By financen | June 28, 2017 - 4:17 pm - Posted in Mortgage

Once upon a time, mortgages that required zero or tiny down payments were all the rage, but they began to lose favor after the housing bust. Now, they are making a big comeback. According to a news article published on The Real Deal, several major lenders are currently offering mortgages with one-percent down payment, while a top 10 retail home loan provider, Movement Mortgage, has introduced a new home financing option that requires absolutely no down payment.

Movement Mortgage’s Nothing-Down Mortgage

Movement Mortgage’s new zero-down mortgage program offers a non-repayable grant of three percent or less to first-time home buyers. This enables them to qualify for a conventional mortgage with a loan-to-value ratio of 97 percent, which essentially means nothing from the applicants and three percent from the lender. For instance, in the purchase of a $300,000 home, a borrower does not have to invest anything from his or her personal funds, whereas Movement will contribute $9,000. The terms of the mortgage also allow a home seller to contribute towards a buyer’s closing costs.

mortgage

Other Lenders Offering Zero-Down Mortgages

Besides Movement, there are several lenders that you can get a zero-down mortgage from. Navy Federal, the biggest credit union in the country, has been offering nothing-down home loans to its members for years, with amounts reaching as high as $1 million. The Department of Veteran Affairs and the NASA Federal Credit Union are two other government-backed lenders that provide mortgages requiring no down payment. If you do not qualify for zero-down mortgages from government agencies, you can turn to major lenders that offer a one-percent down option, such as Quicken Loans and United Wholesale Mortgage.

Considerations When Getting a Zero-Down Home Loan

While a nothing-down mortgage enables you to move into your new home quickly, it has its disadvantages. Since lenders have to take a greater risk with zero-down financing, they require you to have an excellent credit score, and they also charge significantly higher interest rates. In the event that real estate values fall, you may owe more than the value of your home. If you are not prepared to take the risks that come with a zero-down home loan, you may want to consider other options, such as borrowing from your family members or taking out a reverse mortgage if you have full equity in another home.

A low or zero-down mortgage can be a tempting financing option, but it is also a risky one. Learn more about it and see if it suits your financial situation before you apply for it.

Comments Off on Zero-Down Mortgages Are Back – Are They a Good Option?
By financen | November 7, 2016 - 5:44 pm - Posted in Mortgage, Property, Real Estate

It makes you feel very bad when you realize that your dream property is not as good as you thought for the first time. And more importantly, if you find out later that your home needs several thousand dollars in repairing it some portions, you will feel completely disheartened.

You should get a thorough inspection done before buying a house. Using some common sense while buying a property will help you in avoiding many common mistakes. There are some things that you should be always wary of. Here are a few warning signs that should be kept in mind before you sign the contract.

Problems inside the house : There may be some internal problems inside the house that can be easily identified, such as termites, damp spots, and cracks in the walls and ceilings. But there may be some other major problems that are often not disclosed by the seller. For example, if there is a cracked tile in the bathroom, it will indicate water damage, if there is any mould, it may be due to ventilation problem. If there is any brown areas, it may be due to poor wiring connection. Therefore, it is important to get your house properly inspected before buying it. You must also check out other things like water pressure, sticking windows, pipe and drain leaks, insulation levels, and get pest control done. Write down all these points in your check list and get your house reviewed by a professional.

Buying property

property in real estate market

Problems outside the house : Likewise, there may be some problems outside the house as well and in many cases, the seller does not want to mention these points to the overexcited buyer. One crucial element is orientation. If you are working from home and that area is receiving very less natural light, you may want to reconsider. You can also check out the fuse box, signs of the asbestos, blocked drains, roof damage, garden watering systems, condition and age of nearby trees, and pollution levels. After doing the initial assessment, you can ask a professional to review it thoroughly.

Incomplete documents : There are always chances of your identity getting stolen. If you buy your valuable property without necessary documentation, it will be the most dangerous situation to go through, not only financially, but legally and emotionally as well. Never make such a mistake in your life. You can avoid such situations by hiring a solicitor who can be of great help during your purchase. It is worth spending some money on a solicitor rather than paying for the losses in the later stage due to lack of proper documentation.

