Credit and Loans

Non Comforming Loan Comparison: Adjustable Rate Mortgage Versus Fixed Rate Mortgage

Non Comforming Loan Comparison: Adjustable Rate Mortgage Versus Fixed Rate Mortgage

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Are all mortgage loans the same? Or can making a choice between one particular type of mortgage get you in trouble if you aren’t careful. In the case of an adjustable rate mortgage versus a fixed rate mortgage it is true that all mortgages are not alike.

Of course in many cases the type of loan you can secure has to do with how good or bad your credit has been over the years. Your FICO score will often determine the loan you will be offered. Basically, FICO is an acronym for Fair Isaac Corporation and refers to your best-known credit score calculated by using a specific mathematical formula.

GMAC takes the FICO score into account and also explains the difference between a fixed rate mortgage and adjustable rate mortgage, depending on which loan you might be eligible for, “Most mortgage loans have either a fixed interest rate or an adjustable interest rate. With a fixed-rate mortgage, the interest rate never changes and your payments remain stable throughout the life of your loan.

Home Refinancing For People With Bad Credit - Who Qualifies For A Sub-prime Mortgage Loan?

Home Refinancing For People With Bad Credit - Who Qualifies For A Sub-prime Mortgage Loan?

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Sub-prime mortgage loans gives people options, including those with bad credit. Sub-prime lenders don’t have to follow conventional underwriting rules, so they can work with anyone, regardless of their credit background. They can also provide more lenient terms than traditional lenders.

Qualifying For Sub-Prime Financing

Basically, anyone can qualify for financing with a sub-prime financing company. No matter your credit situation, even if you are just out of bankruptcy, you can apply with a sub-prime lender.

FHA Home Loan Program – Helps Homebuyers Qualify for Mortgages and Financing by reducing Income and Down Payment Requirements

FHA Home Loan Program – Helps Homebuyers Qualify for Mortgages and Financing by reducing Income and Down Payment Requirements

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(Best Syndication) The federal government has programs set up to assist homebuyers purchase houses. These programs are set up by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), the Veterans Administration (VA), and the Rural Housing Service (RHS), which is a branch of the U.S. Department of Agriculture (USDA).

FHA does not make the loans but they do guarantee the loans for qualified houses and buyers. Homes need to meet certain criteria before FHA approves the loan guarantee. Some buyers find it hard to buy a home using conventional lending programs because of their income or their down payment.

Types of Mortgages – Deciding Which Mortgage Is Right For You – Adjustable Rate Loans – ARMs Part 3 Tied To Inedexes

Types of Mortgages – Deciding Which Mortgage Is Right For You – Adjustable Rate Loans – ARMs Part 3 Tied To Inedexes

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(Best Syndication) There are many types of loans to choose from and there are some considerations that should be made before deciding. Typically, if interest rates are low and you think you are going to be in the house for the long haul, a fixed rate mortgage is usually best.

Some buyers may find it hard to qualify for a fixed rate mortgage. Maybe their credit scores are low or their income at the time of purchase is not sufficient for the home in question. Adjustable rate and interest only mortgages can be considered for this situation.

Lenders In Hot Water Over Subprime Lending Practices – Loans To Consumers With A Bad Credit Score A Problem

Lenders In Hot Water Over Subprime Lending Practices – Loans To Consumers With A Bad Credit Score A Problem

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(Best Syndication) The Subprime lending industry has mushroomed over the past decade and now some lenders are in big trouble. The FTC estimated that in 1997 the subprime market was just over $125 billion. A recent estimate places the business at $600 billion.

Loans made to home buyers with spotty credit histories have begun to take their toll on such companies as Novastar Financial Inc. and New Century Financial Corp. According to a report in Business Week, these two companies are the hardest hit. "When we see downturns it is very common for large numbers of originators to no longer be around at the end of the cycle," said Andrew Chow, a portfolio manager at SCM Advisors LLC.

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