Dean Shainin asked:


Getting yourself a home loan calculator is the first step you need to take if you want to get the best type of loan. Many homebuyers however do not realize this is an important first step – and they make the mistake of going ahead and look at houses for sale and talk to realtors without getting a home loan calculator first.

Why is it important to consult with your home loan calculator first and foremost?

The amount of money you have available for down payment impacts on all aspects of buying a home, namely how you write your purchase offer and the home loan programs you qualify for. A home loan calculator is a very useful tool which tells you what you can afford, which you need to know before you start to look for your dream home.

Use A Home Loan Calculator To Decide Upon The Right Mortgage Programs

With the home loan calculators, you will be able to know if you will have enough available for a minimum down payment. This is important because some home loan programs are limited to only a few types of mortgages. If you have enough for a down payment, but need the lender or seller to cover all or part of your closing costs, this further limit your options and it is important for you to know this in advance before you start talking to the homes sellers or realtors.

If you intend to borrow all or a part of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify. If a potential borrower has enough money for a large down payment, then they have a lot of options.

Conventional fixed rate loans, adjustable rate mortgages, buy-downs, VA, FHA and graduated payment mortgages are the varied programs of home loan choices.

Before You Write Your Offer, Use Your Home Loan Calculator

How you write your offer to purchase a home depends on your down payment, thus making it important that you use the home loan calculator first. In addition, it is important for you establish the amount of the monthly mortgage payment you can comfortably afford subject to the home loan you intend to take.

What does the loan program you are intending to take allow? Can you ask the seller to pay all or part of the closing costs? For instance, for smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. The type of costs which the seller is allowed to pay varies by home loan programs. It is important for you to know all this information before you write an offer.

The amount of your down payment also affects your ability to qualify for a loan. The more down payment you have, the more flexible and accommodating lenders tend to be. On the other hand, with small down payment, lenders tend to be strict about having you conform to their underwriting guidelines.

Based on the various factors discussed above, you can appreciate how important it is for you to use your home loan calculator when deciding on a mortgage loan.



BOB

Kristin Abouelata – Home Loans asked:


"In order to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units…"

Many times, people have heard of THDA and are confused, thinking that THDA is a certain loan type. In fact, it’s lending agency. All THDA mortgages must be insured by private mortgage insurance, FHA, VA or RECD And as these loans are intended for low to moderate income families or individuals, there is a income limit and acquisition cost limit. Also, you must be a first time homebuyer unless your home is in a targeted area.

Why is THDA so fantastic for a first time homebuyer? Well, it comes down to money. THDA offers a below market rate and will allow up to 100% financing. Have you been reading the papers lately? It’s not so easy to find 100% financing these days. Unless, that is, you’re a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies (if your loan type requires a down payment). If you have satisfactory credit and the home you wish to buy meets THDA’s standards, then you’re in business.

All THDA mortgages are 30 year fixed rate loans, so you needn’t worry about finding yourself with an ARM loan (adjustable rate mortgage) and a new payment you can’t afford in 3 years. And THDA allows lenders to only charge customers a standard 1% origination and .25% discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan, you can feel pretty certain that an unscrupulous lender can’t take advantage of you because THDA won’t let them. For so many people, buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.

If you do apply for a THDA loan, be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more, THDA asks for more – ensuring you qualify for its pretty awesome program. Sounds like a fair trade, if you ask me.

What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. I’ve heard that only about 1% of THDA customers actually pay this tax. That’s because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you, paying the recapture tax won’t matter much to you anyway. I’ve been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again, good things have to happen to pay the recapture tax. So, you shouldn’t be afraid of it.

More people need to hear about and take advantage of the THDA loan programs. It’s such a great product and really helps the community and the housing industry. If you’re a first time homebuyer or think you’re in a targeted area, make sure you ask about THDA to see if you would qualify for a loan. You won’t regret it!



ERNEST

IC asked:


When you want to buy a home you will generally need to look into home loans to see what your financing options are. You may have assumed, before you started looking into it, that there was just one sort of loan that people could get when they wanted to buy a home but when you start looking into it you will find that buying a home with a loan is much more complicated than that. There are a lot of different loan products out there for you to choose from and chances are you will not be able to navigate the world of loans all on your own. Instead, you may need to seek the assistance of a mortgage broker to help you understand what is what and also help you determine what sort of loan may be best for you and your specific situation.

Home Loan Basics

There are many different types of home loans for you to consider. You should try to learn about all of the different types of loans out there before you decide that one is or is not for you. The most common types of loans that you will find are the fixed rate loans. These loans are a great option for those that plan to stay in their home for more than three to five years. The reason for this is that the rate stays the same for the entire term of the loan. So, if you start off your mortgage with a 6% interest rate, it will continue to be 6% for the whole 10, 15, or 30 year loan term. This is a good idea if you plan to stay in the home for a long time because you will always be able to determine what your monthly payment will be.

Another very common type of loan that you will find is adjustable rate home loans. These loans are ideal for those that are planning on living in their home for less than five years. The reason why these loans are a great option for these people is because the interest rate starts off very low and then the longer you are in the home the higher it gets because it adjusts from time to time to meet the current market interest rates. Many people like these loans at first because they are very affordable but then if you stick with it, you can end up in trouble if you are unable to make your mortgage payment. The adjustable nature of the interest rate is what ends up getting a lot of people in trouble.

In addition, there are loans that are meant to refinance a home. Many people refinance a home to lower their mortgage payment, trade in an adjustable rate mortgage for a fixed rate, or get money out of their home to pay bills, update the home, or pay off debt. These home loans are for those that already have a home and would like a new one.

These are the basic types of loans but you should not confuse the type of loan for different loan programs. There are different loan programs that apply to different people based on where they live, how much money they make, how much they can afford, and what their credit score is. There are a lot of different programs out there for you to take advantage of, so shop around, learn all that you can, and then choose the right one for you.



EDDY