Sell Your Home

Category: Finance, Mortgages.

Your lender uses your home as security for your mortgage payments.

The process they use to take your home is called foreclosure. This means that if you do not make the payments, they can take your home. If you are behind on your payments, it is important that you act quickly to prevent foreclosure. Call your lender Most lenders do not want you to lose your home. What should I do if I am behind on my house payment? Tell them why you are behind on your payments.

Don t ignore letters from your lender Let them know you ve received their letters and that you want to work with them. Ask them to work with you to get your payments current. How your lender can help. What if my lender won t help? Your lender might accept a payment plan for the back payments or give you extra time to pay the loan. You still have options: Call another lender. Sell your home.

Ask if they will give you a new loan to pay off your existing mortgage. You might get enough money from the sale of your home to pay the loan off and even have money left over. Ask if filing for bankruptcy can help you keep your home. Talk to a lawyer. The foreclosure process. The Notice of Default tells you that you have not made your payments. Foreclosure begins when you get a Notice of Default in the mail.

It also tells you the amount you owe in missed payments and foreclosure fees. You can find the date the notice was recorded on the first page next to the words" recorded on. " If you pay the amount on the Notice of Default, the lender cannot sell your home. You have 3 months from the date the Notice of Default is recorded to pay the back payments and fees. When can they sell my home? Before they sell your home, your lender must mail you a Notice of Sale. If you don t pay the amount owed within 3 months, your lender can sell your home.

The Notice of Sale will include the date, and place your, time home is to be sold. How do I stop the sale of my home? The notice of sale must be mailed to you at least 20 days before the day they plan to sell your home. You can pay the amount due, up to 15, including fees days before the sale date. Once you pay, the lender must record a Notice of Rescission. If you wait until the last 5 days before the sale, you will have to pay the entire loan amount. This proves that that the sale has been cancelled.

Avoid people who promise to stop the foreclosure by having you transfer title of your property. Watch out for scams! Transferring ownership does not stop the foreclosure. Also, it will not keep the foreclosure from showing up on your credit report. You will still be responsible for the money you owe even if you no longer own the home.

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There are all kinds of reasons why you might fall behind in your mortgage payment- sickness, divorce, job loss, or a host of unforeseen circumstances that can have you facing foreclosure.

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A Biweekly Mortgage Payment Calculator will change the way you look at paying off your mortgage. To begin with, by the time you ve paid your mortgage off you will have paid roughly 3 times the amount of the loan itself.

The Amount Owed Can Never Exceed The Value Of Your Home

Category: Finance, Mortgages.

Are you over 62 years, looking for a little extra money and own most if not all of your home? Here are some of the benefits a reverse mortgage can offer you: #1: Reverse mortgages pay you.

If the answer is yes, then a reverse mortgage may be exactly what you re looking for. Instead of making payments to a lender, the lender makes payments to you. It is, a great option, however if you don t plan on leaving your home to family members after you re gone. #2: You can use the money you receive any way you choose. Of course as payments are made, your equity in your home decreases. For example, it can be used to put your children or grandchildren through college, to pay for, to buy groceries healthcare, to buy a new car or to go on that dream vacation you ve been putting off for 30 years. #3: You can receive your money in a variety of ways: Lump sum. A line of credit. Fixed monthly payments either for a set term or for as long as you live in the home.

A combination of the above. #4: A reverse mortgage isn t limited to single family homes. However, if you are on Medicaid, any reverse mortgage proceeds must be used immediately to continue to qualify for Medicaid. #6: No more monthly payments. In fact, unless you own a manufactured home built before 1976 or an apartment in cooperative housing, your home likely qualifies. #5: Your benefits, Social Security or Medicare are not affected by a reverse mortgage. You can use a reverse mortgage to pay off any existing debts. The amount owed can never exceed the value of your home. And your reverse mortgage loan is repaid when you no longer live in your home as a principal residence. Even better, if your home is sold and the proceeds exceed the amount you owe on your reverse mortgage, you or your estate receives the profits.

