By CL Haehl

An 80/20 mortgage loan is where, for a new home loan, there are two separate loans with two separate payments. There are also two separate interest rates and the loans are usually funded by separate companies. The two loans consist of 80% of the loan amount and 20% of the loan amount. An 80/20 mortgage loan is a great option for those individuals who do not have a sufficient down payment for buying their new home.

Some of the benefits to having an 80/20 mortgage loan are:

1. No PMI – Private mortgage insurance is a monthly payment that every borrower needs to pay when they purchase a home with less than 20% down. PMI is insurance for the lender to protect the lender against losses should the borrower default on their loan. PMI does not insure the borrower in any way. When you split your mortgage into two loans, one loan is for 80% of the loan amount and the other is for 20% of the loan amount. So, PMI is not necessary for the first mortgage.

2. Qualify for 100% Financing on Your Mortgage – Many times a borrower might not be able to qualify for 100% financing on their mortgage loan unless they do the 80/20 setup with their loan.

3. Lower Interest Rate on 1st Mortgage – Let’s say you expect to be able to pay down a significant amount on your mortgage loan in the near future. It works in your best interest to get an 80/20 mortgage loan, because as you quickly pay off the second mortgage, your interest rate on your first mortgage will be much less than if you had financed all 100% of the loan through one company. Usually the interest rate on the second mortgage is much higher, but that is nullified if you pay the second mortgage off quickly.

There are many ways to use creative financing to finance a mortgage without any down payment. Try consulting with more than one broker to find out what all of your options are before you decide.

About the Author: Apply for a 100% Financed Mortgage Loan Today

Source: isnare.com

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By CL Haehl

Refinancing your mortgage is a big decision, and one that shouldn’t be made blindly. Here are a few things to watch out for when refinancing your mortgage.

Beware of a broker that is reluctant or refuses to disclose their YSP, or ‘yield spread premium’. That term refers to the amount of money the lender is giving to the broker in exchange for charging you a higher interest rate or enacting a longer or more severe pre-payment penalty. Statistically, unsolicited refinance offers have a much higher likelihood of coming from ‘predatory’ lenders.

Be careful–all Good Faith Estimates are just that; estimates. They are all subject to change.

RESPA (Real Estate Settlement Procedures Act, a federal consuming protecting statue first enacted in 1974) prohibits any settlement service provider from giving or receiving anything of value for the referral of business in connection with a mortgage or charging fees or markups when no additional services has been provided. Mention ‘RESPA’ to your lender, ask for a list of fees (they cannot charge you $25 for a credit report that cost them $8.50, for example), and be candid about shopping elsewhere if you feel slighted. At the same time, blindly shopping around may keep the broker from going the extra mile for you if something goes wrong and he/she feels that you haven’t placed faith in them.

Trust your gut. If something about your refinance transaction consistently feels wrong, there’s a good chance it is. Many lenders will gloss over the fact that you have a ‘Right of Recession’ where you have from the day the loan closes until midnight three days later to cancel the deal, and you cannot be fined for that termination (except for losing any out of pocket expenses, such as an appraisal). That being said, almost everyone feels some sort of ‘buyer’s remorse’ soon after closing a major financial transaction, even if that transaction is in your best interest.

About the Author: Low Rate Mortgage Refinance Companies – Recommended Leading Lenders Online – We maintain a list of reputable lenders online and update the list regularly.

Source: isnare.com

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By Raynor James

Known as the Keystone State, Pennsylvania is a hard working state. Depending on where you live, Pennsylvania real estate can be reasonable or pricey.

Pennsylvania

Pennsylvania is a state with an incredible amount of history battling with modern tendencies. Historically, the state is the home of such notable locations as Gettysburg and Valley Forge. For scenery, you can experience mountainous areas hosting elegant resort areas and wide open rural areas. In contract, the state is also home to Pittsburg and Philadelphia, two of the hardest working cities in the country.

Philadelphia

Philadelphia is a microcosm of the clash of old and new in Pennsylvania. The first capital of the United States, Philadelphia is a big city with old world charm. The city was the location of the signing of both the Declaration of Independence and the Constitution and is favorite of history buffs. At the same time, the ‘City of Brotherly Love’ has seen a development and economic resurgence since the 1980s and can be described as an economic powerhouse. As with many big cities, the town has top end attractions with fans being passionate about the Flyers, Eagles, Phillies and 76ers as well as college basketball.

Pittsburg

Once considered the gateway to the West, Pittsburg sits at the meeting of three large rivers. Considered an industrial city because of a long history of steel manufacturing, the city is actually very pleasant and has even been voted the best city to live in by one publication. Today, the steel industry has lessened and the city is vibrant with college students, park areas and an active nightlife.

Erie

Often maligned, Eire is the hidden gem of Pennsylvania. A smallish town on Lake Erie, the town has a relaxed atmosphere, plenty of landscaping and nice beaches. Stretching from the town is huge park, which makes for excellent outdoor activities.

Pennsylvania Real Estate

As you might imagine, Pennsylvania real estate prices are both cheap and expensive depending on the location. A single-family home in Erie will average less than $200,000, while downtown Philadelphia is going to run close to $600,000. Surprisingly, the same home in Pittsburg will cost a very reasonable $250,000.

Pennsylvania real estate seems to mirror the national average for appreciation rates. In 2005, property appreciated at just over 13 percent.

About the Author: Raynor James is with fsboamerica.org – FSBO homes for sale by owner. Visit our “sell my home” page at fsboamerica.org/seller.cfm to sell your home yourself with a free 1 month listing.

Source: isnare.com

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