Are Balloon Mortgages Risky?Are Balloon Mortgages Risky? Usually home buyers take out fully amortized mortgages when financing their home purchases. A fully amortized loan is paid off in periodic payments of principal and interest over the loan term, often 30 years. A balloon payment mortgage is one that has a final payment that is significantly larger than the other...
Are There Low-Down Payment Mortgages Without Mortgage Insurance?Are There Low-Down Payment Mortgages Without Mortgage Insurance? First-time buyers are often caught in a Catch 22. They usually have the hardest time qualifying for a mortgage. And they have the hardest time accumulating cash for a down payment and closing costs. But they are the buyers who are most often required to pay...
Does Anyone Use Seller Financing Anymore?Anymore? In the early 1980's, interest rates skyrocketed to 18 percent. This made it impossible for most home buyers to qualify for a mortgage. During this period, seller financing--also called creative financing--became popular. With seller financing, the seller of a property acts as the lender..
How Can I Get My Loan Approved on Time?How Can I Get My Loan Approved on Time? Applying for a loan can be tedious. Lenders require a seemingly endless amount of documentation. The key to getting your loan approved on time is to provide as much of the essential documentation as quickly as possible. Most lenders want copies of W-2s for the last 2 years and copies of pay check..
How Can I Get the Best Interest Rate on My Mortgage?How Can I Get the Best Interest Rate on My Mortgage? It's natural to want the lowest possible interest rate on your home mortgage. The lower the interest rate, the lower the monthly mortgage payment. The lower the payment, the easier it is to qualify. The lower the cost of the mortgage, the more house you can afford to buy. How can you...
How Do I Get Preapproved for a Mortgage?How Do I Get Preapproved for a Mortgage? Years ago buyers didn't worry about financing their home purchase until after they found the home they wanted to buy. Once they had an accepted offer, they'd shop around for a week or so and then submit a loan application. The recent low inventory of homes for sale has made home buying highly...