Home Loans For People With Adverse Credit HistoryWritten by Carrie Reeder
Whether you are planning to purchase a home for first time or refinance an existing mortgage, plan on comparing lending companies before you accept a financing offer if you have adverse credit history. Sub prime lenders specialize in offering loans to people who have a high-risk credit history. In return for accepting this risk, they charge higher rates and fees. But not all sub prime lending companies offer competitive rates. Lenders can stack fees into loan or charge excessively high interest rates, so it is best to compare financing offers. Check Online Mortgage websites offer a convenient and competitive way to gather financing quotes. Through such websites, lending companies know they are in direct competition with others, so they offer their best quote. You can also complete your loan application online once you have chosen a competitive offer. Compare Rates Interest rates can vary a couple of percents between lending companies. Over lifetime of your loan that can add up to thousands of dollars. When comparing rates, make sure that you gave out same information. Differences in loan amount, down payment, and income level affect rates.
| | Home Mortgage Loan Information - Which Type Of Home Loan Is Best For You?Written by Carrie Reeder
If you are considering buying a home, then you may be more than a little confused by all of terms you hear about home loans. After all, lenders throw around words like fixed rate, balloon mortgages and adjustable rate mortgages without a thought. But if you aren’t at least familiar with basics—those terms can be pretty confusing! Here’s a basic guide to three most common types of home loans. Study it, and determine which one is right for you. Fixed Rate Home Loan If you are thinking about buying a home and staying in it until you pay it off, then you will probably want a fixed rate home loan. With this type of loan, you will be assigned a fixed interest rate, and then that rate will not change for life of loan. If interest rates skyrocket, yours will remain same. On other hand, if they plummet, you will likely be paying a higher rate. (You can always refinance in order to get a lower rate.) Adjustable Rate Mortgage (ARM) The interest rate with this type of loan goes up and down with market. In other words, if interest rate is low, rate on your home mortgage will be low, but if it’s high, your loan interest rate will reflect it. And because interest rate on a home mortgage loan affects payments, you will never know from reporting period to reporting period what your monthly mortgage payments will be. This type of loan obviously isn’t for everyone.
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