Service fees and closing costs can make a reverse mortgage an expensive option, particularly if you re planning on selling the home in a few years. While a reverse mortgage is generally an excellent idea for many, there are a few drawbacks. If you re not planning on living in the house a long time you may want to consider a home equity loan, because they re much less expensive and you can still take the dream vacation you re looking for.

What Is An 80/ 20 Mortgage

Category: Finance, Mortgages.

A home justness mortgage may be a large way to go healthy now, before go up.

Well, you may also know that the notice rates going back up. Over the last few years the whole world has about group and intimate refinancing home mortgage. If you are going to your mortgage, now is the time. A home impartiality mortgage refinance can lower your mortgage disbursement. By refinancing you can also put yourself in a better financial situation in 3 different ways. A home parity mortgage refinance can be used for consolidating debt, this will also be tax deductible. There is truly no down side to a home equity mortgage as long as you are able to fastened a lower good rate.

A home fairness mortgage can also be used to remodel your home, or add an adding up. One another alternative is to use your refinance to shorten the out- and- out term of your payments, probably critical 5 yonks off of your term. Generally when you spread on for an accessible home mortgage you will get the best possible hobby rate. An on home mortgage is most home buyer s best possibility. The internet has created a very minor world for connected home mortgage. The home mortgage arcade has expert dramatic fluctuations because of the internet.

Shoppers are able to compare from numerous lenders in a few. Getting a mortgage with good interests is a easier at the moment, than it has ever been. You only need to know a few inside tips. The dominion, is in the hands of the punter for the first time in history. There are 3 gear that every home buyer had better do to get a extreme mortgage offer. Here is what you need know about financing your home with an 80/ 20 mortgage loan. If you are a prospective homeowner wanting to assured financing to toehold your home but do not have the 20 percent down recompense compulsory by most mortgage lenders, an 80/ 20 mortgage could be your reaction.

In many parts of the country the average bill for a home has gone up extensively over the past few an age. Many of these individuals have to 80/ 20 mortgages to fixed firmly 100 of the mortgage financing they need. This makes it difficult for many individuals to qualify for the financing they need using a out- of- date mortgage moneylender. What is an 80/ 20 Mortgage? You will have a first mortgage for 80% of your homes rate and a second mortgage for the outstanding 20% . An 80/ 20 mortgage is actually two loans.

By this 80/ 20 mortgage you will avoid Private Mortgage Insurance which can add of to your medium- term mortgage compensation. This allows you to finance your winding up costs and minimizes the cash you will need out of mini to close on your home. In adding together to your 80/ 20 mortgage some offer financing for 103% of the fee on your home. How to Get an 80/ 20 MortgageA good site to dawn clothes shopping for an 80/ 20 mortgage is a mortgage broker. If you use a mortgage broker be sure to shop from a brand of and read all of the minute photograph. Mortgage brokers have gate to a array of avant- garde mortgage and programs to help get populace qualified to acquisition their. You will need to do your project to stay away from overpaying for your mortgage.

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Home equity loans are sometimes used for consolidating consumer debt or covering a large expense such as a wedding, or home repairs, college expenses to your existing home.

What Is A Debt Consolidation Home Loan

Category: Finance, Mortgages.

As the amount of people who are in debt in the UK continues to rise, people are finding themselves simply overwhelmed by their mounting debt problems. This can cause huge amounts of stress and worse still, often lead to further unintentional debt.

Many people have a variety of debts and their monthly budget cannot cover the amount of money they have to pay back. In this situation it is worthwhile considering a variety of possible solutions to help you with your debt problems. Millions of people up and down the country are having severe problems with their finances and for some of those people a debt consolidation home loan may be the suitable solution for them. The following information on the possibilities of taking out a debt consolidation home loan, will give you an idea if this is possible solution to help you plan your debt free future. To find out if it s the right decision for you we first address some basic debt consolidation home loan information. A debt consolidation home loan is a low- cost loan which is secured against your home. What is a debt consolidation home loan?

