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An FHA loan is a loan that is partially guaranteed by the Government. It offers less of a down payment and usually a slightly higher interest rate than normal prime loans. It is normally used by first time buyers. FHA loans have mortgage insurance in most cases that can also increase your payment. Underwriting guidelines are less stringent on FHA loans
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I can think of very few disadvantages to making principal only payments on your mortgage if you can afford to do so. You might want to take a few extra steps to ensure they are posted properly to your account. If you can, I suggest you go to your bank personally to make the principal only payment. That way you can make sure it is applied properly. If
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A fixed rate mortgage has an interest rate that is locked throughout the life of the loan. An adjustable rate mortgage has a rate that can either increase or decrease throughout the life of the loan. There is also a product called the Option ARM that was very popular for some time, but , has decreased in popularity due to negative press and overuse
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The answer is, it isn't. There are many factors that are considered in the loan approval process and income is not necessarily the most important. These factors include but are not limited to: The Loan amount as compared to the value of your home purchase. The length of time on your job. The type of property you are buying. The use of the property once
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APR is a federally engineered term that is very confusing to most customers. Simply put, APR is an equation that shows the true cost of a mortgage including costs associated with the loan itself. If you notice on loan documents, when an interest rate is quoted, it will show APR usually below. In fact, it is mandated it be shown. For example, if a bank
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It depends on the type of mortgage. It is customary for the borrower to pay closing cost for a purchase mortgage. However, it is also customary for closing costs to be included for the purpose of a refinance. Some purchase loans do not require closing costs to be paid by the consumer. They can, in fact, be paid by the seller with seller assistance,