Looking For A Home Loan? Here's How To Begin...We'll Provide You With News, Information, Resources And Articles About Loans. We'll Cover Home Loans, Mortgages, Second Mortgages, Home Equity Loans, And Refinancing. As
you explore this site, you'll discover...
|
Hot Topic: Tips On Getting Your Mortgage Loan Approved
|
|
How Choosing The Wrong Loan Program Can Wipe You Out
|
|
7 Critical Questions You Must Answer Before Refinancing
|
|
Insider Secret: 3 Things Your Lender Will NEVER Tell You
|
|
Home.LoanBegin.com
Presents Hundreds Of Articles, Tips, And Resources About
Home Equity Mortgages, Refinancing Home Mortgages, And Home Mortgage
Loans! Updated Daily.
|
|
 |
|
|
Mortgage Loan Tips.
|
Why some people almost always get the lowest interest rate on their mortgage - for the least points - and No Junk Fees!
|
|
 |
| |
Home Buyer Defense Guide.
|
Real estate insider advice to help homebuyers avoid common mistakes when buying a home.
|
|
|
| |
Mortgage Secret Codes Revealed.
|
A step by step guide on how to take control of the mortgage process and also How to beat the brokers and avoid mortgage ripoffs. |
|
|
| |
Short on Cash? Get a Mortgage with a Buy Down
Author: Syd Johnson
A buy down is an alternative financing technique where you make significantly lower payments for the first few years of the loan, and make up the difference with larger payments in the later years of the loan. The initial payments might be interest only or less than interest payments, so you can expect to pay a much larger monthly fee when you actually start working on the principal.
Loan structure
If you get a temporary buy down, the seller might provide the loan with a very low interest rate and no up front fees or points. This will make your loan package extremely cheap. Your monthly payment will be significantly smaller than the actual amount required to pay off the monthly interest and decrease the loan principal.
Then according to the contract the interest rate is increase by a small percentage each year, until your payments level off and cover both monthly interest payments and a reduction in the principal.
By the time the loan is actually paid off, you will have a very large monthly bill because all of the fees and points that you didn’t pay up front were rolled over into the loan. You didn’t skip anything you just decided to pay it all later.
Who gets buy downs?
Buys downs are perfect for the upwardly mobile. That is singles or couples who are purchasing their first home, but expect a rapid or substantial increase in their income within a couple of years.
Unlike a fixed rate mortgage your payments will be steadily increasing over the years. In addition, unlike an adjustable rate mortgage, you will find yourself paying way over market rate for the last few years of the loan.
These types of loans are usually setup as 15-year of 30-year deals. The big advantage of course is that you can get a lot of house for very little money up front. However, the seller or lender will reap a much higher rate of return on your loan than he or she should get on a fixed rate or regular adjustable rate mortgage.
It’s a great deal in the beginning, but make sure you will have the income later on to cover the large payments plus your other household expenses.
About the Author
This article may be freely distributed as long as there's an active link to http://www.rapidlingo.com
Syd Johnson
Editor
Article Keywords:
Home Loans
|
 |
|
|
As you may know, I have a very deep passion for real estate and mortgages. In
fact, this website is a true labor of love for me.
As publisher, one my many duties is to review the many books, programs
and courses about real estate and mortgages that are on the market today. I’ll
be honest with you. Most of them are garbage. (Although
I do strongly recommend the programs in the “Must Have” box
above).
But, let me tell you, when I came upon the following headline, I new
I found a winner…
“Learn How To Quickly Build At Least $40,000
Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less”
-Without Making Biweekly Mortgage Payments-Or Changing Your Current Mortgage.
Now, the reason I knew it was a winner was because of the name behind
the headline. Craig Romero. Many consider Craig to be one
of the true geniuses in our field. I have a lot of respect for
him, and I
urge you to drop what you are doing right now and click the link below... |
|
|
|
|
Continue
Reading... 