It works by using the spare capital in your home( also called" equity" ) to pay off your debt. By choosing a debt consolidation home loan to solve your debt problems you will be able to pay off all your debt, regardless of how many different lenders you owe money to. This is made possible by the rising house prices which have been experienced over the last five years in the UK. A debt consolidation home loan could reduce your interest costs which you currently have on the outstanding debt and reduce the monthly repayments which you currently have to make. A debt consolidation home loan not only takes the pressure off, which lenders may currently putting you under, but can offer you the situation whereby you are only making one monthly repayment. A debt consolidation home loan can be the best way to wipe your debt slate clean and start your financial situation all over again.

In brief, it offers those in a seemingly hopeless situation that there is" life after debt" . A debt consolidation home loan is suitable for a wide variety of people who are in financial difficulties and often owe many different creditors money. Who a debt consolidation home loan suitable for? What are the benefits of a debt consolidation home loan? They include: Home Improvements- A debt consolidation home loan is one of the best ways of raising cash for home improvements. The benefits of a debt consolidation home loan are significant and should not be overlooked.

Low Interest Rate- The interest rates for a debt consolidation home loan can be extremely low as the loan is secured against your home. Credit Rating- A debt consolidation home loan can actually improve your credit rating or prevent it from any further damage. Pay Off Debt- The most beneficial part of a debt consolidation home loan is the fact that it will help you pay off your debts quickly. If you are struggling to repay the money which you owe then a debt consolidation home loan might just be the answer for you. A professional financial adviser will be able to talk you through the range of debt consolidation home loan products on the market and advise which one is most suitable for your individual circumstances.

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Taking out a mortgage is always a huge decision. Taking your mortgage from the salesman who makes commission from selling is not the best way to go.

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What Is An 80/ 20 Mortgage

Category: Finance, Mortgages.

A home parity mortgage refinance may be a major way to go desirable now, before rates go up. Well, you may also know that the consequence going back up.

Over the last few centuries every man jack has about support and domestic refinancing their home mortgage. If you are going to refinance your mortgage, now is the time. A home fairness mortgage can lower your mortgage recompense. By refinancing you can also put yourself in a better financial situation in 3 different ways. A home impartiality mortgage refinance can be used for debt, this will also be tax. There is essentially no down side to a home justness mortgage as long as you are able to assured a lower activity rate.

A home evenhandedness mortgage can also be used to remodel your home, or add an tally. One extra route is to use your refinance to shorten the out- and- out term of your payments, probably cold 5 an inordinate length of time off of your term. Generally when you utilize for an working home mortgage you will get the best possible interest rate. An operational home mortgage is most home buyer s best decision. The internet has created a very slight world for online home mortgage. The home mortgage market has skilled dramatic vagaries because of the internet.

Shoppers are able to compare rates from numerous lenders in a few. Getting a mortgage with good interests is a nowadays, than it has ever been. You only need to know a few inside tips. The country, is in the hands of the purchaser for the first time in history. There are 3 things that every home buyer must do to get a illustrious mortgage offer. Here is what you need know about financing your home with an 80/ 20 mortgage loan. If you are a prospective homeowner wanting to closed financing to buy your home but do not have the 20 down payment compulsory by most mortgage, an 80/ 20 mortgage could be your solution.

In many parts of the country the average rate for a home has gone up notably over the past few. Many of have to 80/ 20 to protected 100 percent of the mortgage financing they need. This makes it difficult for many nationality to qualify for the financing they need a long- established mortgage giver. What is an 80/ 20 Mortgage? You will have a first mortgage for 80% of your homes help and a second mortgage for the left behind 20% . An 80/ 20 mortgage is in reality two loans.

By using this 80/ 20 mortgage you will forestall Private Mortgage Insurance which can add hundreds of dollars to your prearranged mortgage fee. This allows you to finance your winding up costs and minimizes the cash you will need out of compact to close on your home. In totaling to your 80/ 20 mortgage some lenders offer financing for 103% of the asking worth on your home. How to Get an 80/ 20 MortgageA good grade to inception bargain hunting for an 80/ 20 mortgage is a mortgage broker. If you use a mortgage broker be sure to shop from a assortment of offers and read all of the minor photocopy. Mortgage brokers have right to use to a multiplicity of eccentric mortgage and to help get ancestors qualified to grasp.

