Traditional mortgage down payments have always been 10 to 25 percent of the total purchase price of the property. more
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Qualifying for a home mortgage with a bankruptcy on your credit history requires time and money. Yet by understanding the requirements to get a mortgage after a bankruptcy and by carefully rebuilding your credit standing, you can apply for a loan and buy a home.
Your Credit Score
The three main U.S. credit bureaus--Equifax, Experian and TransUnion--maintain your credit history. Using that history, plus its own proprietary equation, the Fair Isaac Corp. calculates your FICO credit score somewhere between 850 and 300 points. Anything above 700 points is good to excellent, with... more
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In addition to mortgage loans for home purchases, there are also other loans available for various purposes that use the home for collateral.
Mortgage interest rates are determined by credit history strength, the number of points you pay, the size of your down payment and the type of loan program you choose.
Obtaining funding is crucial to buying a home. This requires applying for a mortgage, choosing a house that meets the appraisal standards, and determining the amount of the down payment.
There are dozens of different types of mortgage loan programs. They have been created to suit the varying needs of homebuyers.
When making a big move, it's essential to find out as much as possible about the schools, the neighborhoods, the housing costs and the community resources.
There are several alternatives to getting a 2nd mortgage for homeowners who need cash. Whether a borrower wants to put their assets on the line as collateral and has good credit, there are options. A home equity line of credit is one main alternative to a 2nd mortgage. This line of credit would equal the value of the property minus the amount due on the original mortgage. more
A second mortgage is a loan taken out against the value of your property, in addition to your primary mortgage. These loans can offer great benefits, but they certainly come attached with some large risks as well. more
- FHA Eligibility with Bankruptcy and Foreclosure
- Home Equity Loans for People with Bad Credit
- 3 Factors that Can Negatively Affect Your Mortgage Application
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- Low Down Payment Loan Qualification
- Should You Refinance? Make Sure the Timing is Right
- Short Selling a Rental Property
- What Lenders Don't Reveal About Home Equity Loans
- How to Get Approved for an FHA Loan despite Bad Credit
- 3 Reasons Banks Reject Short Sales
- Appraisal Basics
- FHA Loans for a First-Time Home Buyer
- What To Do When Mortgages Default
The Mortgage101 Blog
Many U.S. homeowners finally have a good chunk of equity in their homes again. And they are ready to put it to use. During the first quarter, the number of new home-equity lines of credit (HELOC) rose to 230,200, a nine percent increase from the year before, according to credit reporting company Equifax. With the average HELOC growing to $100,207, those loans meant that homeowners had the potential to use up to $23.4 billion, a level not seen in over six years, since 2008. HELOCs allow homeowners to have an open, accessible line of credit that they can make withdrawals from as needed and only have to pay the interest owed for an initial period. Home equity loans, on the other hand are like standard loans where the borrower starts out with a lump sum and payments plus interest begin immediately. These loans are popular with homeowners who want to do some home improvement, pay off other debts, or need to pay for a financial emergency. HELOCs were very popular during the housing boom when everyone had plenty of equity to tap, but after the mortgage meltdown new loans all but disappeared. Yet now after home prices jumped dramatically last year and continue to rise, lenders are willing to increase their home equity volume again. Historically low mortgage interest rates are aiding the pick-up in HELOCs, as the average rate fell to 5.01 percent in June, a decrease from 5.16 percent the previous year, according to mortgage data website HSH.com. As home equity lending has grown, so have the default rates on older HELOCs. Equifax reported that the delinquency rate on loans originated in 2004, whose interest-only periods ended this year have grown to 5.3 percent as of June, up from 4.0 percent last December. Unfortunately, home equity lines and HELOCs can be dangerous since they use the actual home as collateral. That is the risk borrowers must face to enjoy the use of their equity. more