Your Dream Home: A Comprehensive Guide to Buying a House, Condo, or Co-op (Money America's Financial Advisor)
Format: PDF / Kindle (mobi) / ePub
The experts at "Money" magazine offer sound advice on everything involved in buying a house, condo, or co-op in this clear, concise guide. This book helps consumers construct a winning game plan when purchasing a home that's also a financial investment.
rates and fees directly. Tables 8-1 and 8-2 contain questions and explanations that will help clarify your loan shopping. TABLE 8-1 Fixed-Rate Mortgage Comparison Shopping Chart Lender 1 Lender 2 Lender 3 1. Company name/phone number: Loan officer name? 2. Mortgage type: 3. Interest rate and points: Interest rate quoted on__/___/__is? (day) (month) (year) How many points quoted? Annual percentage rate? 4. Interest rate lock-ins: Upon application? At approval? Lock-in costs? Effective how long?
midsize banks and savings and loan associations, which typically hold in their own portfolios the loans they make. (For this reason they are sometimes called portfolio loans.) These midsize institutions are characteristically the most nimble and aggressive players in the adjustable-rate market. If you can snag a decision maker with some authority, typically a branch manager, you might be able to haggle your way to an attractive, custom-cut deal—but it will probably cost more than a conforming
them with lower down payments if the homeowner buys private mortgage insurance (PMI), which protects the lender if the homeowner defaults on the loan. You will pay for PMI in two ways. There is an up-front premium (usually 0.5% of the loan amount) paid when the loan is originated. And there’s a recurring annual premium (often 0.35% of the declining loan balance), one-twelfth of which is paid monthly. It’s a myth that PMI will be removed automatically from the loan at some predetermined time. You
cost $75–$150 and be done in several hours. That’s substantially cheaper and faster than a traditional report, which might cost $250–$500 and take several days. Your banker probably won’t accept it, but a quick evaluation can serve as a sharp reality check if you’re concerned about overpaying and the seller won’t budge on the price. Since these “drive-by” appraisals are often based on a quick curbside evaluation, plus price data on comparable properties culled from databases, they can come in
After taxes, as in net income. No-documentation loan: A program offered by some lenders that requires less extensive verification than a standard loan approval process. Usually available only to borrowers able to make relatively large down payments. Open listing: A listing agreement under which any broker who sells the property is entitled to a commission. Owner financing: A purchase in which the seller provides all or part of the financing. Payment cap: A provision of some ARMs limiting how