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Commonly referred as the 30-Yr and 15-Yr mortgage
loans. The monthly mortgage payment and interest
rate are fixed these repayment amounts
will never change.
ARM's adjust their rates up or down during a
given period. This means that your monthly payment
may go up or down during your repayment term.
ARMs have lower interest rates than conventional
fixed rate loans.
Hybrid loans are a combination of fixed rate
and ARM loans. Hybrids start out at fixed rates
loans, adjusting to ARM after a set period of
years. These loans are referred as 5/1, 7/1,
and 10/1 meaning, fixed for "5"
years and then converting to an adjustable period
each "1" year.
You will make interest-only payments on your
mortgage loan for the first five or seven years
of your 30-yr amortized loan. After the set
period, the rates will adjust and the loan will
be amortized for the remaining 30-yr period.
These loans are popular among homeowners looking
to buy their first or higher-priced home.
Minimum payment plans have become popular in markets where housing
cost are high. For an initial period, you will make minimum monthly payments with the difference in the true cost of the mortgage loan added to your mortgage loan -- generally referred to as negative amortization.
You can borrow more money than the appraised
contractual purchase price and use the extra
money to pay closing costs. Homeowners use these
loans when they don't have enough money for
the down payment and closing costs
balloon and special type mortgages offers finance programs that can be attractive to some homeowners. Some of these loans are from years ago and may not be offered by all lenders.
the loan balance for jumbo loans are above the
maximum loan amounts established by Fannie Mae
and Freddie Mac. Jumbo loans are used to buy
large, expensive homes.
there are two parts to home construction financing:
1) use the construction line to pay subcontractors
and suppliers; 2) use the residential mortgage
to pay off the construction line after the home
construction is completed.
FHA, VA, and other specialized programs guarantee
mortgage loans made to homebuyers that meet
certain requirements. Generally these loans
require less than 20% down payment and have
loans that do not meet credit requirements are
referred to as B, C and D paper loans. "Sub-prime"
lenders underwrite B, C and D paper loans .
Each lender has their own criteria on approving
Depending on your financial status, you may qualify for
mortgage loan products that require
little or no down payment:
Review mortgage product: zero-down
Review mortgage product: government
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