Shady property history : Before buying a property, you should always inquire about its details, like when was it first built? What was on the land before the property was built? Why the tenants keep changing. If you get the answers to these questions and are satisfactory at your level, then you can move ahead. But if you are not satisfied, then it is better to pass. Because the seller may be trying to cover the shady past history of the property.

Unprofessional seller : The seller or the real estate agency should be able to answer to your basic questions about the house. If you are not convinced by their answer, you can always shop for the next one. If the property has a bad history, and the seller is trying to hide it, then it is better to leave that one and search for another good property.

Comments Off on Making intelligent decisions while buying a property
By financen | December 2, 2014 - 5:37 pm - Posted in Mortgage

Brokers are professionals who act as middle men between two or more people. Mortgage brokers are professionals who can help you get a better rate on your home loan. Though you might think that brokers only work with those currently shopping for a loan, they can also work with those who have an existing loan. Brokers may also help you reduce your debt and get your debt issues under control.

Get Fast Approval for a Home Loan

When it comes to mortgage rates Burlington brokers look at current market factors and the rates charged by lenders. Your credit history often determines the interest rate that you pay on your home loan. The more payments you make on time and the lower your ratio of debt to credit is, the lower of an interest rate you’ll receive. Brokers actually help you shop around to ensure that you get the best rate. Instead of going to multiple banks and lenders, filling out multiple applications and waiting for a response, you’ll know quickly which lenders will loan money to you. You can also get pre-approved for a loan, which lets you shop for a home before you have the money.

Mortgage

Transfer Your Existing Loan

Do you have a high interest rate on your current home loan? You might think that you’re stuck paying off that loan for the next ten years or longer, but you can get a better rate on your loan. Brokers can help you shop around for a lender willing to take over your current loan. This shouldn’t add any additional time to your loan, but you will have the chance to save thousands over the long term. Brokers work with more than 50 different lenders and can help find the best interest rate for you.

Consolidate Your Debt

If you feel like you are constantly swimming upstream and that you will never get your head above water, it’s time to get in touch with the Kupina Mortgage Team or a similar broker. There are different types of debt consolidation programs that can reduce the total amount that you owe and bring down the amount that you must pay every month. Talking to a broker is the best way to find out more about the debt consolidation and mortgage programs that are open to you and how you can apply.

Comments Off on Three Reasons to Work with a Broker for Your Mortgage Needs
By financen | October 2, 2014 - 2:18 pm - Posted in Mortgage, Mortgage lender

Naturally, if you are shopping for a home loan, you will want to find a good mortgage broker, but there are a variety of services that mortgage brokers in Saskatoon can provide you.

  • Consolidate your debts

 One overlooked service is debt consolidation. Loans are available to pay off all of your debts, leaving you with a single payment each month. Debt becomes manageable, and only one payment needs to be paid. In addition, the payment will be less than the total of your monthly payments you are currently making for your credit cards and other miscellaneous loans.

  • Refinancing

If you have equity in your home, you may want to refinance your mortgage. This can result in lower monthly payments as well as cashing out some of the equity, so you can use it for whatever you desire. Another purpose of refinancing is to convert your current adjustable rate mortgage into a fixed rate mortgage. If you believe interest rates will be higher in the future, this is a smart move for your personal finances. A mortgage company can advise you about whether this type of refinancing is right for you.

  • Builder finance loans

A good mortgage company is diverse and will offer lending services to construction companies. These services will extend to projects that are in process to allow you the cash advance you need for your company. In addition, you will not be chard front end or back end fees for these loans.

There are several examples of mortgage Saskatoon brokers that have the services outlined above. One example of this is the Sky Financial Corporation.

Comments Off on Services of a good Mortgage Broker
By financen | September 20, 2013 - 7:06 pm - Posted in Mortgage
mortgage-insurance

mortgage-insurance

If you are like most average people, then you have placed hundreds of thousands of dollars, not to mention the expense of time, effort and love into your home. When you have made the choice to invest in something this committed, then you owe it to yourself to provide every bit of protection for that investment that you possibly can. For the investment of real estate, the best protection is often mortgage insurance. However, the mortgage protection insurance cost is many times too much for the average home owner with a mortgage to bear. This is where a little judicious use of research comes in quite handy.