You will need to do your study to eschew overpaying for your mortgage.

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Getting a new mortgage? Mortgage brokers( even at banks) get paid on commission.

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A second mortgage can also be referred to as a home equity loan.

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When A Gift Of Equity Is Provided, The Purchase Price Can Remain As The List Price

Category: Finance, Mortgages.

Just like the Camaro, FHA is popular again in Arizona. So what s all the excitement about?

And with FHA reform around the corner, it may take an even bigger bite out of Fannie Mae and Freddie Mac. You still need a fairly clean credit report or some compensating factors to qualify for an FHA loan. For me it s not about credit or rate and I ll explain why. Also, the FHA rates can be less competitive and there is mortgage insurance, even with 20% down payment. In this buyer s market, the knee jerk reaction is to negotiate lower purchase prices. In a case where the purchase price is reduced, even if the, the equity disappears appraisal comes in higher.

Reducing list prices or presenting low offers becomes a chain reaction that disrupts values in an otherwise stable neighborhood. Subsequently, the average price level in a neighborhood drops based on the most recent sales comparable. By utilizing FHA approved Down Payment Assistance( DPA) programs, a seller can make a more attractive counter- offer rather than just dumping the price. So how can we slow or stop this downward spiral? Here s how it works. The gift of equity can be up to 10% towards the down payment of the home. By working with the buyer s mortgage broker, a DPA program acts as conduit for a seller- paid gift of equity.

When a gift of equity is provided, the purchase price can remain as the list price. For the buyer, using a DPA means they can afford a more expensive home or potentially qualify for a home normally unavailable to them. This keeps the property values higher, despite having a few desperate sellers in the neighborhood. Also, the instant equity can help buffer against further value reduction in their area. The 6% can be used to pay points that reduce the mortgage interest rate and the buyer s debt- load. In addition, the FHA allows a 6% seller contribution towards closing costs.

This greatly improves a buyer s chance of qualifying for a home. There is nothing more disappointing to a new homeowner than having a builder stage a fire sale in their neighborhood. In new neighborhoods where a builder is stranded with spec homes, utilizing a 10% DPA program and a 6% contribution towards loan closing costs is a viable alternative to price slashing. If you are a FSBO or a real estate professional, here is the proper wording to be used on a purchase contract involving both a DPA gift and a seller contribution towards closing costs: "Seller agrees to pay 10% of the sales price through the AmeriDream Down Payment Gift program plus a processing fee of$ 37Seller further agrees to pay an additional 6% of the sales price which is to go towards the buyers closing costs, pre- paid finance charges or reserves. " Variations of the gift% and the seller contribution% can be negotiated but cannot exceed the figures above. With basic understanding of how to leverage DPAs and the FHA guidelines, property values can remain more stable and more buyers can be qualified for a new home.

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Someone told me he was saving lots of money because he switched his mortgage payment schedule to biweekly.

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If you already have a mortgage than you surely know the basic and the" tricks" for obtaining a great deal. Of course in any case professional advice should be taken before signing any mortgage.

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Bad credit loans are in huge demand. What s more, you ll have no problem finding someone willing to give you a bad credit loan, but it would be a mistake to accept it.

This Is Called Negative Amortization Or Deferred Interest

Category: Finance, Mortgages.

Adjustable rate mortgages, are a useful, also called ARMs kind of mortgage for people in certain situations. An ARM provides flexibility, changing throughout the term of your mortgage.

Their set terms and plans can help you decide what kind of loan to get when you buy a new home or refinance your existing one. These changes are dependent on prevailing interest rates, and the guidelines and requirements of your lender. If you d like to get this kind of mortgage, remember to consider several factors. Generally, it starts at a lower rate than a traditional mortgage, then will fluctuate throughout the term of your loan. An adjustable rate mortgage is based on the idea of being able to have lower mortgage payments compared to a fixed rate loan. The rate will stay the same over a predetermined period, then change afterwards.

