The idea here is that a borrower with smaller monthly mortgage payments is a less risky borrower, which is good for the FHA. So even if it sounds risky to give a homeowner a new mortgage with very little paperwork, they’re actually just being given a more affordable home loan when all ...
An FHA loan is a mortgage insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development. With a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, FHA loans are often a good fit for first-time home buyers...
FHA loans are among the most popular mortgage programs in America because FHA loan requirements are more accommodating that other loan types.
While a fixed-rate mortgage’s monthly payment amount stays the same, the breakdown of where those funds go — how much is paying down the principal versus how much is paying interest charges — varies based on the loan’samortization schedule. At first, it’s going mostly towards interest...
An energy-efficient mortgage — also known as an EEM or a green mortgage — is a type of loan intended to help qualified borrowers fund energy-saving home projects and upgrades. EEMs also can be used to buy an existing home with eco-friendly features. ...
“But what is a mortgage escrow account? What’s the purpose of it when owning a home?,” you may be thinking to yourself. Great questions. Before we get into what a mortgage escrow account is let’s look at what escrow, in general, is… ...
FHA VA USDA Other Items to Consider Before Taking out a Mortgage Loan Next Steps to Take Before you Apply Estimated Reading Time: 20 Minutes What is a Mortgage Home Loan? A mortgage is a type of loan that is used to finance the purchase of a home. When you take out a mortgage, you...
This is why it’s helpful tocompare mortgage brokers too. Don’t jut stop at one, just like you wouldn’t get a single mortgage quote. What they charge can vary greatly, so make sure you do your homework before agreeing to work with a mortgage broker. And ask what they charge before...
Talk to a few mortgage refinance lenders to see what, if anything, you can do to refi your upside-down mortgage. If your original loan is an FHA loan, you might be able to qualify for an FHA streamline refinance. Unfortunately, Home Affordable Refinancing Program (HARP) loans were sunset ...
What is the biggest problem with the mortgage electronic registration system? Although MERS can streamline the loan transfer process, it can make it difficult to see who actually owns the loan. How do I get access to MERS? Your mortgage lender should provide the mortgage identification number for...