Mortgage prepayment penalties - Just say no

Written by Jakob Jelling


One ofrepparttar most common terms found in a new home loan is a prepayment penalty. This type of penalty says that ifrepparttar 112292 borrower pays offrepparttar 112293 loan early, commonly duringrepparttar 112294 first five years ofrepparttar 112295 loan, thenrepparttar 112296 borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% ofrepparttar 112297 mortgage balance. Sub-prime market loans will typically carry prepayment penalties more than standard mortgage loans.

You may plan on keepingrepparttar 112298 house forrepparttar 112299 entire duration ofrepparttar 112300 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, askrepparttar 112301 lending officer to point out to you inrepparttar 112302 document where a prepayment penalty is discussed.

Real estate auction action - Buying a home at auction

Written by Jakob Jelling


Due in part torepparttar popularity ofrepparttar 112291 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.

Beforerepparttar 112292 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 checkrepparttar 112293 features, location, condition, and ownership history first. Afterwards, be sure to learn whatrepparttar 112294 property is worth by looking at sales of comparable properties inrepparttar 112295 same area. Compare homes withrepparttar 112296 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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