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  • 1. What are some things that I should consider when shopping for a mortgage? Views: 25
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    Terms of Use Table of Contents 1. Obtain information from several lenders 2. Obtain all important cost information 3. Obtain the best deal that you can 4. Remember: Shop, compare, negotiate 5. Fair lending is required by law 6. Credit problems? 7. Glossary 1. Obtain Information from Several Lenders Home loans are available from several types of lenders-- thrift institutions , commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you sh  More...
  • 2. What closing costs are associated with FHA loans? Views: 24
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    Terms of Use: Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan. The FHA requires a single, up-front mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium, paid mont  More...
  • 3. How and when can I drop PMI? Views: 23
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    Terms of Use: Contact your lender directly to ensure that you are actually paying for PMI. If your principal balance is less than 80% of your last appraised value, request that your lender stop charging you for PMI. If your principal balance is more than 80% of your last appraised value, but you know that your home's current market value would cause you to be below the 80% threshold, get an appraisal and present the appraisal to your lender. Be aware that your lender does not have a choice   More...
  • 4. What information should I be looking for on my credit report and how do I correct any errors? Views: 22
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    Terms of Use: Your credit report is an important piece of your credit history and should be reviewed in detail. It's especially important to check your credit report (which details how well you pay your loans, bills and credit card purchases) before applying for a loan or other credit, to know where you stand. Check the accuracy of the following information on your credit report: Name. Ensure the spelling of your name is accurate. Address. Ensure your current and previous addresses are accurat  More...
  • 5. Why might I consider getting an FHA loan rather than a conventional mortgage? Views: 21
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    Terms of Use: The major reason to consider getting an FHA loan is because an FHA loan has less stringent criteria than those used by banks and credit unions for qualifying you for a conventional mortgage. As such, an FHA loan may provide an ideal choice for first-time home owners or individuals rebuilding their credit. For instance, the FHA allows you to use 31% of your income towards housing costs and 43% towards housing expenses and other long-term debt. With a conventional loan, this qualifyi  More...
  • 6. What is HUD and how does HUD help homebuyers and homeowners? Views: 19
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    Terms of Use: The U.S. Department of Housing and Urban Development (HUD) was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD's primary missions is to create a suitable living environment for all Americans by developing and improving the country's communities and enforcing fair housing laws. HUD helps people by administering a variety of programs that develop and support affordable housing. Specifically, HUD plays a large role in h  More...
  • 7. How can an energy efficient mortgage (EEM) save me money on a FHA Loan? Views: 19
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    Terms of Use: The Energy Efficient Mortgage allows a homebuyer to save future money on utility bills. This is done by financing the cost of adding energy-efficiency features to a new or existing home as part of an FHA-insured home purchase. Basic guidelines for EEMs are as follows: The cost of improvements must be determined by a Home Energy Rating System or by an energy consultant. This cost must be less than the anticipated savings from the improvements. One- and two-unit new or existing h  More...
  • 8. What is loan-to-value (LTV) and how does it impact the amount I can borrow? Views: 19
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    Terms of Use: The LTV ratio is the amount of money you borrow compared with the lower of the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: with a 95% LTV loan on a home priced at $50,000, you could borrow up to $47,500 (95% of $50,000), and would have to pay $2,500 as a down payment. The LTV ratio reflects the amount of equity borrowers have in their homes. The higher the LTV ratio, the less cash homebuyers are required to pay out o  More...
  • 9. What is RESPA and how does it protect me so that I am fully informed and treated fairly when going through the mortgage process? Views: 18
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    Terms of Use: RESPA stands for Real Estate Settlement Procedures Act. It requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions. RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices, and business relationships between closing service providers and other parties to the transaction. For more information visit the RESPA  More...
  • 10. What are two primary types of mortgages? Views: 18
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    Terms of Use: There are two primary types of mortgages: fixed and adjustable. Fixed-Rate Mortgage This is the plain-vanilla loan that most people think of when considering a mortgage. The fixed rate mortgage is an extremely stable choice. With this type of mortgage you pay a certain interest rate over the life of the mortgage. You are protected from rising interest rates and it makes budgeting for the future very easy. With a fixed-rate mortgage, your monthly payment will remain the sa  More...
All information provided through this site is intended to be accurate. However, there may be inaccuracies from time to time which we will make every attempt to correct immediately. Information provided is intended to assist you in making decisions and does not eliminate the need to discuss your particular circumstances with a qualified professional.

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