The service that is found at http://www.mortgageprotection.com/rates.htm can go a long way in saving you a great deal of money on your mortgage protection program. When it comes to insurance, the best way to beat the market is to know everything about the market at once. Having a website that allows you to place all of the mortgage insurance companies side by side is undoubtedly one of the best tools for research that you have in your fight to get the lowest price for mortgage insurance that you possibly can. When companies are placed side-by-side, they cannot fool you with comparisons that do not apply to your situation. You can also check out many companies that you would otherwise have no knowledge of without the comparison website.







Comments Off on Mortgage protection insurance
By financen | August 27, 2013 - 3:39 pm - Posted in Mortgage

Mortgage rates are hard to understand. After shopping around, you will realize that the quoted rates are not the same as the one advertise. There are some major factors that will determine the mortgage rate. Remember that this vary from one customer to another.

mortgage-rates-determined

mortgage-rates-determined

  • Credit score: Borrowers don’t realize that credit score is something that could affect their interest rate and it is hard to predict how much it is. Lender groups often give those with good credit scores the best rates. Even if you have a low credit score, you can still get mortgage. It is essential to monitor your credit score.
  • Location: The place where you live can affect the interest rate. Many people may not be aware but rates vary where you are in world. Although there is no written rule, it can be concludes that place with high cost of living will incur high interest rate. States with high interest rates include New York and California. Sample of low cost areas are Texas, Idaho and Wyoming.
  • Points: This is the reason why the interest rates on the ad are not the same when in the actual loan. This is due to the fact that it doesn’t include points. Points are prepaid interest that can lower down the interest rate. Every point can lower down the mortgage by one eight.


Mortgage Rates

Mortgage Rates

  • Down payment: When buying a property on a loan, this is very important factor to consider. The size of the down payment could affect the interest rate. For lenders, small down payment is seen as risky so it will be charged a high interest rate. Remember that putting less than 20% down will mean buying mortgage insurance. It will give the lender a protection in case of default. The annual charge of the insurance is about half percent of the loan. The rates of loan with insurance may vary.
  • Lender: As we all know lenders are different from each other. The interest rate will vary depending on which lender you apply. They offer various programs and structure their loans in various ways. Your friend might get a lower rate but not the best deal for you. For this reason, you might want to compare deals. When shopping around for a loan, you are looking at the best deal and the lowest mortgage rates in San Francisco. This is due to the fees and the closing cost that are embedded on the loan.







Comments Off on Factors that determine mortgage rates
By financen | November 27, 2012 - 3:33 pm - Posted in Mortgage, Reverse Mortgage
reverse-mortgage
reverse-mortgage

Many seniors today have heard about a reverse mortgage, but they do not fully understand how this type of home mortgage works. This is a type of mortgage that allows a homeowner to take equity out of his home and that does not require mortgage payments for many years. There are many benefits associated with a reverse mortgage that seniors can enjoy. Learn more by visiting MortgageRates.ca or reading the information below.

  • No Payments:

One of the most attractive features of a reverse mortgage is that there are no monthly payments associated with this loan. The loan repayment is due in a lump sum many years down the road. Upon closing, you can receive cash equity out of your house, and this can be used for any purposes that you need. Whether you currently own your home free and clear or have a traditional mortgage in place that you are struggling to pay off with a fixed senior’s income, refinancing your home with a reverse mortgage will yield no monthly mortgage payments.

  • Live on Equity:

Seniors often live on a fixed income, and any additional cash that can be used to supplement their income is beneficial. Many seniors are sitting on a nest egg in the form of equity in their home, but they don’t want to sell their home. A reverse mortgage allows you to pull equity out of your home without having to sell your home. Through this mortgage, you can supplement your income and remain in your home. This can improve your quality of life and ease financial concerns.

  • Paying Off the Mortgage:

There are various reverse mortgage programs available. Some can remain in place for only 5 years, but others may have a term of 10 or 20 years or longer. You can sell your home at any time to pay off your mortgage, or you can sell it when the mortgage is due. A home will generally increase in value from year to year, so there often will be additional equity in the home at the time the mortgage is due.

