The Handy Investing Answer Book. Paul A Tucci
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Название: The Handy Investing Answer Book
Автор: Paul A Tucci
Издательство: Ingram
Жанр: Ценные бумаги, инвестиции
Серия: The Handy Answer Book Series
isbn: 9781578595280
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How should I choose a lender?
You should choose a lender by comparing the interest rates, the amount of money required for a down payment, and any fees or points associated with the loan. You may also want to inquire how long it will take to process your loan. Always speak with several different lenders, and beware of lenders offering comparatively low interest rates, as they may just be “teaser rates” designed to get you to come in and speak with them. You should meet with lenders after you have learned as much as possible about their current rates and practices, as well as fees, so that you will know who is giving you the best deal.
What are “points”, or loan origination fees?
Lenders charge points for mortgages, including fixed-fee mortgages. One point represents 1% of the loan amount. Not all lenders charge points for loans, so shop around to find the lowest fees.
Getting preapproved for a home loan will give you extra bargaining power when bidding on a house. Sellers are more inclined to agree to an offer if they know a lender has thoroughly checked your credit and financial stability.
Should I sell my house before getting a loan for my next home purchase?
Your chances of obtaining a mortgage will be far better if you sell your current house, because your income may not support the payment of two mortgages. Also, sellers look more favorably on offers without house sale contingencies.
What does it mean to be “preapproved” for a loan?
When someone is preapproved, the lender has already investigated his creditworthiness, and has established that he can borrow up to a certain amount from the lender. A home-buyer often receives preapproval before making an offer on a house, in order to make his offer more attractive to a seller.
Why is it important to be preapproved for a loan?
When comparing offers to buy a home, a house seller would prefer to consider an offer from someone who has a letter from a lender stating that he is already approved to borrow the amount of the sale price of the house over someone who makes the purchase contingent upon getting a mortgage or financing.
What does it mean to be “prequalified” for a loan?
Prequalification for a loan means the bank or mortgage company has looked at the borrower’s income and debt to determine the approximate amount of the loan. It does not mean the borrower has been approved for a loan.
Can adding just a few hundred dollars to my mortgage payment help to reduce my debt?
Yes. You can choose to add an additional sum to your normal monthly mortgage payment to pay down your loan principal. The effect can shave several years off your mortgage, and save you thousands of dollars in interest payments, depending on your loan size, your interest rate, and how many months you have remaining on your mortgage.
How many homes are in foreclosure in the United States?
According to experts at Realtytrac.com, as of March 2014 there are 483,224 bank-owned homes in the United States, with 51% still occupied by the former owner or tenant. This is down from a peak of about one million homes in 2010.
The real estate bubble that precipitated the U.S. recession of 2007–2009 resulted in widespread home foreclosures. Even today, home ownership in the United States is at a low not matched since 1960.
How many people risk home foreclosure?
in 2010, 1.7 million homeowners were notified that they were at risk of defaulting on their loan because of missed payments. This means one in 78 homeowners was at risk.
How many U.S. homes received foreclosure filings in 2010?
According to RealtyTrac, more than 3.8 million foreclosure filings—including default notices, scheduled auctions, and bank repossessions—were reported on a record 2.87 million U.S. properties in 2010.
How long does it take for a home to be foreclosed?
Within 15 months after you stop paying your mortgage, your home reverts to the lender.
What states have the highest rate of foreclosure?
Nevada, Arizona, Florida, California, Utah, Georgia, Michigan, Idaho, Illinois, and Colorado have the highest rates of foreclosure.
What does the foreclosure rate mean for American home ownership?
The foreclosure rate means that home ownership most likely will fall to its lowest level since 1960, when 61.9% of American families owned their own homes, and perhaps even lower over the next few years.
What is a “home equity loan”?
A home equity loan, or second mortgage, is a loan financed by a bank that allows a homeowner to receive a lump sum cash payment for the value of the equity he has accrued in his house, or leverage the accrued equity of his principal residence. After you have been living in your house for some time, assuming that real estate prices have been increasing, you begin to build equity in your house. Banks allow you to borrow from them this value, or equity, in the form of a line of credit that can be paid off over time at the prevailing interest rate when you secure the loan. Many people use this loan to make necessary improvements on their home, which may increase the home’s value. As the house appreciates in value from the time of purchase, and the value of this asset changes over time, the house’s equity is the value of the house (according to the lender) minus the value of any previous loans or mortgages on the property. This value can be loaned back to the owner, to make improvements to the property, consolidate debt, or pay other expenses. You may borrow a certain percentage of this equity. You must pay fees and closing costs, and must pay off this loan, including interest, according to the terms set forth by the lender. Typical terms to pay off home equity loans range from five to 15 years. The full amount of the loan must be repaid if the house is sold before this term expires. The AARP reports that 16% of Americans age 50+ used their home equity to pay down credit card debt.
How does a lender know the value of a house, if it is not for sale?
In order to compute the house’s worth, lenders use a variety of data points, including recent sales of nearby property, property records, deeds, mortgage records, and current appraisals.
What is a “home equity line of credit” (HELOC)?
A home equity line of credit is similar to a home equity loan, except the lender gives you the opportunity to use all or part of the credit over a certain period of time. Lenders may offer initial low interest rates, and may attach conditions as to when the credit line is to be paid back or closed, so it is important to understand the fine print on a HELOC. The interest rate may also be fixed or variable, depending on the terms established by the lender, allowing a homeowner to access as much of the credit as he requires.
Why are home equity loans desirable to homeowners?
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