It is important to lock in your interest rate at the correct time. Good timing on an interest rate lock can save you thousands of dollars. Interest rates change daily so the longer a lender locks in a rate, the more risk that they have the market will move against them. Therefore you will have [...]
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 [...]
You should always get a mortgage preapproval from a lender before shopping for a home. A pre approval letter lets the buyer know you are a serious buyer. More importantly it gives you a general price range of the houses you should be considering. However, just because you get a preapproval from a lender for [...]
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 [...]
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 [...]