mortgage reno: What You Need To Know

2007-03-08 10:33:40

( Financial )



Whether you need las vegas mortgage, nevada mortgage or mortgage reno, there are a number of key questions you should ask when you apply for a mortgage.

What guidelines to qualify for a mortgage reno loan:
Don’t expect a set plan that is perfect for every person and every situation. There are a lot of factors that need to be evaluated when determining what terms offer the best mortgage reno loan program for you. The following all play a part in evaluating the loan plan:
• The down payment and size of payment
• The interest rate
• Life of the loan
• Schedule of payments
• Amount of loan
• Other conditions and requirements.

Mostly, what determine loan guidelines are:
• Credit history
• Income
• Employment
• Assets and liabilities.

At the same time each loan program can have significantly different guidelines.

The Annual Percentage Rate?
This rate is important for you to make true loan cost comparisons. You will usually get this when you apply on the basis of truth in lending disclosure. This rate is usually more than the initial rate. It includes the lender’s fees.

What Points are charged? What Origination Fee will be charged?
It’s important to know how these affect your closing costs. You can lower your interest rate by paying discount points – prepaid mortgage interest. By paying some of the investor yield immediately, the long-term interest rate charge is reduced.

Discount Points: optional payments that lower the interest rate.
Loan Origination Fee: a percentage of your mortgage which is charged so that the loan application can be set up and originated.

Minimum Down Payment?
Your down payment affects:
• How large your payments will be
• The interest amount
• The type of loan
• Length of your loan
• Other conditions
• Other aspects to do with your life.

You need to pay certain types of money as a down payment and you need to prove the source of your down payment.

The options available for the down payment should be considered in terms of their effect on other loan terms:
• Immediate cash for savings
• Accumulating cash by making some sacrifices (reducing debt, getting a second job, forgoing vacations, cutting expenses)
• Selling property or investments
• Stocks, mutual funds etc
• A gift
• Charitable assistance
• A zero down mortgage.

When you decide how big a down payment to make, bear in mind that the greater your down payment, the lower your payments will be and the shorter the life of your loan. This means your interest will be lower and the overall terms will be better.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.