Gabriel J. Adams asked:




The HPLR mortgage program, available through your credit union, is just one more of the many ways your credit union is serving its members. HPLR stands for Home Loan Payment Relief, and is referred to as the “Helper” Loan program. Once you understand what it actually offers, you’ll see why the name is appropriate. The HPLR program is specifically for those first-time home buyers who are buying a residence they will live in themselves. HLPR loans can be used on single family homes, duplexes, condos, or even co-op properties. These loans are available to families whose median income is less than the median income in the geographic area in which they are buying a home. And sometimes, that limit is extended to a higher level in areas where it’s known to be much more expensive to live.

All the details of this program are available by accessing the link at http://www.cuna.org/initiatives/hlpr/hlpr_borrower.html. There is an extensive amount of information on the program at that site as well as a message from Dan Mica, Credit Union National Association’s president. (CUNA is Credit Union National Association).
To quote Mr. Mica, “Owning your own home is part of the American dream, and for too many low and moderate income families, it’s becoming increasingly hard to reach. The gap between the incomes of average families and the affordability of a first home is a problem. Credit unions believe the HLPR mortgage is an innovative solution that will narrow the gap.”

As usual, credits unions are living up to their stated purposes in offering these loans. They are aware that many first time home buyers would be priced out of the market today with out a program like HLPR. Using this program, first time home buyers can expect to realize savings of $1000-$2000 a year on their mortgage payments. Larger loans may be offered under a HLPR program than with conventional financing, too. That is, lenders may be willing to lend a larger percentage of the home’s value under the HLPR program.

HLPR loans are three-year adjustable rate mortgages. Generally, first time home buyers are people who will find their incomes also going up slowly over time. Further, the initial down payment buyers must make on a HLPR mortgage is only 3%—a far more manageable sum than the 10-20% required to obtain more traditional financing. Even better, the loan can go up only one percentage point a year, and is capped at only a 5% increase for the life of the loan.

First time home buyers are, by definition, new at understanding how home financing works. There are any number of mortgage programs in the marketplace which are far less advantageous to the novice home owner than the HLPR program. Some of these loans may increase far more quickly, or have far less favorable interest rate caps over the life of the loan. Sometimes mortgage lenders tempt first-time home buyers with interest only loans. Imagine the surprise and shock of some of these buyers when they realize they have not been paying down on the principle of the loan, and have been paying literally ONLY the interest owed on the money borrowed. Sure, the payments are lower, but you are not actually gaining any equity position over and above home appreciation.

This may seem like one of those “too good to be true” financial fairy-tales you may hear about from time to time. But it actually is as good as it sounds, and it is true. Credit Unions are committed to help this segment of their membership become home owners. It’s actually that simple. Think about it this way: if you, the consumer, find yourself with an excellent mortgage loan in a home you love, where will you go when it’s time to finance an automobile purchase or a new roof on that home? It’s likely you will come back to your Credit Union. And that’s the best place for you to be.

Delores

. . asked:


I have debt totaling 30,000. I own a home in which I have over 150k equity in. I want to pay this debt once and for all. What would be the smartest way to do this? Should I refinance, take a home equity loan or set up a payment plan? My mortgage rate is 5.375 so refinancing would put me into a new higher rate since rates have gone up. I also have access to $10,000 in my 401k that I could borrow. I just want to make the right decision here. Any help would be great! Thanks.

Jeff

Amos&Asher=MyBoys asked:


why is this?
we have to have a 6% assist and 3.5 percent down, which is fine but why do we need this on top of the mortgage, taxes, and insurance?!
we are buying our first home from my mother in law for 90k and the home is worth 160k so we are deff making out good but whats up is this a scam?
app by bank of america by the way.

Judy