Tag Archives: loan

an fha loan form

Interested In An FHA Loan? Here’s All You Need To Know

an fha loan formFHA loans are one of the most popular loan products today. They are very attractive to home loan borrowers, especially those who will be buying a house for the first time because the requirements are much lower compared to private lenders.

In case the borrower defaults, the FHA loan lender like Primary Residential Mortgage, Inc. can get back the money from the Federal Housing Administration. Before rushing to get an FHA loan, keep these facts in mind when applying for one.

Low Credit Score and Down Payment Requirement

A typical private lender will first check your credit rating. It’s also the same with FHA loans, but you only need a minimum credit score of 580 to qualify. Also, you need to make 3.5 percent down payment. Those with credit scores below 580 but not lower than 500 can still be eligible, but this time, the down payment requirement is 10 percent. There are cases, however, where an applicant with a credit score of below 500 can get an FHA loan.

FHA is the Insurer, Not the Lender

Some people have the misconception that the FHA itself is the lender. The government agency only guarantees that it will pay the loan in case of default. This is why you need to make sure that the lender you are dealing with is FHA approved. The rates offered by these FHA-approved lenders are also not the same.

Pay Two Mortgage Insurance

On all FHA loans you pay, not one, but two mortgage insurance premiums. The first premium is equivalent to 1.75 percent of the loan. Pay this premium once you get the loan. If it’s possible, you can include this premium to the FHA loan.

The other one is the annual premium, but you pay for it monthly. The rate will depend on the size of the loan, the length of the loan, and the initial loan-to-value ratio.

FHA Loan For Home Repairs

Homeowners in need of cash for repairs can apply for a special loan known as 203(k). The loan amount you can get is not based on your home’s current appraised value. Instead, it’s based on the expected value after you have made the repairs.

Financial Relief Option

FHA loan borrowers who are undergoing financial hardships can apply for relief. If approved, lenders then can offer to lower the interest rate or extending the payback period. They may even allow deferring part of the loan without interest.

Possible Coverage of Closing Costs

Borrowers can include the closing costs in their loan application. The lender charges typically a higher interest rate if you choose this option. There are instances though that a home seller or builder will shoulder the closing costs to finalize the deal.

What Amount of Reverse Mortgage Can You Get?

reverse mortgageThere are advantages of owning a home than just saving the rent you were paying. You can take a loan against your home to undertake your projects. Reverse mortgage in Missouri is a loan that uses your home equity to give you money.

Although it is not the cheapest method to borrow, it’s worth comparing other options before getting one. The duration of the loan depends on certain calculations, and the amount of money that you can get depends on various factors.

Four of these determinant factors include:

Equity

The more the home equity, the higher amount of loan money you can get. It works best for some borrowers who have been paying down their loan for many years, and their current mortgage is almost paid.

Age

Older borrowers are likely to get a higher loan amount compared to the young. A younger spouse will be required to vacate should the older borrower die, and the younger one is not in the loan processing documents. Your choice to acquire the loan is as vital too. You can select on various payouts.

Time-To Time Payments

You can prefer to get regular payments, say monthly. Such payments would last for good or for a specified time like ten years. If you are required to pay the loan because all borrowers have left, the payments are fully paid.

About lifetime payments, you can end up getting even more than expected if you live longer.

Line of Credit

You can decide on taking a line of credit that will allow you to get funds when you need them. The benefit is that you only pay interest on money you have indeed borrowed, as it increases your credit line with time.

You now know of an alternative way of getting money as a homeowner. Consult a reverse mortgage lender in Missouri with information concerning the above factors and increase your chances of securing a loan.

Mortgage Application: Don’t Forget Fees and Penalties

Loan on the monitor of a macbookWhen applying for a loan, most borrowers tend to focus more on their down payment, interest rates, and monthly payments. Many fail to evaluate hidden fees like closing costs and prepayment penalties. If you’re applying for a mortgage and don’t think about them, you may set up yourself for extra expenses before you can finally own your home.

Avoid Surprises Related to Closing Fees

Whether you’re purchasing a home or refinancing a loan, you will need to pay closing costs. A lender or mortgage company should give a Good Faith Estimate (GFE), which lists all related closing costs. Altius Mortgage Group and other mortgage companies in Utah note that these differ based on the type of property, its location, and your loan type. In most cases, buyers pay about 2% to 5% of home’s value in closing fees.

It’s good to know that some fees in the closing costs are unnecessary and negotiable. You can ask your lender to have some of those fees removed or ask them to explain why they are necessary. There is also the no-closing cost mortgage, which may cost you more in the long run. This is because the lender may charge you with a higher rate or include the closing fees into the total loan amount.

Extra Payments and Penalties

Some loans carry prepayment penalties when you may extra mortgage payments. Note that not all loans have this, so it means that you may have agreed on this when you close the purchase. If you’re not sure, it’s best to check with your lender. The penalties could apply if you pay the entire balance (by selling or refinancing) or pay a large amount all at once.

If you, for instance, received an inheritance or get a promotion, making extra payments can reduce financial burden in the long. This also reduces your total payment and helps build equity faster. Before agreeing to a loan, you may want to ask your lender to have this removed if possible. Note that paying extra can also lower the number of interests paid.

Buying a house is a financial decision, so you shouldn’t overlook other fees that can affect your payment in the future. Talk to a reliable lender to learn more about your mortgage options and all other associated fees.

Title Loan In Orem

Title Loan In Orem: Why You Will Love It

Title Loan In OremIt is sad how sometimes you are embarrassed because of financial constraints. In such scenarios, it’s good to note that it doesn’t cost much to get assistance from the best loan facilities in Orem.

In terms of time and bottlenecks, access to loan facilities can sometimes be frustrating. Sometimes you find yourself stuck in a queue to get a loan, yet time is of essence. Honestly, you could be spending this time doing something more productive. However, this would be a good opportunity to reflect on how a title loan in Orem could be helpful. In relation to that, here’s how you can you easily avail of one.

  1. Application

Ever wondered why most keep silent with their problems? Simple, people are afraid to take a risk. Loans sound scary when it is a first time. However, life can be tough for the faint hearted. The first step is to make or submit a formal application for the title loan. Then wait for the normal procedures that will not take most of your time.

  1. Easy and quick processing

What makes the loan facilities of Utah Money Center interesting is the speed at which a request is processed. If you own a car, you can get a quick title loan. When the loan request is approved, you get the speedy cash you need. Remember that the vehicle serves only as collateral and you get instant cash!

  1. A lifesaver

Getting a title loan without much fuss has made life easier. Loans are here with us and do not seem to go away anytime soon. A loan should lead the way out of problems, embrace them!

If you are a person who has endured tough financial times, this is something that you should try. A title loan in orem might just be what you are looking for.