A Credible Source a Land Loan Adjustable Mortgage Adjustable Rate Mortgage Adjustable Rate Mortgages Advantages Amenities Anatomy Mortgage Apply For a Home Loan Apply For a Loan Online Apply For Loan Online Applying home loan Approval Approval Home Loan ARM Arm Mortgage ARM program Avoidable Mistakes Bad Credit Bad Credit Home Loan Bad Credit Home Loan Lender Bad Home Loans Balloon Mortgages bank Bank Housing Loan Bank of America Bankruptcy Barclays basics Mortgages Benefits of FHA Loans Best California Mortgage Rate Refinance Best Home Loan Best Home Loan Rates Best Mortgage Refinance Calculator Best Place To Refinance Your Home Broker Buying A Home Calculator Amortization Cargo Cash Out Mortgages Cash Real Estate Cash-out Mortgage Refis Cash-Out Refinance Cheapest Rate Home Loan Claim Tax Benefits Closing Closing Cost of Mortgages Closing Costs Attached Closing Costs For a House Company Compare Compare Home Loans Compare Lending Mortgage Compare Loan Control Costs Countrywide Countrywide Home Loans Credit Credit Check Credit Grade Credit Inquiries Credit Profile Credit Recommendations Credit Report credit score Credit Scores Home Loan Current Mortgage Lender Debt Consolidation Debt Consolidation Loans Debt Refinancing default Mortgage Different Types of Home Loans Direct Lenders vs. Brokers Disadvantages Down Payment Elderly Day-Care Services Embrace Home Loans FAQ's Cont'd FAQs Mortgage federal home loan FHA FHA appraisal FHA Home Loan Requirements FHA loan FHA Loans FHA Refinancing Programs Finance Agen financing FIND THE RIGHT LENDER Fixed Home Loan fixed interest rate loan Fixed Rate Mortgage Fixed Rate Mortgages Fixed-Rate Mortgage Fixed-Rate Mortgages For America Express Foreclosure Foreshadow Fort Wayne Home Loan Frequalify Home Loan Future Government Home Refinancing Great Migration Greensboro Home Loan HAMP Hard Money HDFC HELOC Helpful Hints Helpful Information Hme Loan Hom Loan Rate home Home Affordable Loan Home Affordable Refinance Program Rates Home Builders Home Buyer Home Buyers Home Buying Home Equity Home Equity Loans Home Equity Credit Line Home Equity Credit Lines Home Equity Line Home Equity Line Of Credit Tax Home Equity Lines of Credit home equity loan Home Equity Loan Basics Home Equity Loan Interest Home Equity Loan Rate Home Equity Loans Home Equity Loans With Bad Credit Home Equty Loan Home Improvement home loan Home Loan Application Home Loan Calculator Amortization Home Loan Eligibility Calculator Home Loan For Bad Credit Home Loan Improvement Home Loan Interest Rate Home Loan Investment Bank Home Loan Lines Of Credit Home Loan Modificatio Home Loan Modification Home Loan Modification Plan Home Loan Modification Programs Home Loan Mortgage Generic Home Loan Now home loan Online Home Loan Process Home Loan Programs Home Loan Rates Home Loan Repayment home loans Home loans mortgage generic Home Mortgage Refinance Home Mortgage Refinance Options Home Mortgages Home Owner Home Prices Home Purchase Home Refinancing Homeowners Homeowners Refinance Homes For Sale House Loan For Mortgage Housing Housing Collapse Housing Counseling Housing Finance Agency How To Shop Low Rates IBISWorld Increasing Indian Bank Home Loan Influence Your Home Advantage Loan Cost insurance Interest Rate Interest Rates International Investing Requirements Investment Property Loan IRS Jumbo Loans Lawyer Lender Mortgage Private Lending Level Limit Limited Cash Out Mortgage lines of credit loan Loan Application Loan Calculator Loan Comparison Loan For Home Loan Modification Loan Process Loan Zone Loans Low Down Payment LowEnd Manufactured Home Loans Master Mistakes Mobile Home Loan Modification Modification Program Modification Program Process Morgage Mortgage Mortgage Application Mortgage Basics Mortgage Broker Mortgage Calculator Refinance Mortgage Calculator Refinance Breakeven Mortgage Calculators Mortgage Closing Statement Mortgage Companies mortgage compare interest rate Mortgage Financing Mortgage Insurance Mortgage Interest Rates mortgage lenders mortgage lending mortgage loan Mortgage Loan Debt Mortgage Loan Process Mortgage Loan Programs Mortgage Loan Programs Cont'd Mortgage Loan Refinance Mortgage Loan Refinances Mortgage Programs Mortgage Rates Mortgage Rates Refinance Mortgage Refinance Mortgage refinance home Mortgage Refinance Loan Mortgage Trends Mortgage Types Mortgages Mortgages Loan Mortgages Programs Moving Moving Tips Named Nationwide Personal Home Loans Negotiating No Credit Check Mortgage Loan No upfront Fee Online Loan Shopping Online Loan Shopping Tips Overcoming Partner Payment Payment Ease Program Personal Loans Physician Home Loan Pre-qualifying Price Property Appraisal Property Taxes Purchase A Residential Home Quick Rate Quotes Real Estate Real Estate Settlement Procedures Act Refi Refinance refinance home - refinance mortgage Refinance Home Loan Quotes refinance mortgage Refinance Mortgage Hurdles Refinance Mortgage Interest Rates Refinance Your Mortgage Online Refinancing Refinancing Equity Loans Refinancing Mobile Home Refinancing Mortgage Requirements RESPA Restructure Reverse Mortgage Rules Saving Money on Your Mortgage Scandal Second Home Owner secured loan Securing A Home Improvement Loan Sierra Home Loan Slowdown standards Success Take Over KPR 2018 Tax Benefits Tax Deductible Tax Law tighten Tips type of application fee Types UK Home Loans Unsecured USDA Home Loan VA home loan VA Home Loan Program VA Loan VA loan pre-approval VA mortgage checklist VA Mortgage Loan VA Streamline Loans Values Variable Home Loan Wells Fargo Wells Fargo Home Loan Modification Wells Fargo Home Loan Modification Tips World Bank Zero Balance Program

