Home Financing
Posted on October 26, 2009
Filed Under Unemployment Will Cause The Most Foreclosures In 2009! |
In shopping for news home it is very necessary to understand the financing market and this is true if you are looking at Vancouver Washingotn Real Estate. Below are some insites.
Lenders over the years, have basically offered the same types of residential mortgage loans that they still offer today because different home buyers different types of loans, and are buying different types of properties so the lenders must have specific loans for specific needs.
Lenders can charge different interest rates and origination fees based on many things, but the most influential will be the credit worthiness of the borrower and the property itself and what the market is dictating on that particular type of loan at the time of purchase.When a borrower has a ‘lease option’, the normal loan parameters will change because the borrower has usually made either more or sometimes less than the down payment required, however the lease option agreement was written, thus the loan has special circumstances involved that will cause the lender to ask that the borrower make up any difference owed in fees prior to funding the loan. A loan for a home is called a residential loan and a loan for a piece of commercial property like a store or factory, is called a commercial loan and both have different requirements and will have different interest rates and processes.
Some examples of Residential Real Estate Purchase Loans:
*Fixed Rate Mortgage: A fixed rate of any duration is more suitable for those who want the security of their rate not going up.
*Adjustable Rate Mortgage: Adjustable rate mortgage loans are not reliable nor secure.
*FHA Loans: FHA, means ‘Federal Housing Authority’ and this is a government insured loan.
*No Mortgage Insurance Loans: No Mortgage Loan Insurance loans usually are available for VA and Adjustable rate loans also.
*Interest Only Loans: The banks and other mortgage lenders all have different interest only loans available so shopping for one is very important for the buyer.
*Jumbo Loans: Larger loan amounts require special financing, and not all lenders offer larger home loans, but the rate usually is higher.
*VA Loans: One of the real great features of the VA mortgage loan is the ‘no pre-payment penalty’ clause.
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