This means that mortgage lenders can offer lower prices to those who might not ordinarily be able to afford one. How long this period is will depend on your individual loan. Remember to consider how long you re planning to keep your home when you calculate how the period of your fixed rate will affect you. It can be anywhere from a month to a decade. The second part of this kind of a loan is called the index, which is tied to the prevailing interest rate. Indexes can come from a few different sources, including the 12 MTA, a one year treasury guide, or London Interbank, the LIBOR Offering Rate, updated every one to six months, the Cost of Funds Index( COFI) , Cost of Savings Index( COSI) or Cost of Deposit Index( CODI. ) These latter indexes are prone to more fluctuation than the former.

This helps to determine the adjusted rate of the mortgage. The last way to find an index is by using the prime bank rate. Indexes work through each set index having a margin. However, these are mostly for home equity credit lines. This margin will determine your interest rate after your fixed period ends. By referring to the margin, it s possible to tell what percentage of the adjustable rate you ll have to pay.

Margins vary wildly, depending on the index you use and the lender you re with. If you know what index your lender uses, you can predict the interest rate on your adjustable rate mortgage. This restricts how much your rate can change and is usually no less than two percent, but no more than six percent. The third part of an Adjustable Mortgage is called a cap. This prevents extreme fluctuation in your interest rates without warning. This variety of funding can help by offering four different kinds of payments, each based on a cap and index.

Some also have starting rates, which differ depending on the lender and index, and can also be affected by your credit score and the amount of your up front deposit. The first kind is a minimum payment option and is the lowest of all. Unpaid interest is placed into a category called interest cut, which increases the amount you ll eventually have to pay. It doesn t pay either the principle or all of the interest. This is called negative amortization or deferred interest. However, an interest only payment comes with a deadline by which you must repay the entirety of the loan.

An interest only payment will allow you to pay for your interest, without having to pay enough to reduce the principle. Another kind of home loan has a thirty year payment. The fourth kind of payment is similar, but the amount must be paid off within fifteen years instead, which means that rates are higher. Each payment goes towards the principle and interest consistently, as per a traditional loan. Using a flexible rate loan option as a method for paying off a mortgage gives more payment flexibility. However, it s important not to get trapped by the very low payments that this loan can have at some times.

This can help some people pay off a loan more easily. In the end, it still has to be paid off. Is it a good idea? Before you sign for an ARM, it s important that you know the rates and terms that apply to it to enable you to get the best possible deal. It s questionable, so best that you talk to a few lenders before taking any action.

Be A Proud Owner Of Your Dream House

Category: Finance, Mortgages.

Getting your dream house is one of the satisfying events in everyone s life. So it is imperative to look for a mortgage to suit your style of living and to save money.

When it comes to buying a house, you should also aware that your are taking a huge burden on your shoulder in the form of debt. When you decide to buy a house, you should have a careful consideration of the potential house based on your requirement. Similarly the mortgage also. Since house is a long- term event you should give due consideration and think ahead in selecting a house. It too stands before you for long term and identifying a mortgage carefully will save you time and money. When it comes to house, what do you want is more important than what do you get?

Let s put the key factors required to get your dream house: Finalise what you want: First and foremost thing is to decide on what you want? Decide on your requirements like location, structure, size, school etc. Use the power of Internet: Nowadays you can leverage the power of internet. When you finalise your need, it is easier to locate a dream house. Browse on real estate websites and search for the house based on your requirements. Once you short list the property, you can organise a time to inspect the property with real estate people.

Real estate sites provides all the information such as nearest schools, shops, colleges, banks, emergencies etc. Advantage of using a realtor: An another alternative to the above is finding a realtor and discussing your requirement with them. They will also have some tie- up with the mortgage lenders, who will give the mortgage at a cheaper interest rate because of the reference. They will display the houses available before you. This could be a good comparison for you to select on the low interest mortgages. Selecting a mortgage lender: Once you finalise on the property, its now the time to search for mortgage lender.

