You don’t need 10% or 20% down to get a home loanWritten by Syd Johnson
The rapid increase in home prices over past couple of years have left many potential home buyers struggling to come up with their 10% or 20% down payment. If you live in a hot market like Los Angeles, Manhattan or Miami, you might be able to afford monthly payments on a home loan but have a hard time coming up with one time cash for a down payment.If you can’t come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created many different solutions to help you get financing for your new home. 5% down is an option One of top ways to get home mortgage financing is with a 5% down payment. This gives most customers a huge break on amount of cash that they need to purchase a home. In past, 5% down home loans were only available through government funded loans like Veterans Administration Loans.
| | Get a biweekly mortgage or make extra payments on your own?Written by Syd Johnson
Consumers are more aware than ever of advantages of a biweekly mortgage. This is a type of mortgage where you make two equal payments per month instead of one. A Biweekly mortgage is great because you end up making one extra payment per year. This extra payment will decrease your principal and over life of loan, decrease amount of interest that you will pay for borrowing money.For average loan, difference means that your 30-year mortgage will be paid off in approximately twenty years. Today, lenders are eager to help customers switch to biweekly payment schedule because they get their money back in much less time. As with most loan or credit products, small monthly deposits plus time leads to a rapid reduction in your outstanding balance. Getting Started To set up a biweekly mortgage call your lender or servicing company and ask them to change your payment schedule. Always ask upfront if there are any fees involved. Usually there is one time administrative fee to set up your account. Some lenders will also charge a recurring fee that is added to every payment. Even fewer lenders will charge both a one time fee and recurring servicing fee. As long as exact amount of charges are stated up front you should still see a significant decrease in your loan balance annually.
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