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NewlyMrs
Laugh-Live-Love LIFE!
Member since 10/06 14432 total posts
Name:
Jennifer
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Can anyone rec a website that explains the various morgages available?
This is totally new to me and overwhelming.
Does anyone have any useful websites or advice on how to choose a morgage?
TIA!!!!
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Posted 6/26/07 3:13 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: Can anyone rec a website that explains the various morgages available?
Lending Tree
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| Posted 6/26/07 3:21 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Can anyone rec a website that explains the various morgages available?
Different banks call different mortgages all kinds of things.
Some of different loans out there:
Fixed: where all your payments are the same over the life of the loan.
Adjustable Rate (aka ARM): start out at a lower interest rate and then after a certain number of years, your rate readjusts and (usually) goes higher.
Balloon: Like a fixed until the very last payment where you have to pay the rest of what is owed, usually a lot. Think of it like a car lease - you pay less each month and then if you want to buy it out at the end you can pay the lump sum of what is still owed on the car or give it back. So you can either sell or or refi if you have a balloon and don't want to pay at the end.
Interest Only (I/O): Pay only the interest for a certain number of years. Benefit: your payments are lower during those years. Con: you are not paying any principal, therefore you gain no equity when you make your payments.
Well. thats my take on some of the different kinds of mortgages! Good luck!
Its a good idea to go to a bank or a mortgage broker to discuss all your options and what is best for you!
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| Posted 6/26/07 3:30 PM |
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NewlyMrs
Laugh-Live-Love LIFE!
Member since 10/06 14432 total posts
Name:
Jennifer
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Re: Can anyone rec a website that explains the various morgages available?
what about the 80/20? Are there pros/cons to this?
This weekend we plan to go to some banks.
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| Posted 6/26/07 3:34 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Can anyone rec a website that explains the various morgages available?
Posted by NewlyMrs
what about the 80/20? Are there pros/cons to this?
This weekend we plan to go to some banks.
80/20 is actually two loans, which are both usually fixed. The first loan is your mortgage, 80% of the total amount of the house.
The 20% is your "down payment" so you don't have to pay PMI on the first one. This can be done in the form of a second mortgage, or a home equity loan. There may be other options, but I'm not sure what they are.
There are all kinds of variations of an 80/20 - 75/25, etc. If you are looking to do 100% financing, there are very limited options these days of who you can go to, and you have to have excellent credit.
FM me if you have any questions about this, I'll explain more.
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| Posted 6/26/07 3:52 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: Can anyone rec a website that explains the various morgages available?
Posted by NewlyMrs
what about the 80/20? Are there pros/cons to this?
This weekend we plan to go to some banks.
We have an 80/20 Mortgage...80% in a reg Mortgage and the 20% in a HELOC. We got it thru DH's company.
The only thing with the second mortgage you could get an adjustable rate...the only thing that is good about the second mortgage is that you will avoid paying MI.
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| Posted 6/26/07 5:31 PM |
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SweetCin
My green-eyed boy
Member since 5/05 13499 total posts
Name:
Cin
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Re: Can anyone rec a website that explains the various morgages available?
Posted by Nicole728
Posted by NewlyMrs
what about the 80/20? Are there pros/cons to this?
This weekend we plan to go to some banks.
We have an 80/20 Mortgage...80% in a reg Mortgage and the 20% in a HELOC. We got it thru DH's company.
The only thing with the second mortgage you could get an adjustable rate...the only thing that is good about the second mortgage is that you will avoid paying MI.
But one of the negatives is you have to pay 2 closing costs.
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| Posted 6/26/07 9:13 PM |
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