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Mortgage - A stated-income loan qualifies a borrower using the income the borrower states, as opposed to the income the borrower can document. With an SIL, the lender agrees not to verify the income the borrower states on the application. As one might expect, SILs are priced higher than fully documented loans, and the foreclosure rate is also higher. With overall foreclosure rates reaching uncomfortably high levels, SILs have emerged as a possible weak point in the underwriting process. Regulators and legislators have been considering whether they should bar SILs or limit them in some way. |
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 Mortgage - What are the Benefits of An Interest Only Mortgage Home Loan.
Whether you do a cash-out refinance or take out a home equity loan or line of credit, which may be less expensive, preserving your cash flow is an important thing to consider. Paying only the interest will save you something each month, but perhaps not as much as you expect. |
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Should I Buy Points to Lower My Mortgage Interest Rate - Always ask yourself if you are better off paying a higher interest rate instead of purchasing points in order to lower the mortgage interest rates.. Which is the best decision. Most fixed-rate mortgages allow borrowers to pay an upfront fee, or points, in exchange for a more favorable mortgage rate. Buyers who purchase points can default, move or refinance more than three years before reaching the break-even point from purchasing points. Your break even point is termined by how many years you live in the home or refinance the current mortgage. |
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What are points? - Points apply to mortgage loans and are referred to as a percentage of the loan amount. They are an upfront cost associated with a mortgage. For example 1 point on a $300,000 loan is $3,000. Why are their points on loans? - Points are generally charged for two reasons, either as loan discount points where they are utilized as an upfront premium to reduce the loan interest rate, or they are required as a premium for a specific program. You should always consultant your loan officer for specific details. Is it okay to pay points? - Often times paying points allows you to lower your interest rate and potentially save thousands of dollars on the life of your loan. |
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