Mortgage prepayment penalties - Just say noWritten by Jakob Jelling
One of most common terms found in a new home loan is a prepayment penalty. This type of penalty says that if borrower pays off loan early, commonly during first five years of loan, then borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% of mortgage balance. Sub-prime market loans will typically carry prepayment penalties more than standard mortgage loans.You may plan on keeping house for entire duration of prepayment penalty, and be tempted not to worry about it much. But sometimes life circumstances change, so it's wise to avoid any type of prepayment penalty if you can. A typical prepayment penalty might equal five months worth of monthly loan payments, so it's worth checking on. Of course, you should always ask (before you sign) if a new loan has a prepayment penalty. In fact, ask lending officer to point out to you in document where a prepayment penalty is discussed.
| | Real estate auction action - Buying a home at auctionWritten by Jakob Jelling
Due in part to popularity of U. S. Department of Housing and Urban Development (HUD)'s home auction program, more potential homebuyers than ever are buying homes at auction. Homes for auction aren't limited to just HUD, however. Many government entities auction homes for payment of back taxes, and some homeowners even auction their homes on eBay.com!Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner. Before auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check features, location, condition, and ownership history first. Afterwards, be sure to learn what property is worth by looking at sales of comparable properties in same area. Compare homes with same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.
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