Understanding Home Loans, Mortgages, Credit and Refinancing

 

Mortgage Insurance Back in Vogue

If you have less than a 20% downpayment to put on a loan, mortgage loan officers have been quick to suggest the 2-loan approach: An 80% loan at standard rates and a “piggyback loan for the remaining amount. The second loan is usually a home equity loan, but with today’s rising rates, can easily reach 9-12%, depending upon your credit score and how much additional downpayment you provide. Mortgage Insurance Back in Vogue

 

Understanding Home Loan Types and Options

There are only a few types of loans with a handful of different options. But the combinations can make your head spin. But once you understand these underlying types, the world of home loans will be a lot less complicated. Home Loan Types

 

Income Requirements to Buy a Home

A good credit score is crucial for receiving a good interest rate, but banks will also look at your income and debt when deciding whether you qualify. They rely on two ratios, often called the “front-end” ratio and the “back-end” ratio which are the key to Income Requirements to Buy a Home.

 

Your Credit Report and Credit Score

Nothing may be as important for your home loan and your resulting interest rate, than this three digit number calculated by companies you've probably never heard of. Learn About Your Credit Report and Credit Score.

 

Home Equity Loans

The principal that you've been paying into your mortgage, combined with rising home values has created a financial asset that you can use. Through a Home Equity Loan, you can borrow against this asset and use the money to pay off debts, consolidate credit cards, improve your house, buy an investment property or just enjoy the money. Learn more about Home Equity Loans.

 

Re-Financing Your Home

Even though rates have been rising in the last few years, homeowners still have many reasons to refinance their home loans. The main reason is debt consolidation, whether you are combining credit card debts with your home mortgage or if you have more than one home loan. You can also refinance to a lower rate if your credit score improves. Find out more about the pros and cons of refinancing your home.

 

Pre-Qualify Before You Begin Home Shopping

Don't enter the real estate marketplace without knowing where you stand. Pre-qualify first and put yourself in position to understand what you can afford and even improve your bargaining position. Pre-Qualify for a Home Loan.

 

 

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DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.