Mortgage Loan Information - Know The Basics When You Refinance or Purchase a HomeWritten by Carrie Reeder
If you are currently looking for a new home, chances are that in all excitement you won’t really give any thought to type of home loan mortgage you take out, instead going with first one offered to you. This could be a serious mistake – costing you thousands, if not tens of thousands. Make sure you know all about different types of home mortgage loans before you starting looking for that new dream home!Here are some of basic types of mortgage loans: Fixed-rate home loan mortgage - As name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay same monthly installments for life of home loan. The benefit of a fixed-rate home loan is that you can easily budget for repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time! Adjustable-rate home loan mortgage - Mirroring fixed-rate mortgage is adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case interest rate is not fixed, but is adjustable (or ‘floating’ as you may also hear it called). The upside to adjustable-rate home loans is that interest rate at start of loan period can be lower than fixed rate would be. The downside is that it is difficult to budget for, as amount can change, and you are at mercy of something outside of your control – interest rate fluctuations, which can change quickly.
| | Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as PossibleWritten by Carrie Reeder
If you have a poor or bad credit history with something in your past like a bankruptcy or a foreclosure, you know how difficult it can be when you try to get financing for a home mortgage purchase, refinance, home equity or second mortgage loan. Its important to be persistant in looking because there are home mortgage loans out there for people with bad credit.There are many articles online that will tell you to be wary of subprime lenders, those lenders who specialize in doing hard to approve loans. There are many things to be careful of with subprime lenders, who can charge interest rates that are far too high and have unreasonable pre-payment penalties. However, if you shop around and talk to many different mortgage brokers, you should be able to find a lender that can get you approved and with an interest rate and terms that are fair. The best way to make sure you are getting lowest interest rate and terms possible, if you are looking to get approved for a mortgage loan after a bankruptcy or foreclosure, is to apply with as many different lenders as you can. You will want to compare as many mortgage loan quotes as possible to make sure you are choosing best one. When you have a low credit score and are applying with sub prime lenders, main thing you need to be careful of is to make sure that your credit report is not pulled until you have pretty much decided which lender you are going to want to work with. Every time your credit is pulled by a mortgage lender, your credit score will drop just a tiny bit. That is why you need to be careful. Sometimes even as little as a 5 point drop in your credit score can be difference between getting approved or turned down for a mortgage loan. Most mortgage lenders, especially those that specialize in hard-to-approve home loans need a credit score of 585 – 600 or higher in order to do 100% financing with no money down on your home loan. The bottom line is, you will need that score to be as high as possible.
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