Mortgage Loan Options Going Exotic

Mortgage Loan Options Going Exotic

Mortgage Loan Options – Going Exotic
In the​ past,​ a​ person had limited options when borrowing money for a​ home purchase .​
These days,​ there are exotic mortgage loan options that satisfy just about every borrowing need .​
Creative Mortgages
Getting a​ loan for a​ home purchase can be very stressful .​
What if​ you​ don’t qualify? How humiliated will you​ be? These days,​ there’s no reason to​ worry .​
The mortgage lending market has a​ solution for just about everyone .​
1 .​
Do the​ Two Step .​
the​ Two-Step Mortgage is​ a​ mixed interest rate loan .​
Essentially,​ the​ loan provides a​ lower fixed interest rate for a​ period of​ 5 years or​ so and then adjusts to​ a​ new rate at​ the​ end of​ the​ period .​
The new rate is​ dependent upon the​ interest rates being charged at​ the​ time of​ the​ change .​
This loan can be helpful for borrowers who are squeezing into a​ loan since the​ initial period tends to​ have a​ lower interest rate than a​ straight fixed interest loan .​
2 .​
Graduated Payments – Graduated Payment Mortgages are loans that,​ well,​ have a​ graduated payment schedule .​
Depending on​ the​ specific lender,​ the​ first five to​ seven years of​ mortgage payments will be 10 to​ 20 percent lower than a​ fixed rate mortgage .​
After the​ prescribed time,​ the​ payments will actually be higher than a​ fixed rate loan .​
The advantage of​ this loan is​ two fold .​
First,​ it​ lets you​ borrow more money than a​ fixed loan because you​ can qualify for the​ lower initial payments .​
Second,​ the​ loan is​ optimal if​ you​ are expecting to​ sell the​ house within the​ initial five-year period after significant appreciation .​
3 .​
Sharing Appreciation – Shared Appreciation Mortgages are typically provided by private investors and even family members .​
In essence,​ you​ borrow money to​ purchase a​ home by agreeing to​ share a​ percentage of​ future appreciation in​ the​ home with the​ lender .​
Private lenders can want as​ much as​ fifty percent of​ the​ appreciation,​ but they will significantly lower the​ interest rate on​ the​ loans .​
SAMs should really only be used if​ you​ have horrible credit and no other options .​

There three loan options are only the​ tip of​ the​ iceberg when it​ comes to​ mortgages .​
If you​ need to​ get creative,​ find a​ reputable mortgage broker in​ your area and see what they can come up with for you.

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