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This one is kind of sticky. Most underwriting systems are automated and look at all of the compensating factors, such as loan to value , debt to income , and cash reserves to account for a credit score issue. If you are trying to finance/refinance a higher risk loan (high loan to value, no reserves, high debt to income) then your rate will probably
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This is a great quesiton. It really depends on the purchase price you paid for the home and what the market around you is currently supporting. I would suggest getting a local appraiser to pull comparable sales in your neighborhood and see if there is a difference between what they come back with and what you owe against the home. If there is a positive
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Your minimum payment is only simple interest, but like most loans you can pay additional towards the principal balance with your monthly statement. As a side note, in doing this the advantage of an interest only line of credit is that your next months minimum payment will go down. For example, if you have a $25,000 line of credit at Prime -1 (currently
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This is a great question in a declining/stagnate real estate market. The answer to this question is the majority of reverse mortgage providers /your next of kin will have the risk of future value problems. Your loan is set up off of todays market value. If you close on a lump sum payment or a set up an annuitized payment and eventually the home is not