So about two weeks ago I got a letter in the mail from a finance company offering a new low interest rate on my home FHA home loan. I should hurry and take advantage of the new low rates and drop my interest rate from 6% to 5% with no out of pocket money. Because [...]
The simple definition of a construction loan is a loan used to build a home. A construction loan is very different from a typical mortgage loan. A construction loan may sometimes be more difficult to acquire than a traditional home loan, because there isn’t anything to be used as collateral for the loan. This in [...]
A bridge loan is basically a short-term loan pending another loan in the near future. They are often used to close on a property in a short period of time, stop the process of forclosure on a property, or to fill an immediate need for financing to plan for long term financing. A common use [...]
Interest only mortgage loans usually have an interest only period of 5 to 10 years. During this time period the borrower only has to pay the interest on the loan. After the initial interest only time period the remaining balance is amortized for the remaining term of the loan. For example if the initial loan was [...]
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 years [...]
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 [...]
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 [...]