at a lower rate and pay off the higher rate loan. I need some advice on the best way to go about this. Because we can handle the mortgage and the loan but want to get out of it as soon as possible. All serious suggestions are appreciated

DEANDRE

Alan Lim asked:


If you are an average person who does not have a comprehensive know-how about how a home mortgage loan works, getting one can be quite an overwhelming process. You will probably worry about your credit, whether you make enough money or not, and if you will qualify for your target amount. What makes the worrying even worse is that there are many myths all over that tend to hold back many of those who are actually qualified. For your sake, here are some mortgage myths you should stop believing in.

Myth No. 1: A home mortgage loan is impossible for those who have bad credit standing.

The Real Deal: Those with good credit standing have as much right to get a mortgage as those who have a bad one. Besides, the latter needs it more, right? Most, if not all lending firms offer mortgage options for those who have bad credit standing. These options have been designed most specifically for those with bad credit. Though terms may vary, you still have the chance to fix your financial problems with a good mortgage. All you need to do is inquire.

Myth No. 2: A mortgage loan is hardly ever possible for those who are self-employed.

The Real Deal: Though it may be a little more difficult for one who is self-employed to get a home mortgage loan from traditional banks due to lack of income documentation, there are many loan options offered by lenders that require low documentation for approval. You will be required of only a few documents to support your income to qualify for the amount that you apply for.

Myth No. 3: Home mortgage terms are impossible to negotiate.

The Real Deal: While the negotiability of mortgage terms varies greatly from one loan to another, it is never absolute. What you should do is talk it out with your lender to see what options are available for you, both now and in the long run. Most home mortgage loan terms can be tweaked and tailored to suit your needs. Besides, in the mortgage world, there is no such thing as a one size fits all loans. Thus, before looking around for the perfect home mortgage loan, make sure you know what your needs are, do your own research, pick a type that you think is best, and then negotiate accordingly.

Myth No. 4: Refinancing is only worth it if the interest rates go down by at least 2%.

The Real Deal: This myth has been in and around for many decades now. Take note that if you do the math, even a half percent difference can make a significant difference, especially if you are dealing with thousands of dollars. So, the best thing for you to do is to use one of the many home mortgage loan calculators available online and see how a little difference in rate can go a long way in relieving your financial difficulties.



LEO

Yahoo! Answers Law Enforcement asked:


Wouldn’t those companies make more money if they allowed everyone to keep their house and just lower their payment to something more affordable? Not only would they still be getting some money it would help the mortgage crisis. Correct me if i’m wrong.

CYRIL

reni768 asked:


I am in the process of buying a house and I know the lender said she had a deadline on completing the paperwork. She got the approval on Friday and says we can close this coming week though we have to come up with $3800 down. I have about 1/2 of that and I was wondering is there a time limit on an FHA loan on when you have to close or can our closing be pushed back a week or two for me to get the rest of the down payment??
We have not locked in a rate. My realtor is involved. I dont want my rate to change b/c we got a good rate. I may just have to go ahead and close this week. The money is part that I have saved, some my dad has given me and my sister is going to allow me to borrow some if needed. I guess I could say that money is a gift from her and me & her know between ourselves that I am paying her back!

WILBUR

Lorna Mclaren asked:


A second mortgage loan is a subsequent loan and subordinate to the earlier mortgage. In other words, a second mortgage loan is used as collateral pledged for the first loan.

Length of Second Mortgage Loans

Second mortgage loans have varying lengths with which they are eventually paid off. Some second mortgage loans may last for as long as 15 or 20 years. Other second mortgage loans only require one year for repayment.

When you’re thinking of taking on a second mortgage loan, you will need to know what term best suits you. Discuss the repayment terms of the second mortgage loan with your bank or lending company. For instance, you get a second mortgage loan worth $20,000 to make some home repairs. With this amount, you might want to take on a second mortgage loan that will allow you to repay the entire amount in one or two years. If you pay a second mortgage loan that has a shorter term, the monthly payments may be too high.

