The answer in short – is never. At no time on a 15 year mortgage does the whole entire payment go solely to principle. Interest is paid right up through the loan payoff at 180 months. Unlike a 30 year mortgage, with amortization based on 360 month, a 15 year mortgage is based on amortization…
Yes under the FHA Second Chance Program. The program allows a home buyer to repurchase just 12 months after a foreclosure or short sale. In order to qualify, there must be a documentable loss of income for a minimum of six months and/or supporting documentation showing a one time unforeseen economic hardship that resulted in…
Calculating monthly mortgage insurance on a conventional loan is best handled directly with the mortgage company whom you’re hiring to do your purchase preapproval and/or refinance loan with. However, to have a general understanding of how mortgage insurance works, know that it is required for any loan with less than 20% down. Plan on on…
This is the mother lode question on every consumer’s mind seeking mortgage loan financing. Everybody wants to get the lowest and best possible interest rate for their mortgage right? Obviously, the lowest possible interest rate and least possible cost is ideal. The cold reality is that after you close escrow rates can drop below what…
Yes, but not in the way most home buyers would think. Let’s say for example you agree to purchase a house for $450,000 and your putting down 20%, $90,000 so the amount you’re looking to finances $360,000. There is not a way to simply increase the loan amount for covering closing costs. Seller Credit-this can…
In most cases the closing costs are not actually higher, although they appear that way due to accounting for reoccurring costs such as mortgage interest, property taxes and fire insurance. Before we dive into the nuts and bolts let’s go over closing costs…. Re-occurring Vs. Non-reoccuring Closing Costs Recurring Closing Costs: are the carrying costs…
Mortgage lenders are under incredibly tight protection laws from the Consumer Financial Protection Bureau, CFPB. As a result, lenders must send disclosures every single time there is a change to the loan amount, loan program, fees, apr, any aspect of the payment including principal and interest, taxes, insurance or mortgage insurance, think of it like…
Let’s say, you want to put more down when buying house or your in the process of refinancing and your home appraisal comes in lower. In any case, an event transpires during the loan transaction that causes you to want to switch loan types, can be anything from moving from an FHA Loan, to a…