Month: June 2018

Why Are Investment Property Mortgages More Expensive?

If you are in the market to buy an investment home or second home, you should know that your mortgage terms will be different. By different, we mean more costly. There’s one main reason lenders charge you more – it comes down to the risk. Compare Offers from Several Mortgage Lenders. If you are not living in the home that you borrow the money to buy, you are more likely to walk away from it should you end up in financial distress. If you own two homes – a primary home and one you rent out and you lose...

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What Does a Demand Feature Mean in a Mortgage Loan?

Did you pay attention when you signed your closing documents? Do you know the fine print that was provided to you? If so, do you know if your loan has a demand feature? Compare Offers from Several Mortgage Lenders. Don’t worry if you don’t know, as many borrowers are not aware. It is something you should understand though and moving forward, you should consider if your mortgage loan has this feature. THE DEMAND FEATURE DEFINED The demand feature means the lender can ‘call’ your loan at any point. This means the principal and interest due at that point. But...

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Piggyback Loan or PMI – What’s Better?

If you are unable to put 20% down on the home you purchase, you have two options – pay PMI or take out a piggyback loan. Either way, you help lessen the risk the lender takes by providing you a loan without a large down payment. Both choices have the same end result – you secure more than 80% of the value of the home in home loans. Aside from that, however, there are many differences. There is no right or wrong answer regarding which situation is right – it depends on your exact situation and how you want...

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Risks Involved in Buying a House With Unpermitted Renovations

Buying an existing home can be exciting and scary at the same time. While you would hope the seller discloses everything there is to know about the home, that’s not always the case. One area they often cover-up, whether knowingly or unknowingly, is with unpermitted renovations. If the sellers did renovations themselves or even had a contractor do them without checking with the city first, it could leave you with unpleasant repercussions as the new owner. Compare Offers from Several Mortgage Lenders. Before you buy a home, make sure you specifically ask about any renovations the sellers completed on...

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