What's Your Mortgage Compliment? Avoid Extra Fees By A Person's Rating

What's Your Mortgage Compliment? Avoid Extra Fees By A Person's Rating

Everyone understands the concept of paying rent, so to begin with a great opening question to our real estate student is, "How would you like to collect that rent as opposed to pay it!" Naturally this question gets their attention and we can begin to open the door of enlightenment. I like to use the duplex example to illustrate the two homes under one roof concept. Some people are unfamiliar with what exactly a duplex is and how it works, so I simply state that quite often you find duplexes composed of one building that has two bedrooms and one bath on each side, all under one roof, some larger, some smaller.

For a larger home, jumbo mortgages may be just about the only option you have, but there are still ways around it if the home is not priced too high. Some companies offer a solution in the form of a package mortgage deal - getting a first and second mortgage at the same time. By financing the first mortgage at 80%, you can then get financing on a second mortgage to cover the balance. By going this route, you may also be able to avoid having to pay for private mortgage insurance, too.

You can do what you want with your equity. This is the money that you take and consolidate your bills with. It has much lower interest than a personal loan, which is why it is a good alternative. It also has a much lower interest rate than a credit card, too, and gives you a long time to pay it back.

Since it is a list of those fees and closing costs associated with the loan you have applied for, you can now use this document to compare one lender with another. Its like you plan to have a repair done to your car. You get a couple of estimates to get a idea of the costs and can make a decision as to which repair man you want to work with. This document gives you approximately the same thing. Only its those costs associated with getting a mortgage. Some of the fees are associated with the closing costs you will have when you buy that home.

One way around mortgage insurance is to take out what is called a piggy back loan. A piggy back loan is taking out a first mortgage for 80% of the value, in the case of the example $80,000 and a second mortgage for the remaining 20% which would equal $20,000. You are now in a situation where you have a 100% financing situation but are not open to mortgage insurance. Generally the interest rate on a second mortgage is higher than the interest rate on the first mortgage, but the difference is less expensive than what the mortgage insurance would cost.

bank mortgage insurance The main idea of the HUD reverse mortgages is to arrange cash money to the seniors, who cannot either take more loan or to earn more. The only source of the extra income are their home equities. These people are called cash poor, but equity rich.

There are other good benefits to consider too. For example, in most of these cases the interest paid on such a type of loan is made tax deductible. In actual fact, in most of these cases you will find the interest being 100% deductible. The only disadvantage is that the total loan amount of both mortgages must not be more than the value of the home.

Including your taxes and insurance in your monthly mortgage payment is known as "escrowing." Lenders take one twelfth of your annual tax and insurance bill, add it on top of your monthly payment, and then when they are due, they pay them for you.

Take advantage of free lock-ins, preferably with a minimum of 60 days. Usually, it can take more or less forty-five days from the day of application to close. But there are times when two-month delays can occur, and even more! So look for lenders who are willing to offer you a free 60-day lock-in. But when it comes to mortgage refinance, you have to be cautious and ask all the right questions. You may be promised a free lock-in, but your loan officer might charge you a fee or a very high price for lock-in protection.