A negative amortization mortgage loan or NegAm as it is sometimes refered to is basically when aloan payment for any period not enough to cover the interest charged over that period of time. This causes the outstanding balance on the loan to increase instead of decrease with each payment made. This type of loan is [...]
A reverse mortgage is a mortgage loan or lien against your home that you do not have to pay back for as long as you live there. It’s similar to a home equity loan in the fact that you are taking equity out of your home in the form of cash. You can get the [...]
An adjustable rate mortgage, commonly refered to as an ARM loan is a loan where the interest rate adjusts periodically based on a variety of indicies. There are different variations of an ARM loan some of which have a fixed rate for a certain period of time such as 3, 5, 7, or 10 [...]
A home equity line of credit or HELOC as it is commonly referred to is simply what it says. It’s basically a line of credit similar to a credit card which allows you to use your home as collateral. This gives you a better interest rate on the loan than a credit card, but puts [...]
Fixed mortgages or fixed rate mortgages are loans that have an interest rate that remains the same throughout the entire term of the loan. Adjustable rate mortgages or arm loans have interest rates that “float” or adjust according to current prime interest rates.
There are different variations of fixed mortgages which include different terms (how long [...]
Land loans or land mortgages are designed for borrowers who are planning on building a home but aren’t ready right now. They are planning on building their own home in the near future and at that point will be looking for a construction loan.
Mortgages on Land loans are usually not as easy to obtain as a [...]
A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs. VA loans are designed to offer financing to American veterans or their surviving spouses. The goal of VA home mortgage loans is to make the lending process more available to veterans and easier financing options. VA [...]
FHA home loans are a great way to purchase or refinance your next home. When it comes to mortgages there many different possibilities for financing. The best way to decide which type of loan is best for you it to be informed and educated about all the different types of loans available (FHA and Conventional). [...]
Conventional loan defined
A conventional loan is basically any mortgage loan that is not insured by the federal government or the FHA (the Federal Housing Administration). A conventional loan was the first type of traditional mortgage loan made by lenders. It was basically a fixed rate mortgage for the entire period of the loan. Lenders basically [...]
Sometimes due to unforeseen financial expenses you could fail to make the payment on mortgage loan and in such case, Mortgage Refinancing would be the best alternative. If you are looking for a mortgage refinance and have poor credit then you will probably have to borrow from a subprime mortgage lender. Subprime lenders specialize in writing [...]