First time home buyers can find national and local mortgage lenders onlineWritten by Syd Johnson
If you’re a first time home buyer, you might be intimidated by looking into home loans. There is a wealth of information online and offline to help you learn about home loan application process, but you must know how to sift through all information. So, where do you get started? Comparing home loan resources.Brokers and bankers are looking for your business First time home buyers should know that there are many banks, brokers and mortgage companies waiting to take their business. In fact, almost anyone who wants to purchase their own home can get a home loan, if they have access to right consumer information. The most important part of process is your credit history and amount of down payment that you can provide. These two pieces are critical because they will determine type of interest rate that you are offered. Another consideration is that local resources can provide a personal touch with face-to-face meetings, but national mortgage lenders have a much wider selection of loan products.
| | Beware of Balloon MortgagesWritten by Syd Johnson
This is a mortgage where one payment, usually last one is bigger than any other payments. Balloon Mortgages are usually set up like a regular 30 year mortgage except that at some date in future, a large balloon payment will be due. The balloon payment is typically entire balance of mortgage. The due date of balloon payment and it's relationship to all other monthly payments is spelled out in terms of mortgage agreement.How are balloon mortgages structured? They are usually quoted in terms such as 5/30, 7/30 or 10/30. This means that a large payment is due at end of 5th year (payment 60), 7th year (payment 84) or at end of 10th year (payment 120). At this time, entire loan balance is due.
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