Maybe you do not know that...

Maybe you do not know that... A fixed rate loan is one whose interest rate never changes. meaning the principal and interest payment never changes, either. Each month, the homeowner pays decreasing amounts of interest and increasing amounts of principal while the payment stays constant. This process is called “amortization.” When your loan first starts out, you pay mostly interest. Toward the end of your loan, the majority of your payments go toward principal. This is because interest is due only on what is currently owed. So, by the end, you owe next to nothing in interest. The most popular form of fixed-interest home financing is the 30-year fixed mortgage, which spreads the principal repayment over a long period of time, making even very expensive homes affordable on a monthly basis. There are other fixed rate options available as well, including the popular 15-year fixed rate. The ever-popular fixed rate mortgage still dominates the market A fixed rate ...

Maybe you do not know that... No Down Payment Mortgage A no down payment mortgage allows first-time home buyers and repeat home buyers to purchase property with no money required at closing except standard closing costs. Other options, including the FHA loan, the HomeReady™ mortgage and the Conventional 97 loan offer low down payment options with a little as 3% down. Mortgage insurance premiums typically accompany low and no down payment mortgages, but not always. Is A No Down Payment Mortgage Right For You? It’s a terrific time to buy a home. Sales are rising, supply is dropping, and prices have increased in many cities and neighborhoods. Compared to next year, today’s market may look like a bargain. Furthermore, mortgage rates are still low. Rates for 30-year loans, 15-year loans, and 5-year ARMs are historically cheap, which has lowered the monthly cost of owning a home. The Down Payment Hurdle However, it’s not the monthly payment that ...

Maybe you do not know that... What Is A VA Mortgage? In 1944, as part of the G.I. Bill, the Department of Veterans Affairs launched a mortgage program to help veterans returning from war to re-assimilate into communities. Today, more than 70 years later, the VA Loan Guaranty program remains an important part of the VA Benefits package available to today’s military personnel. Offering the option of 100% financing and never any mortgage insurance, VA loans are among the least expensive ways to purchase a home with a low- or zero-down payment. Furthermore, because VA loans are guaranteed by the government, lenders are willing to offer them at lower rates. Military borrowers pay less for their loans. So, who exactly is eligible for the VA Loan Guaranty program? Not everyone, but a lot more people than might be obvious. Here’s an overview of the VA home loan’s eligibility standards. VA Loan Eligibility For Veterans Most veterans must complete a minimum term o...