mizz_cassie_cass asked:


I have a mortgage on my home right now but we want to relocate and buy a home for the around the same price. We have had our home for 4 years and never had a late payment. We do have less then perfect credit. How do we go about this? Would it be better to rent? sell?? And how easy would it to be approved for a second mortgage or a new mortgage??

Jessie

Jackie N asked:


My husband and I are considering taking out a small second (approx $10,000) on our condo to pay the 3% downpayment required for a second home. We plan on using the FHA loan. Are we able to do this? We live in California, and lending rules are becoming very strict. Thank you in advance.

Anne

N. Sai asked:


There are many options when it comes to home mortgage finance. The mortgage lender will explain in detail about the working of each and every program and get it in writing.

Some of them are listed under:

Conventional fixed rate 30 year home mortgage program:

This finance option is a very old one, but it is still popular among home mortgage finance options. The borrower is able to purchase the home and repay the loan with interest over a period of 30 years’ time. The interest rate of this loan is fixed and it remains the same from the commencement of the agreed period of time of the mortgage till the last repayment.

Conventional fixed interest rate home mortgage for 15 years:

This also works the same way as the 30-year fixed interest rate home mortgage, but the entire amount is to be repaid within 15 years’ time. This option can save significant amount as the bank usually gives a deduction of the interest rate by ¼ or ½ point.

Adjustable interest rate home mortgages:

This home mortgage is for 15 or 30 years’ time. This option might be very appealing as the interest rates are very low. But the catch is that the interest rate fluctuates along with the economy fluctuations. The interest rates get adjusted every year or every 5 years’ time. When the interest rate increases, it is obvious that the home mortgage amount to be paid also increases. Hence, this home mortgage option might not be the best choice if the person plans to stay in his home for some time.

Interest only home mortgages:

No matter how attractive and feasible this loan appears to be, it is never a good option. It means that only the interest has to be paid, while the principal amount will stay forever to be paid by the borrower, only at the end of the loan period, which will be obviously a heavy amount. Unfortunately, if the home equity had not been raised, or if the person could not afford to go for a new mortgage loan, then the borrower would be forced to sell the house or go for foreclosure. The borrower will be made desperate to sell the house.

Tips for improving the chances for people with bad credit in getting home mortgage loans:

A good real estate deal with the help of the mortgage broker having some equity during purchase increases the chances of getting home mortgage loan for people with bad credit.

Some lenders might qualify people with bad credit score with full finance, and the rate of interest might also be a bit lower if the borrower can make a down payment of even 3-five percent. It means it saves lot of money by making a down payment even if it is a small amount.

The best way is to do a little bit of research in the market to sort out the problem of getting home mortgage. Some brokers will have good relationships with mortgage lenders while others do not. So getting the view of multiple lenders will help to get a home mortgage loan at a good rate of interest. Online mortgage services make the application of the borrower reach several mortgage lenders and help in achieving the goal than any other means.



Marian

Auren W asked:


I refinanced 2 weeks before American Home Mortgage declared bankruptcy. They still owe me my escrow money (a new escrow account was created at closing with the new company). Is the escrow money legally mine and protected from the company’s bankruptcy, or can the company default on paying it back? Thanks!
The AHM mortgage was paid off and my new mortgage and new escrow are already in effect with my new company. The procedure was the AHM escrow was to be refunded to us and we already have a new escrow in place. While waiting for the AHM escrow to be refunded to us, AHM declared bankruptcy. Is the escrow money legally mine? Continuing to make payments is not the issue–we are already paying mortgage payments and already set up a new escrow with the new company.

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deedee asked:


I want to take advantage of the decline in intest rates by refinancing my mortgage. When I search online I find a lot of rates quoted for new loans but not much for refinancing. Is it safe to assume the refinancing rates will be similar to the new buyer’s rates (with the same terms and credit rating of course)? Thanks.

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