Payment Calculations for Second Mortgage Loans

Before taking on second mortgage loan, be sure that you understand a couple of things first. Know how much your monthly payments will be for that second mortgage loan. Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover.

Some second mortgage loans require you to make monthly payments on both interest and principal. Other second mortgage loans only require you to pay the interest of the borrowed amount.

The former type of second mortgage loans will allow you to significantly shorten your payoff period since with each payment you make, you are also chipping away at the principal. With the interest-only second mortgage loan however you will be required to pay back the entire amount that you borrowed as soon as the term ends. This type of second mortgage loan is also called balloon payment loans.

Second Mortgage Loan Costs

Fees may be charged by some lending companies for the money you borrow on second mortgage loans. The fees, referred to as “points,” are usually a percentage of the second mortgage loan. One point on your second mortgage loan is equivalent to one percent of the amount you borrow.

So, if you were to get a second mortgage loan of $10,000 with an eight-point fee, then you would have to pay $800 in “points.” Second mortgage loan companies may charge you in varying number of points so if it might be helpful if you do a comparison first.

Second Mortgage Loan Rates

Second mortgage loans have different payments plans. Most second mortgage loans have a fixed rate payment included in their payment plans. If you have a fixed rate second mortgage loan, the interest rate will be set for the whole loan term. This means that your monthly payments for your second mortgage loan will not be affected by any outside changes.

Some companies also offer second mortgage loans with variable rate payments. These variable rate second mortgage loans periodically experience rate adjustments. A variable rate second mortgage loan might be cheaper than a fixed rate payment in the long run. But this is only provided if the interest rates of second mortgage loans go down. If interest rates rise, then your monthly payments for your second mortgage loan will rise as well.



MARLIN

Jeanie S asked:


If you don’t put down 20% on a home loan you must pay Private Mortgage Insurance. So with all these loans going belly up why did ppl pay this and who took the money?

RALPH

Shirley F asked:


Will the rate increase if I add him to the mortgage after I have been approved and made a few payments? We make close to the same money and he will be paying at least half of the mortgage loan. I want him to be co-owner of the house even though he has 30K in credit card debt.

SHELBY

Alan Lim asked:


How much do you need?

Your search for a home mortgage loan should start by looking for a house. It is reasonable to start from this angle for a variety of reasons. The first reason is that if you are able to determine the cost of the home, you will be able to determine what type of home mortgage loan that will meet your needs. Secondly, with a loan at hand, you will be able to make instant payment. This dispels the danger of the money being used for some other purpose. Statistics have proven that most home mortgage loan applicants who have not yet found a home are usually tempted to use part of the money for something else. They end up pay for something lower than what they had anticipated.

What are the rates?

It is habitual that rates on a home mortgage loan will always fluctuate. Therefore, a case study of the market should be carried out. Get to mortgage experts and jointly carry out a conjecture of what the rates may be the next hour. There may be certain indications which will be used to tell how bendable rates will be. Of course, it may be difficult to come up with these rather than through the services of home mortgage loan experts.

Whatever the case, endeavor that your application for home mortgage loan is approved when rates fall and vise versa.

What is the tenure of the home mortgage loan?

A further imperative concern should be directed to the period of the loan. The period will impact on the amount of payment you will be opened to. A loan taken on a mortgage is usually given for tenure of between fifteen to thirty years. Keep in mind that a loan over a shorter period will mean paying a higher installment alongside a lower interest on the mortgage. A longer loan period will equally mean that you will pay less monthly, but higher rates. You will eventually end up paying more. The ultimate is to look for a plan that will fit into your personal financial program.

What is the type of mortgage?

There exist fixed as well as variable interest rate mortgages. These types of mortgages also have their impacts on the payment. It may be worthy to go in for a fixed home mortgage loan. This type of mortgage has an unbendable interest rate. The advantage of this is that you are aware of what you have to pay. You are not affected in rates climb. Although you will be paying more when rates go lower, there will be no distress because you had pre-prepared to make a higher payment.



MALCOLM