No Money Down Home LoanWritten by Carrie Reeder
Are you in market to purchase a home but are concerned about not having enough money for down payment? No down payment home loans or 100% financing for your mortgage loan used to be only advertised during late night infomercials and in obscure real estate publications. The good news is that if you want to buy a house but have little or no money available for down payment, there are mortgage lenders who are offering no money down home loans in your area. Currently, less than half of all homebuyers put down standard twenty percent. Among first time homebuyers, less than half put ten percent down, and nearly thirty percent of homebuyers financed total purchase price of their new home.
Generally speaking, better your credit better your chances of getting a zero down payment home loan. Fortunately, mortgage lenders are now offering no money down home loans to homebuyers who have less than perfect credit. You may pay a slightly higher interest rate than those who put down ten percent or more, but you can still get a great interest rate and easy payments when you apply for a no money down home loan. You can expect to pay private mortgage insurance if your pay little or no money down on your new home, but cost is relatively low and you will be able to drop private mortgage insurance after you have built a certain amount of equity on your home.
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.