Have a cautious approach for the teasing offers and learn to read between lines. The best thing is to shop around. Ask quotations from banks, societies and online, financial institutions lenders. Since you are going to commit for huge amount of money, it is always better to do extensive comparisons. Compare the interest rates, fees( onetime and recurring fees) etc. Do your maths before deciding, if you are unsure ask your friends or relatives.

A few differences in interest rate or monthly fees will save a lot, since you are going to have ortgage for a long time( eg 10- 20 years) . Know your down payments: One of the important things when you go for a mortgage loan is the payment you make from your pocket. So the outflow from your pocket increases. You have to pay registration cost, house inspection in, insurance addition to down payment. Discuss all the relating cost before finalising the mortgage with the lender. Documentation: Provide the basic documents to mortgage lender to decide on your application. Do your maths and decide how much you want to borrow to avoid stress on your side.

If you can demonstrate the saving pattern with your bank statement, it will potentially reduce the mortgage insurance premium. It is always better to have solicitor for settlement of the property. The final and important part is the documentation is settlement. Even though it cost, it will overweigh the advantage than disadvantages. But is not restricted to the above. The article discussed above is some of the basic elements required in getting your dream house.

Be a proud owner of your dream house.

Buying A Home Requires Skill In A Variety Of Areas

Category: Finance, Mortgages.

Buying a home requires skill in a variety of areas. It's really too much for most people to do by themselves, as you know, which by now, is why most of us pay good money to hire real estate agents, home inspectors, mortgage brokers, and other professionals to help with the process.

There's negotiating, inspecting a home, financing, and understanding legal contracts. But that doesn' t remove the buyer from the role of project manager, whose job is to understand what each specialist is meant to do and recognize when one of those key players is not doing his or her job right. Five years from now? What features do you require in a home to satisfy your lifestyle now? Depending on how long you plan to stay in your home, you' ll need to ensure that the home has what you' ll need. However, if they start a family, they could quickly outgrow the space. For example, a two- bedroom dwelling may be perfect for a young couple with no children.

Therefore, they should consider a home with room to grow. Could the attic be turned into a master suite? Could the basement be turned into a den and extra bedrooms? Having an idea of what you' ll need will help you find a home that will satisfy you for years to come. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary- if you can prove that you are a good financial risk to a lender. Typically home buyers will need some money for a down payment and closing costs.

If your credit isn' t stellar but you have managed to save 10- 20% for a down payment, you will still appear to be a very good financial risk to a lender. The internet is also a good place to learn about your basic questions. The key is to know more in order for you to make a quality decision. Contacting the agency in your area in charge with and knowledgeable about home buying programs are also useful things to do. o this also while looking for an agent? Who will not convince you in order for him to get a sale, but instead offer guidance in whatever way he could. An real estate agent, means someone you, here can trust. It's one of the most asked questions by first time home buyers.

Lenders are required by law to disclose in writing known as a Good Faith Estimate your estimated closing costs and fees.

What You Can Do If You Already Have An ARM Is To Convert It To A Hybrid ARM Loan

Category: Finance, Mortgages.

When you' re first getting into the process of buying a house, the legalities and the processes can seem daunting. And while it may seem like everything is made to be complicated, there are ways to make sure that you' re the winner in this financial decision.

Not only are you responsible for handling the financing for the home that you wish to buy, but you also need to think about the future and what you will need to pay for in the future. Adjustable rate resets are a common practice in today's financial world. The adjustable rate reset time is when your bank adjusts the overall monthly payment that you are making, in accordance to the housing market interest rates. With more than 20% of all home owners now choosing an ARM loan- or adjusted rate mortgage- you can be sure that when you consider these types of loans, you are choosing wisely. Initially, this adjustable rate reset will be large, but subsequent increases are not nearly as big. This will lock in the current market's interest rate and then allow you to know that your payments will never increase or decrease within your payoff time.