Once you understand how a reverse mortgage works and the many benefits that this type of loan can provide, you may consider talking to a lender or mortgage broker about how this loan may help you specifically. With Canada mortgage rates so low, now is a great time to apply for a mortgage and ease your financial concerns with a reverse mortgage.

Great Resources:

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten

Comments Off on What is a Reverse Mortgage and How Does It Work?
By financen | February 16, 2012 - 9:35 am - Posted in Mortgage

It may not be true for everyone, but for most people a second mortgage is a bad idea. Finance companies also call them home equity loans and home equity lines of credit. They do have benefits if used properly, but there is a lot of downside to them as well.

Unlike traditional home loans and first time buyers Mortgages, a second mortgage is a loan taken out on a home that already has a mortgage.

This is easier to do today than in the past because customer-hungry loan companies are devising new ways to create business. Therefore, the companies have been allowing second mortgages that take the total of both loans up to 125 percent of the value of the home. That is where the first problem begins.

When the total of your mortgages is more than the value of your house, you are ‘under water’ in the home. In other words, if you have to sell it, you will not get enough money out of it to pay your home loans off. For most people, this means living there for many more years if they can afford to, or if not, suffering a foreclosure.

Another problem is that it is harder to get any other kind of loan such as an auto loan. This, among other things, is because the loan may max you out on your available credit. Your debt-to-income ratio may be too high, meaning you do not have enough income to qualify for more credit until you pay the mortgages down. First time buyer mortgages are also hard to get if you have too much debt.

  • Who Owns Your Mortgaged Home?

Until you pay it in full, the provider of your first home loan owns the house. If you fail to pay the provider, it can foreclose on it and take it back. When you get a home equity loan, that provider now has a loan on the house as well and it can take the house from you too.

However, to do that, the loan company would have to pay off your first loan. If you owe too much money for the company to do that, it may decide to sue you instead.

  • How a Second Mortgage Makes Life Tougher

Obviously, a home equity line of credit is one more monthly payment you have to make. While you think you can easily make it now, a time may come when it becomes a burden. By then, it may be too late. The problem worsens with the next issue – not having the ability to refinance your house.

If you are thinking you can just refinance your house to get out of the problem, you are probably wrong. It may be three or more years after you take out the second mortgage before you can refinance. That allows time to build enough equity again to get a new loan.

Of course, as with all credit, interest is a big issue. It is even more money out of your pocket that you could be using for other things such as retirement funds. Additionally, every loan has fees and those take awhile to overcome, even with a low interest rate.

Second mortgages are not all bad, as long as you know what you are up against. It may be better to take one out and pay off credit cards rather than to pay high interest rates. If you do, just be sure you do not acquire the same debt again, or you will double your trouble.

Comments Off on Why Your Second Mortgage is a Bad Idea
By financen | November 7, 2011 - 6:59 am - Posted in Mortgage

While making a financial decision regarding your financial matters, you will always find it very challenging. So it is always safe to take a help of professional firm or a financing company however taking a help from these professional firms would cost you to you breath. So in order to do all this without taking any help, you have to use mortgage refinance calculators. The mortgage refinance calculators would make your life simpler by giving you the accurate figures to look at before you make your mind to take second mortgage on your house.

There are lots of various mortgage refinance calculators available in the market which has similar features. The important role of a mortgage refinance calculator is to adjust the settings according to your need. Since you are spending the money to purchase it and the property belongs to you, even the decision is going to be yours and it sounds fair enough that you expect it to work the way you want.

You can find the mortgage refinance calculators online on different websites at an affordable price with variety of options and find out where you stand. The ways of calculation in these calculators are very simple, all you need to do is insert the mortgage rates and other necessary information and the calculators will show you the exact figure that you were looking for. The results will tell you to do what you were thinking, and it will also tell you the cost that you have to bear with different companies.

The homeowners are really happy when they come to know that the mortgage refinance calculators are free of cost. You have to bear the entire capital of the whole process when you start working with a specific financing company in accordance with their facilities, however you should always opt for the best and the one which satisfies your needs therefore you should not depend only on just few calculators as there is ample amount of information available on the internet.

