When you take out a mortgage, the bank as the lender takes a risk. The risks assumed by the lender are expressed in the form of interest rates, and the costs you must pay for obtaining the loan. The calculation of your mortgage interest rate depends on the amount of risk taken by your lender. The interest rate determined for your mortgage is the … [Read more...]
FHA Loan Requirements – What You Need To Know
The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes, as well as FHA approved condominiums, in the United States and its territories. FHA insured loans require mortgage insurance to protect lenders against losses that result … [Read more...]
How to Compare Home Loan Rates
Finding the lowest-cost home loan can be confusing. But, it has gotten easier thanks to the standardized good faith estimate, or GFE, that the U.S. Department of Housing and Urban Development implemented in January. The new GFE clearly specifies your interest rate, the number of points you're paying for such rate, and lays out the terms of the … [Read more...]
Home Loans for First Time Buyers in San Diego
Many home loan programs have been specifically created for first time home buyers. These loans feature low down payments and approval guidelines that make it easier to qualify. Some of the more popular first time homebuyer programs are FHA and VA. FHA is a loan that comes from the Federal Housing Administration. These loans are insured loans made … [Read more...]
Private Mortgage Insurance (PMI) in California
PMI, or Private Mortgage Insurance is a policy provided by private mortgage insurers to protect lenders against loss. If you are making a down payment of less than 20 percent, you will most likely be required to get PMI. This guarantees that the lender will receive 80 percent of the loan, if you happen to default. The insurance premium amount … [Read more...]
Using a FHA Mortgage Calculator with PMI and Taxes
It is soooo important to know that when shopping for a mortgage using a mortgage calculator, that the calculations are accurate. I recently had a borrower coming up with different payment options that never seemed to coincide with the figures that I used, even if we used the same rate. The reason being is that when he was punching in the numbers, … [Read more...]