To protect you against rising mortgage rates, the best possible solution is to settle for a 30 year fixed mortgage payoff plan. While the payments may seem larger at first, not being at the mercy of the housing market might be a good tradeoff overall. What you can do if you already have an ARM is to convert it to a hybrid ARM loan. Studies have shown that while many ARM borrowers might pay less during many months, it actually evens out to be about the same rate as you would get with a 30 year fixed mortgage. This is where you will have a fixed loan amount for a part of the loan, perhaps for five to ten years, but then move back into an adjustable rate mortgage agreement. This refinancing process can also help you if you have other monetary problems that you are facing- problems that might affect your ability to pay off your home overall.

This will allow you to have some stability in terms of the fluctuating market, at least for a time. When refinancing, you might be able to borrow against the equity that's already built up in your home, and then pay off high credit card bills. You will need to speak with your lender about the possibility of dealing with adjustable rate resets and then ask for their opinion in terms of whether you would be a good candidate for a fixed rate mortgage. And with the stable payments over the next fixed time period, you will be able to get yourself back on financial track instead of setting yourself up for ups and downs in your financial future. To keep your business, most lenders are more than happy to change your agreement, you can also, but if not shop around for someone that will help you protect yourself from the changing interest rates. In the end, you need to protect your home investment, so if changing your payment plan is going to help you succeed in this respect then you need to start investigating your options now. Of course, shopping around for the best interest rates from your lender is the first step towards securing a loan you can afford, but in the absence of that, you do have options.

With a hybrid loan, you can afford yourself some stability in paying off this debt, but also create a bright financial future.

Q: Is A Big Down Payment Really Important

Category: Finance, Mortgages.

There are hundreds of questions that people have when it comes time to select a new mortgage or buy a home.

Q: When's the best time to buy a house? Heare are five of the the most common home loan questions. A: The best time to buy a house is when you' re ready. Even in markets with modest gains in housing prices, there are tremendous tax advantages to owning your own home. Although housing prices fluctuate, traditionally they have increased over time. There are also huge quality of life issues involved.

If you have children, the security of owning your own home, and giving them a backyard to play in, is priceless. It's great to know that you' re the King or Queen of your own castle. Q: Should I pay off all my debts and bills before applying for a mortgage? Before you rush to pay off student loans, a new car loan or other obligations, talk to your lender. A: Not necessarily. Paying off bills may be a bad idea if it depletes your savings or reduces your down payment.

On the other hand, paying off some debt may be wise if you need to lower your total debt- to- income ratio. Either one presents the appearance that you are living beyond your means. A good way to approach this is to be prequalified for the loan. Q: Is a big down payment really important? Most lenders will offer advice on how to improve your financial situation before you actually apply for the loan. A: That depends on your situation. However, you may not want to use them.

There are a wide variety of loan products available today that make home ownership possible for almost everyone, even without a down payment. Historically, people who buy without a down payment are much more likely to default on their mortgages. Higher default rates mean higher interest rates. It's really simple an owner who has invested more in a home, is going to work harder to keep it, because they have more to lose. So, if you have little or no down payment, you are likely to end up paying a higher interest rate than someone with a large down payment. Many people, especially first- time homebuyers, start with a 5% down payment.

Conventional mortgages usually involve a down payment of 20% or more. The highest interest rates are usually charged by lenders when there is no down payment. Q: How important are debt ratios? There are even 100% financing programs that will allow you to purchase a home with no money down. Debt ratios are general guidelines, not hard and fast rules. They like the total monthly obligations to be no more than 36% of gross income.

Many conventional mortgage lenders like to see a 20% down payment with a house payment that is no more than 28% of gross income. But, those are only guidelines. Don' t let a higher debt ratio keep you from buying the home of your dreams! Mortgage lenders make exceptions to the guidelines every day, based on the buyer's total financial position and credit history. Q: Can senior citizens get a mortgage? Many senior citizens pay a higher percentage of their income for housing, than people in other age groups.

Yes! Also, years of experience has shown that seniors tend to be good credit risks. Often, seniors are approved for a higher debt ratio than usual. For that reason, many lenders have more lenient standards for seniors.