Traditional mortgage down payments have always been 10 to 25 percent of the total purchase price of the property. 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.
A real estate appraisal is an evaluation that determines the value of a property. There can be many different reasons for having an appraisal conducted, but one of the most common purposes is to determine the market value of a house before a mortgage transaction. more
FHA mortgage loans require borrowers to wait three years after a foreclosure and two years after a bankruptcy before applying for financing. Good credit since the incident is generally a requirement as well. more
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Most mortgage banks and lenders traditionally prefer to sell off any home loans they make to the secondary market as soon as they make them. But for one segment of the market – the jumbo loan – lenders are having a change of heart. The secondary market – investors who buy up securities made of mortgages that have been originate by banks and bundled together in groups – has only been able to purchase 2.3 percent of all jumbo loans made in the first half of 2014, according to industry newsletter Inside Mortgage Finance. When compared with the 49.3 percent of jumbo loans in 2005 that were securitized, you have to ask yourself why. For starters, mortgage loan standards have been severely restricted since the housing collapse six years ago. It has been much tougher for those with small down payments or less-than-perfect credit histories to obtain home loan financing. On the other hand, those seeking jumbo loans – mortgages over $417,000 in most of the country and $625,500 in the nation’s priciest areas – typically have very large down payments and great credit as well. These loans are viewed as safe bets and have become a highly desired commodity for banks and investors alike. Because these are the least risky mortgages and because the jumbo loan market is booming right now, many lenders are deciding to hold these loans on their books instead of selling them off. The lenders are making more money from those jumbo loans with annual interest rates of roughly 4.2 percent whereas the savings account rate is only around 1 percent a year these days. And the changes in the market are turning into benefits for jumbo borrowers as well. Lenders who plan to keep the loans themselves can usually offer better interest rates or more attractive loan terms. Says Guy Cecala, Inside Mortgage Finance CEO and publisher, “The case could be made that borrowers are better off without a mortgage-backed securities program than they were before,” he says. more