Type Of Mortgage Loan

Homebuyers and homeowners need to decide which home Mortgage loan is right for them. Then, the next step in getting a mortgage loan is to submit an application ( Uniform Residential Loan Application ). Although we try to make the loan simple and easy for you, getting a mortgage loan is not an insignificant process.

Insurance Set

Below is a short synopsis of some loan types that are currently available.

CONVENTIONAL OR CONFORMING MORTGAGE Loans are the most common types of mortgages. These include a fixed rate mortgage loan which is the most commonly sought of the various loan programs. If your mortgage loan is conforming, you will likely have an easier time finding a lender than if the loan is non-conforming. For conforming mortgage loans, it does not matter whether the mortgage loan is an adjustable rate mortgage or a fixed-rate loan. We find that more borrowers are choosing fixed mortgage rate than other loan products.

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Conventional mortgage loans come with several lives. The most common life or term of a
mortgage loan is 30 years. The one major benefit of a 30 year home mortgage loan is that one pays lower monthly payments over its life. 30 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. A 15 year mortgage loan is usually the least expensive way to go, but only for those who can afford the larger monthly payments. 15 year mortgage loans are available for Conventional, Jumbo, FHA and VA Loans. Remember that you will pay more interest on a 30 year loan, but your monthly payments are lower. For 15 year mortgage loans your monthly payments are higher, but you pay more principal and less interest. New 40 year mortgage loans are available and are some of the the newest programs used to finance a residential purchase. 40 year mortgage loans are available in both Conventional and Jumbo. If you are a 40 year mortgage borrower, you can expect to pay more interest over the life of the loan.

A Fixed Rate Mortgage Loan is a type of loan where the interest rate remains fixed
over life of the loan. Whereas a Variable Rate Mortgage will fluctuate over the life
of the loan. More specifically the Adjustable-Rate Mortgage loan is a loan that has a
fluctuating interest rate. First time homebuyers may take a risk on a variable rate for qualification purposes, but this should be refinanced to a fixed rate as soon as possible.

Loans
A Balloon Mortgage loan is a short-term loan that contains some risk for the borrower. Balloon mortgages can help you get into a mortgage loan, but again should be financed into a more reliable or stable payment product as soon as financially feasible. The Balloon Mortgage should be well thought out with a plan in place when getting this product. For example, you may plan on being in the home for only three years.

Despite the bad rap Sub-Prime Mortgage loans are getting as of late, the market for this kind of mortgage loan is still active, viable and necessary. Subprime loans will be here for the duration, but because they are not government backed, stricter approval requirements will most likely occur.

Refinance Mortgage loans are popular and can help to increase your monthly disposable income. But more importantly, you should refinance only when you are looking to lower the interest rate of your mortgage. The loan process for refinancing your mortgage loan is easier and faster then when you received the first loan to purchase your home. Because closing costs and points are collected each and every time a mortgage loan is closed, it is generally not a good idea to refinance often. Wait, but stay regularly informed on the interest rates and when they are attractive enough, do it and act fast to lock the rate.

A Fixed Rate Second Mortgage loan is perfect for those financial moments such as home improvements, college tuition, or other large expenses. A Second Mortgage loan is a mortgage granted only when there is a first mortgage registered against the property. This Second Mortgage loan is one that is secured by the equity in your home. Typically, you can expect the interest rate on the second mortgage loan to be higher than the interest rate of the first loan.

An Interest Only Mortgage loan is not the right choice for everyone, but it can be very effective choice for some individuals. This is yet another loan that must be thought out carefully. Consider the amount of time that you will be in the home. You take a calculated risk that property values will increase by the time you sell and this is your monies or capital gain for your next home purchase. If plans change and you end up staying in the home longer, consider a strategy that includes a new mortgage. Again pay attention to the rates.

A Reverse mortgage loan is designed for people that are 62 years of age or older and already have a mortgage. The reverse mortgage loan is based mostly on the equity in the home. This loan type provides you a monthly income, but you are reducing your equity ownership. This is a very attractive loan product and should be seriously considered by all who qualify. It can make the twilight years more manageable.

The easiest way to qualify for a Poor Credit Mortgage loan or Bad Credit Mortgage loan is to fill out a two minute loan application. By far the easiest way to qualify for any home mortgage loan is by establishing a good credit history. Another loan vehicle available is a Bad Credit Re-Mortgage loan product and basically it's for refinancing your current loan.

Important Insurances you must have

Auto Insurance:
         This one is apparent because it is illegal to drive vechicle in the USA without some form of auto insurance. People advice on auto insurance if you are looking to save some money is to do your homework and go to an independent agent whom can shop different companies to find you the best rate.  Save money on the premium by opting for a higher deductible or cutting out collision coverage if your car is more than 7 years old.  Check cheap on the liability portion of auto coverage.  If you cause an accident and someone becomes paralyzed for your negligence, an attorney will take you to the cleaners without proper liability insurance.

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Health Insurance:
          In my point of view there are plenty of people between the ages of 18 – 30 whom do not have health insurance. One semi-major accident or illness and you will be paying medical bills for the next 10 years.  I know that there are plenty of universities that offer a plan that is catered toward students and the premium is reasonable.  If your employer offers a health plan in their benefits package, PLEASE sign up for it.  Usually they fit the bill for most of the monthly premium.

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Property Insurance:
          This coverage applies to renters and homeowners.  If you own a home or a condo/townhouse, then you NEED to have a homeowner’s policy.  The standard homeowner’s policy is the most bang for your buck in terms of what it covers as an insurance policy.  I know that many people think that homeowner’s insurance is lousy (especially if you live in Florida), but it offers quite a bit of coverage.  First, it covers your home for everyting unless specifically excluded like flood,  it covers your personal property ANYWHERE in the world, and it gives you liability coverage if someone sues you for being liable for something that happened to them.  It’s your biggest asset, you NEED to protect it.  If you rent, you NEED to have a renter’s policy.  It covers your stuff for things like theft, water damage, fire, and lightning. It also has some liability coverage built into it as well.  A renter’s policy is literally $10 – 15 per month. Cut out two pizzas per month and you can afford it.

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Long-term Disability Insurance:
            This is the one that most people do not think about, and therefore, seldom purchase.  This especially goes for younger people, because we like to think we’re invincible.  Well, the fact is that accidents happen all the time, and you need to protect yourself if something tragic happens, and you are unable to work any longer.  Long-term disability insurance kicks in when you injure yourself and are unable to go back to work for an extended period of time or never.  it supplements the income you would have earned.  This insurance is rated largely on your occupation, so if you have a desk job, your premium would be really cheap. But if you are in the construction business, your premium would be pretty expensive.

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