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Mortgages
Other basic but important terms to understand are:
- Principal is the amount borrowed (on which interest acts) which is repaid
monthly
- Amortization is the process of repaying the amount borrowed through monthly
payments of principal and interest.
- Negative amortization is when the monthly payment is not high to adequately
pay the loan off. In this case interest builds too quickly and the principal
grows instead of decreasing. This can occur because of lender scams or because
of monthly payment caps.
- Equity is the value of your house left over after subtracting the total
of your mortgage. If your house has a market value of $130,000 and a mortgage
of $100,000, the equity is $30,000.
- An index is used to determine the rate on an adjustable rate loan. For some
loans this rate may be the Prime Rate or the average rate of a one year Government
Treasury Security.
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Bad Credit Refinance
If interest rates have dropped considerably since you obtained your loan, refinancing now can help you lock in the current low rate. Also, if your loan term is too short or too long, refinancing can help you find the repayment period that suites you best. If the terms of your loan are not what you need, you do not have to suffer with it for the next ten to twenty years. Refinance and find the loan that you want.
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Home Equity
A home equity line of credit is like a home equity loan in that the house is used as collateral. However, home equity lines of credit allow borrowers to set up a credit line that can be used much like a credit card. During a period of time, usually five to ten years, the homeowner is able to take large or small amounts from the account until the drawing period ends or the amount of the loan is exhausted. This type of loan is an adjustable rate mortgage, which varies with the market.
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Land Loan
Land loans are consistently perceived to be of greater risks by lenders. The lenders require great detail about the proposed home that will be built because they want to be sure that the sale price of the home where it will be located isn’t less than the original loan amount. For this reason, lending institutions that are far away geographically from the land lot will often not make the loan on the basis of knowing very little about the property and the property values of the surrounding area.
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Mortgage Calculation
Use mortgage calculation to make sure that the loan you obtain is in action what it appears to be on paper. Use our mortgage calculator to research your terms or apply online to contact lenders about your new mortgage.
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Mortgages Online
Points equal up to 1% of your loan and are paid at the beginning of your loan. The more points paid, generally the lower the interest rate.
Find out more about the mortgage that would be perfect for you and your home. Apply online to contact up to four lenders.
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Reverse Mortgage
A reverse mortgage is unlike most other loans in that it does not require that an applicant meet certain credit and income criteria or start immediate monthly repayment schedules. Instead, a homeowner qualifies on the bases of the value of the home, as long as he or she is 62 years of age or older. If you are interested in a loan with no monthly payments, fill out our short form today.
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