5. Mortgage Basics - Other Types of Mortgage Loans

Other Types of Mortgage Loans:

Fannie Mae and Freddie Mac are the two publicly chartered corporations that buy mortgage loans from the primary mortgage market, that is, the lenders who make the loans to you. They do this to boost home purchase and stimulate residential housing construction by purchasing loans from conventional lenders and selling them to private investors. Besides the standard fixed-rate and adjustable-rate mortgages, there are other types of mortgages available:

  •     Jumbo mortgages
  •     Hybrid mortgages
  •     Biweekly mortgages
  •     Assumable mortgages
  •     Seller financing

Jumbo Mortgages:
Loan limits are set by Fannie Mae and Freddie Mac, and are adjusted annually by Congress to reflect changes in prevailing price of average property. For example, the 2001 single-family loan limit is $275,000. Mortgages that exceed the maximum allowable loan amounts are considered jumbo loans, also known as nonconforming loans. These types of loan have a higher interest rate and generally require a larger down payment.

Hybrid Mortgages:
Hybrid mortgages combine elements from both a fixed-rate mortgage and an ARM. There are different types; some hybrid loans begin as a fixed-rate loan, where the initial rate is fixed for a period of three to ten years, after which the loan converts to an ARM, and adjusting every six to twelve months thereafter. Other types of hybrid loans may begin as a fixed-rate loan and then have a one-time adjustment, and remain at a fixed rate thereafter. At the adjustment date, there is no additional refinancing cost or need to re-qualify.

Still another example of a hybrid loan is the balloon mortgage. In this loan, the borrower makes initial payments at a lower fixed rate for a specified period of time, usually from three to ten years, after which the principal balance is due as a lump sum. Under certain conditions, a balloon mortgage can be converted to either a fixed-rate or adjustable-rate mortgage.

Biweekly Mortgages:
A biweekly mortgage is a fixed-rate loan in which payments are made every other week, instead of monthly. In this case, the monthly payment is divided in two and that amount is paid every other week. You are basically making 26 half-payments a year, the equivalent of 13 monthly payments, with the 13th monthly payment going entirely towards paying off your principle balance. If done correctly, this can dramatically shorten the life of your mortgage, taking years off the length of your loan.

Assumable Mortgages:
This is a transaction where the mortgage is transferred to the new buyer of a home. This could be advantageous for the buyer if the interest rate on the assumable mortgage is lower than the current market rate, and can help a seller to speed up the sale of a property. Generally, ARMs are assumable, and fixed-rate mortgages are not. When shopping for an ARM, be sure it is fully assumable an unlimited number of times with the same interest rate caps.

Seller Financing:
This is an agreement between the seller of a home and the new buyer. The buyer will make direct payments to the seller, thereby bypassing the bank or other mortgage lender. This type of financing often involves assumable mortgage.

Refinance Home Loan Mortgage Offers The Lowest Interest Rates, Home Loans And Refinancing. Mortgage And Home Loan Advisors Consult Home Owners And Home Buyers And The Financing Solution Best Suited to The Mortgage, Home Loan And Refinance Needs.

Posting Komentar

[blogger][facebook]

Author Name

Formulir Kontak

Nama

Email *

Pesan *

Diberdayakan oleh Blogger.