Well in day to day life people are so busy that they don’t even have time to meet their relatives, however you would be very glad to know that how quickly and with convenience you would be able to find the cost of your another mortgage that you have planned to take out. It has become very easy and simpler to get the mortgage refinance calculators to use, and especially when you are getting them at your home. This gives you an opportunity to save time to decide which calculator you want to choose, you should take precaution to find out the perfect calculator so that you can be safe and happy again.

If you want to know vastly about Mortgage Refinance then go through the article: http://www.federalreserve.gov/pubs/refinancings/default.htm

Comments Off on Mortgage Refinance Calculators – The Best Tool for You
By financen | June 2, 2011 - 3:37 pm - Posted in Mortgage

Various forms of programs regarding home loans are available in the present era of financing market place starting from low money FHA loans, VA mortgages, and USDA rural housing loans to non-conforming jumbo loan programs, as a result it becomes quiet difficult to make a choice for the perfect product. But fortunately highly skilled mortgage professionals are keenly interested in showing you the way to go for the best product. So it’s our responsibility to view the following question before going to mortgage lender or broker.

1. As far as refinance is concerned there are ample of question that clicks in to our mind say for instance amount of money you are going to invest or say what is your share at home. Well the answer to this question may be that you are opting for government backed product such as VA, FHA or a USDA loan.

2. To qualify for the best rates you should have your credit score above 740, and if your credit score is below 610 then you would be left with very limited source. American Financial Resources offers a low credit mortgage product for those people with credit scores down to 600.

3. If you are planning to reside only for six to seven years then it is preferable to go with the adjustable rate mortgage. You have an introductory rate which is stable for some time with adjustable rate mortgage before jumping up or down based upon a loan margin and the index that loan is tied too. Before moving forward you must be sure of the pros and cons because adjustable rate mortgage are risky at times.

4. In reality we should always spend according to our income in order to avoid any kind of crises in future, so we should always go for such jobs that satisfy our needs. In order to eliminate the risk of high debt to income ratios banks have strictly have set up certain important guidelines.

Therefore you can hire a highly skilled mortgage professional in order to know your aims and objectives. Well for a fruitful result you should always hire such mortgage lender that has terms with the best business bureau or say licensing authority.

Comments Off on Comparing Mortgage Programs
By financen | March 2, 2011 - 3:02 pm - Posted in Mortgage

When buying a house for the first time the home buyers make a token amount of money as a mortgage down payments or down payments gifts.

Down payment gifts are heavily regulated. Since many first time home buyers are lacking funds, this makes down payment assistance programs useful. Without programs such as this, many first time home buyers would find it impossible to make that first purchase.

Lenders like to see the buyer have a state in the purchase. So in this brief article I want to help you understand how they work. Try to put yourself in the shoes of the lender. When using down payment assistance or down payment gifts the lender assumes 100% of the risk.

That is why the only proper way for this type of help to work is it has to be a gift. Now you may be wondering, how can I get a gift like this? If this type of mortgage down payment assistance was not regulated, there could become a lot of loan sharks out there.

All FHA loans allow for down payments assistance for the first time home buyers. The gift for down payment can come from anywhere it can be from any relative or friends or even from a charity. However the gift you would be using as down payment has to be documented to prove that this is a gift not a loan. This is just an assurance to the lenders that even you have a small amount of interest in the property. That interest of course is equal to the gift which was used as the down payment.

Now, what if you don’t get any help from your family members or friends for the down payment assistance, we can use a charity. However, it is not exactly the same as if you had gotten a gift from a family member.

There are charities out there that will use the seller’s proceeds as the down payment assistance for you. So then, if we do not have a family member that can help and if we have a problem finding the charity, we can ask the seller to offer the down payment assistance.

Now you must be wondering how does it work? The seller makes a donation to the charity and then the charity makes the down payment for you. Now you may wonder, how can this actually be? Do you mean that the seller is going to make my down payment? No, that is not actually what takes place. The seller makes a charitable donation and the charity makes a gift to the lender equal to the amount of your down payment.

I do not know any other way to explain this other than it is what I call a legal way to launder money! As the buyer of a home, you know you need to make a down payment, so this type of mortgage down payment assistance program is available to you.