find mortgage and refinancing information Akron Ohio

Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

 

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later


There are great mortgage loans for people with poor credit, and yes, you can still save thousands of dollars. In order to receive preferential treatment for mortgage professionals, you'll need a credit score of 680 or better (this is considered A credit). If you have a score that is less than 600, you'll fall into a sub-prime loan category. Now, you'll need to get creative, in order to get your mortgage and not lose a fortune.

A sub prime lender will offer you virtually any type of loan that a conventional lender will offer, but you'll pay a much higher interest rate, as a risk premium. In other words, these lenders consider people with low credit scores risky borrowers, because they may have some poor payment history. Lenders like people who pay all their bills on time, even though it is not at all uncommon for people to occasionally miss a payment for one reason or another. So, the sub prime, or non-conforming, or niche, lender says, "We'll take the risk, but we want to make a lot more money, in order to do it." Don't worry. You can get it done, and improve your situation to refinance at a better rate later.

Let's assume you have poor credit, and you want to purchase a house for $100,000. You also have only five percent to put toward a down payment. You bring a twofold problem to the lender - poor credit and a very high loan-to-value, or LTV. You need to borrow $95,000 on a $100,000 home, so your LTV is 95%. As a general rule, lenders like purchasers to bring 10 to 20 percent of their own money to the table, again lowering the risk for the lender; they feel that the more money a borrower has in a deal, the less likely she is to default. So, your mortgage professional will find his best sub-prime lender, and take your application to him.

Now, if your debt-to-income ratio (amount you owe monthly vs. gross income monthly) is 50% or less, and your credit score is above 500, you'll likely get your $95,000 loan. Your interest rate, however, will be between 10% and 12%, creating a very large monthly mortgage payment. So, how are you going to win the mortgage game, in this case? You have two options.

First, you can improve the loan by reducing the LTV. In other words, instead of taking a loan at 95% loan-to-value, you apply for a first mortgage of $80,000 (80% LTV) and a second mortgage of $15,000 (15% LTV). Here's how you save money. Instead of borrowing $95,000 at, let's say, 12%, with a payment of $977, not including taxes and insurance, you have a loan for $80,000 at 8.75%, for a payment of $629. Your second mortgage is at 13%, with a monthly payment of $166. Now, your combined monthly mortgage payments with two loans are $795, saving you $182 monthly over the first mortgage at 12% and $2,184 each year.

The second option is to take an adjustable rate mortgage, which offers great savings, just like conventional loans. If you take a 2-year ARM, which sub prime lenders offer, you might be able to get a rate of 7% or 8%, instead of the 10% you'd likely get on a 30-year fixed loan. You might also talk to your mortgage professional about combining option one and two, and taking an ARM on your first mortgage at 80% LTV and still taking a second mortgage for $15,000. This could save you even more.

Get a free mortgage course to learn more.

Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Thu. January / 18 / 2018

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Marketplace.org

The home equity loan interest deduction is dead. What does it mean ...
Marketplace.org
Fewer people might take out home equity loans as a result.

and more »


CNBC

Mortgage refinance applications surge 9 percent as rates fall back
CNBC
Total mortgage applications rose 4.7 percent last week, driven by applications to refinance.

and more »


Marine Corps Times

Experts: VA loan 'churning' can hurt vets ... and the mortgage market
Marine Corps Times
Experts are concerned about so-called home loan 'churning' practices that may be harming VA borrowers financially. (Mike Tolstoy / Istockphoto). The abusive practices of some lenders are hurting some veterans financially, experts told House lawmakers ...



Coronation Securities, Stanbic IBTC, Capital Asset lead OTC ...
Naija247news
Coronation Securities Limited, Stanbic IBTC Stockbrokers Limited and Capital Asset Limited led participating institutions at the NASD OTC Securities Exchange in 2017-the over-the-counter market for trading in securities of unlisted public limited ...

and more »


TheStreet.com

Cruel Ways Big Banks Are Ripping Off Their Customers
TheStreet.com
based Born to Sell, recently applied for a mortgage refinance loan at Citibank (C) . Little did he know that he'd get the short end of the stick, and in a big way. Scanlin checked every item off on the mortgage process list, paid $15.85 to have a ...



Bankrate.com

4 ways to get the best mortgage refinance rate
Bankrate.com
If you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your existing home loan for a new one. Here are some tips for getting the very best refinance rate. 1. Polish up your credit ...

and more »


West Is Best for Credit Union Growth
Credit Union Times
A tight labor market. Employers are having increasing difficulty finding workers, which will be a limiting factor for the economy. A sellers' housing market. The supply of homes in most markets are reaching historic lows and could tighten further as ...



Prospect Financial Group, Inc. Donates to Wells Fargo's Holiday ...
The Daily Telescope
San Diego, CA, December 29, 2017 -- Prospect Financial Group, Inc., a leader in the mortgage refinance industry, was happy to donate this holiday season to Wells Fargo's holiday Food Bank program.Wells Fargo is working with United Way Worldwide to help ...

and more »


Fidelity 1st Funding Offers Refinance for a Relatively Low Interest ...
Digital Journal
Digital Journal is a digital media news network with thousands of Digital Journalists in 200 countries around the world. Join us!

and more »


Real Estate Weekly

TRANSACTIONS: Eastern Union Funding arranges $50M medical mortgage; GCP secures $40M for Brownsville building
Real Estate Weekly
A new mortgage in the amount of $7,500,000 on a 96-unit multifamily property located on Ocean Avenue in Brooklyn, NY. The loan features an initial rate of 3.375 percent and a five-year term. Charles Grussgott and Michael Helmreich negotiated this ...


Google News

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

Click here to
OfficeJax free ad space available here

Find used office equipment in Ohio at www.OfficeJax.Has.It

Find the best fleamarkets at www.FleaMarketWorld.Has.It

www.Akron.Has.It

Find electric powered vehicles at www.NoGas.Drives.It

Akron City directory

Free Automatic Link Exchange

Flea Market World

Find homes for rent
in Akron Ohio
www.homes4rent.has.it

iphone-4-less below wholesale prices

 

Place your AD here. Click here for more details.

Click above to place your AD here

[Back to Top]

Ohio RealEstate

auction news and listings for Akron, Ohio

Akron crafts and hobby news center

best home remedies and do it yourself tips

Akron currency trading

Akron Ohio pet news

Advertising and promotions Akron, Ohio

The Akron blogging news center

Akron Ohio web site design news

Akron Mortgaging and refinancing

Web site design tips

 

HOME | SITE MAP
© 2012 all rights reserved



Increase pagerank with HitsSurfer

free page rank checker and seo evaluation tools 

first second ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers quotes florida houston gmac washington interest only 2nd software debt consolidation reverse senior equity texas maryland options lending bad credit  option one ameriquest chase first banks emc residential california miami dallas est branch marketing home company commercial yahoo online bad credit low credit no credit