free-help-mortgage-loans

2008年12月14日星期日

Mortgage Loan Types

Mortgage Loan Types
Types of Mortgage Loan Programs
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Types of Mortgage Loans

I was a little girl, there were three types of mortgages available to a home buyer. Buyers could get a fixed-rate conventional mortgage, an FHA loan or a VA loan. Times have definitely changed. Now there are a dizzying array of mortgage loan types available -- as the saying goes: more mortgage loan types than you can shake a stick at!

Popular Types of Mortgage Loan Programs

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Specialty Mortgage Loan Types Streamlined-K Mortgage Loans Like the 203K loan program, FHA has another program that provides funds to a borrower to fix-up a home by rolling the funds into one loan. The dollar limits for repair work are lower on a Streamlined-K loan, but it requires less paperwork and is easier to obtain than a 203K. Bridge / Swing Loans These types of mortgage loans are used when a seller has put a home on the market -- but it has not yet sold -- and the seller wants to borrow equity to buy another home. The seller's existing home is used as security for a bridge (also called swing) loan. Equity Mortgage Loan Types Equity loans are second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed. Reverse Mortgages Reverse mortgage are available to any person over the age of 62 who has enough equity. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for as long as the borrower resides in the home. The interest rate can be fixed or adjustable.

Combo / Piggyback Mortgage Loan TypesThis type of
mortgage financing consists of two loans: a first mortgage and a second
mortgage. The mortgages can be adjustable-rate mortgages or fixed-rate or a
combination of the two. Borrowers take out two loans when the down payment is
less than 20% to avoid paying private mortgage insurance.Adjustable-Rate
Mortgage TypesAdjustable-rate mortgages (ARMs) come in many flavors, colors and
sizes. The interest rate fluctuates. It can move up or down monthly,
semi-annually, annually or remain fixed for a period of time before it adjusts.
Mortgage BuydownsBorrowers who want to pay a lower interest rate initially often
opt for mortgage buydowns. The interest rate is reduced because fees are paid to
lower the rate, which is why it's called a buydown. Buyers, sellers or lenders
can buy down the interest rate for the borrower.

Fixed-Rate Mortgage TypesThis is the granddaddy of them all. Now you can choose from 10-year, 15-year, 20-year-, 30-year, 40-year and even 50-year fixed-rate mortgages, all of which are completely amortized.FHA LoansFHA mortgage loan types are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.VA LoansThis type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Veterans Administration, but funded by a conventional lender.

Equity Mortgage Loan TypesEquity loans are second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed.
Reverse MortgagesReverse mortgage are available to any person over the age of 62 who has enough equity. Instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for as long as the borrower resides in the home. The interest rate can be fixed or adjustable.

free-help-mortgage-loans

2008年12月14日星期日

Mortgage Loan Types

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