There are several factors one must consider when deciding between getting a fixed rate mortgage and an adjustable rate mortgage. Who should get a fixed rate mortgage (or FRM)? An FRM is ideal for someone who needs the guarantee of payment stability that the fixed rate offers since the rate is "fixed," it will not increase and therefore you won't have to worry about your payments skyrocketing or putting an extra, unanticipated strain on your finances. That being said, FRM's usually have a hig.... Read More...

If you have large amounts of cash available, you may wish to consider purchasing a home with all cash. The best way to examine this situation is to look at it like an investment. However, the investment is not the house you would enjoy any appreciation of the house's value whether you obtained a mortgage or used cash. The investment is in the mortgage you would be escaping if you paid for your house with all cash. If the house you wish to purchase is priced at $500,000 and you have that amo.... Read More...

Mortgage "points," a payment made to the lender upon closing the loan, is fairly common among US mortgages. Each "point" is equal to one percent of the total loan amount, and generally the more points you pay, the lower your interest rate will be (and vice versa: the fewer points you pay, the higher your rate). Another possibility is that of "negative points," in which the lender actually pays you a percentage of the total loan amount upon closing the loan. For example, in a traditional loan of .... Read More...

Manufactured homes (also known as prefabricated housing) are residences that are built entirely at a factory and then transported to the site where they will be inhabited. Though these homes are almost completely stationary, they are still sometimes referred to as "mobile homes." Because of this and other negative stereotypes, it is often impossible to obtain a mainstream mortgage to finance a purchase of a manufactured or prefab house. Lenders have a variety of reasons why they choose to not fi.... Read More...

When taking a mortgage, you must pay back to the lender not only the money directly borrowed, but also interest and other fees this is known as the "cost of credit," just another way of saying "the cost of borrowing money." This seems like a simple concept, but is often confusing and convoluted when borrowers actually need to shop for a mortgage. This is because there are so many potential fees and other costs that could apply to any specific mortgage, so comparing them directly is nearly i.... Read More...

The lock period is the period during which the lender guarantees the rate and points associated with the mortgage. If the lock period is 30 days, at 3 points and 5.5%, the lender is required to make the loan at that price any time within the 30 days. After that, the lock period may be extended for a small fee if rates haven't raised, or if they have, the new lock period will include a new, higher rate. If you have some difficulty qualifying at today's rates, you will want to lock in a mortgage a.... Read More...

Sometimes the prospect of purchasing a house can be extremely intimidating. Potential buyers often overlook several options that can ease the process of home purchasing. One of these options is the "rent-to-own" alternative. In a rent-to-own situation, the buyer signs a contract which is a mixture of lease and an option to buy the house within a certain period of time. Then, the buyer lives in the house and pays rent with an additional rent premium that will be credited to the purchase price if .... Read More...

Nobody truly looks forward to acquiring a mortgage. Besides the cost, there are other hassles that can be frustrating. One of these annoyances is all of the paperwork that must be obtained, given to the lender, processed, etc. For many people, this is the worst part about getting a mortgage, while other individuals may not be bothered by it. That being said, most lenders offer a plethora of documentation options. These options range from "Full Documentation" to "No Documentation" AKA "no-doc" mo.... Read More...