Things that You Need to Know before Financing Your Home

Frequent Asking Questions:

What are Points? A. There are several types of mortgage related costs called "points" and their definitions and purposes vary. Generally, points are costs that must be paid to a lender in order to receive mortgage financing under specified terms. One point means 1% of the loan amount. 1% Disount point means, it will cost you 1% of the loan amount to buy the rate down by mostly .25% ( 1/4 of a rate ). 1 point origination fee means, it will cost you 1% of the loan amount by a lender or a broker to do the loan for you.

What does it mean to "lock" the interest rate? A. Due to interest rate movements, mortgage rates can change between the day you apply and the day you close. To protect against uncertainty, a lender can " lock-in " and gurantee you or 30, 60, 90, or 120 days. The longer the days are the higher the rate will be.

What is the lowest down payment I can use or a down payment on my home purchase? A. A 20% down payment used to be a standard, and most lenders today allow the buyer to put down as little as 5% down, or $5,000 on $100,000 loan. In fact, over 75% o the borrowers are now putting 0% down payment. If you put 20% down, then you will not pay PMI ( private mortgage insurance ) monthly to insure the loan for the lender. However, if you have a credit score below 620 and aquire a sub prime loan ( higher rate ), you will not pay PMI. PMI is only applied on prime loans ( prime rates ) with less than 20% down payment. The more down payment you put, the less will the monthly payment on the mortgage.

George Tesfa. Sr. Loan Officer
American Mortgage
http://www.Amerimort.com
http://www.CashMyEquity.com

In The News:


pen paper and inkwell


cat break through


Benefits of a Remortgage

There are many benefits in choosing a remortgage, some of... Read More

Uk House Price Increases Take A Summer Holiday

Property website Rightmove has released its latest house price index... Read More

The Best Tactics for Getting a Quick Homeowner Loan

Trying to find a quick homeowner loan can seem difficult... Read More

Refinancing Your Home Mortgage - Get Up To 125% Cash From Your Homes Value

With the low interest rates being offered by lenders today,... Read More

When Not To Agree To A Home Equity Loan

Before you borrow money on your home's equity, think twice... Read More

Revive Mortgage Tenure With Extend Loan Term Remortgage

You are comfortably wedged in a mortgage deal, paying the... Read More

Fees Paid To Brokers By Mortgage Lenders Are Far Too High

Procuration fees paid by some sub-prime lenders are too high.Fact.There... Read More

The Worst Way to Shop for a Home Mortgage

You've found a house that is perfect for you. It... Read More

Bad Credit Loans Authenticate What Is Positive About Bad Credit

This might not be the front page news but it... Read More

Obtaining a Home Equity Loan Online

Private lenders, banks, and mortgage companies are all setting up... Read More

Home Loans ? Would You Buy a Home Without an Inspection?

The housing market has exploded, with home prices rising beyond... Read More

Home Mortgage Rate Shopping - Why Some Shoppers Give Up And Others Dont

About 29% of current homeowners and a much larger percent... Read More

Guide to Remortgages

Here is a useful guide to remortgages. What is a... Read More

5 Ways to Use Your Home Equity Line of Credit

Your home is a source of pride and accomplishment. Did... Read More

Home Loans and Mortgages ? Tips to Avoid Foreclosure

Today's real estate market is a volatile one; prices are... Read More

Home Mortgages: Up, Up and Away!

Refinance NOW-before it's too lateIf you haven't found the time... Read More

Are Biweekly Mortgages Really Worthwhile?

You may have heard people, especially mortgage lenders, extolling the... Read More

Refinancing Your Home Mortgage Loan

You're considering refinancing your home mortgage loan to save money.... Read More

Online Mortgages in 5 Easy Steps!

We're all entitled to the opportunities and benefits of home... Read More

FHA Home Mortgage Purchase or Refinance Loan - Why You Might Consider Getting an FHA Loan

Most borrowers have heard of FHA home loans. They are... Read More

Mortgage Refinancing - Does Size Matter After All?

Hopefully your ego has never had to experience the words,... Read More

Five Things Never To Tell Your Mortgage Lender When Facing Foreclosure

1. Never discuss your household finances over the phone with... Read More

Reverse Mortgages ? A Tax Free Income For Senior Citizens

I fully realize if it sounds too good to be... Read More

Home Loans: To Substantiate Financial Possibilities On Your Land

Availability of Home loans is in full bloom. They are... Read More

Where To Find The Best Rates For Your Mortgage?

As with all of my articles this will be based... Read More

Finding the Online Homeowner Loans You Want

Online homeowner loans have been growing in popularity in recent... Read More

Key an Eye on Your Mortgage Payments

In previous decades, when a borrower missed a payment on... Read More

Flexible Mortgages - Offering Relief from the Fixed Mortgage

A pension mortgage may seem lucrative at the first sight.... Read More

Stated Income Mortgage Loan - Get Approved Online

A stated income or no doc mortgage loan allows individuals... Read More

New Home Loan - Understand The Various Types Of Mortgage Lenders

So, you've decided to buy a house, and you're ready... Read More

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later

There are great mortgage loans for people with poor credit,... Read More

Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refi is more than just... Read More

Refinancing Your Mortgage Can Open Up A Lot Of Options For You And Your Family

It can happen to anyone, the roof is leaking, the... Read More