Comments on: Loan Choice Home Loans – Home Loan & Mortgage Brokers Bad Credit Guaranteed Personal

By: Not Of This World - N.O.T.W -

Not Of This World - N.O.T.W - — Thu, 31 Dec 2009 19:08:34 +0000

Your loan officer might be right about the two loans. This is common in the mortgage industry.

One mortgage is for 80% of the sale price and the other is for 20% of the sale price.

The reason for the two loans is to prevent you from paying the dreaded Private Mortgage Insurance (PMI). This is a fee attached to your mortgage payment that covers any mortgage that exceed 80% of the sale price.

This is not a bad choice if you know and understand how it work. You should get your loan officer to explain how it works, the monthly payments, if you have an adjustable or interest only mortgage and other things about the mortgage.

You should have your loan officer explain all the variables with your mortgage so you can make an intelligent decision as to if this mortgage fit your financial situation at the present time.

If this mortgage does it makes sense. If not then it does not make sense.

So make sure you understand all there is to know about the mortgage you are getting before you sign your loan docs.

After you sign your loan docs it is too late to say I did not read the loan docs, I did not understand I was getting two mortgages, I did not know I was getting an adjustable mortgage.

So make sure that the loan docs say everything that you discussed with your mortgage broker about the monthly payments, interest rate, terms and amortization.

If no stop signing and call your loan agent to get an explanation.

Once you sign the loan docs you and you alone are responsible for the monthly mortgage payments.

I hope this has been of some use to you, good luck.

"FIGHT ON"

By: Man M

Man M — Thu, 31 Dec 2009 12:55:11 +0000

The only problem this could cause is if the child actually grows up and moves out on their own. With them on your mortgage they will have a harder time qualifying for a loan.

BTW, 23 is NOT a child! Unless they are still in college they should be in their own home by now.

As far as "in case of death", the "child" owns 1/3 of the property. If there are other heirs they are still entitled to their share of the other 2/3's. The "child" will also still need to come up with funds for any debts against the estate. They do not have to refinance, they can just keep making payments on the mortgage, but if they need to take money out of it to pay for debts they may not qualify to refinance on their own.

By: Steve-o

Steve-o — Thu, 31 Dec 2009 00:37:49 +0000

By: to_the_hurricave

to_the_hurricave — Wed, 30 Dec 2009 12:12:04 +0000

Well, home equity loans vs lines of credit are typically fixed. The APR will definitely save you money on a home equity loan vs your credit cards. I would just make sure the costs to do your loan are minimum to none, otherwise, if it costs you a couple thousand or more, then your not really doing yourselves any favors in the short term. Companies like BofA and Countrywide are offering zero closing cost products and are highly competitive so you may want to start there. Also, you may want to consider paying your mortgage once every 2 weeks by splitting your regular mortgage in half and sending in each half amount on the 2 week mark. Once you refinance or if you refinance, you might want to get the new mortgage oo both mortgages set up in this way. One last thought on the subject – if you have a low and better interest rate on your primary mortgage (than what you can get in today's market), don't refinance for a higher rate. Take out a second mortgage instead. Good luck!

By: NewFather

NewFather — Tue, 29 Dec 2009 15:45:40 +0000

yes!

By: Phyllis J

Phyllis J — Tue, 29 Dec 2009 09:03:20 +0000

If you own the house outright and need an equity loan it's just a matter of talking with a bank or some other loan specialist and applying for a loan with a certain value of the house as collateral. Essentially you will end up taking out a small mortgage (or what ever size you want/need) up to the value of the house.

By: ncelkin

ncelkin — Tue, 29 Dec 2009 04:39:40 +0000

If you take the 10.2% you will pay $11,650 over 36 months
If you take the 8.25% you will pay $11,322 over 36 months

The cheaper one sounds like the right one based on the information you have provided. However, if the home equity line of credit or the e-loan has additional fees you need to add that to these totals. That will tell you which one is cheaper. Some other things to consider. Is there a way to pay it off early? Is there a prepayment penalty? Is one or the other more of a hassle to deal with?

Good luck. Hope this helps.

By: lu lu

lu lu — Mon, 28 Dec 2009 15:40:21 +0000

It's not easy, and without more information I cannot give you direct advice. But visit the mortgage Professor – you'll find a link to his website on mine.

See source pages below.

Good luck!

By: NewFather

NewFather — Mon, 28 Dec 2009 14:41:29 +0000

I used to be a home loan originator. Get your monthly debt load to it's lowest point possible to qualify for more of a house payment. So yes, a 30 year plan for your student loans would make an overall lower monthly payment.

When you look around you and see these neighborhoods full of houses in this price range and the people who own them,,,,just know that they qualified under different conditions than you will have to qualify for now. Lenders look for a debt to income ratio. Higher debt to income ratios were allowed before the sub-prime mortgage meltdown.

When you use the online calculators be sure that they factor in home owners insurance and property taxes too. Email me if you want more clarification.