Mortgage Loan - Home Loan - Information

Welcome to the mortgage loan information page. We are here to provide information about companies who offer home loans for all kinds of situations whether you want a standard mortgage, a bi-weekly mortgage, free quotes, bad credit home loan, low credit score loan, sub prime loan, and much more.

IMPORTANT! if you already have a subprime adjustable rate loan (ARM) that is going to adjust upward, then you may still have the opportunity to refinance or restructure your loan! You should do this BEFORE the rate adjusts -- contact your lender directly and see what they can do. They would much rather have you make your payments on a lower amount than drive you into bankruptcy! BE PROACTIVE -- IT HELPS!

Keep reading...

What are Subpime Loans?

Subprime loans are one way for you to get into the home you want at today's price. If you already own a home, a subprime loan can give you an opportunity to clean up your credit and ultimately refinance into a lower rate at a later time. If you have a mortgage, you can look at refinancing more than what you currently owe on the house and get cash back for the equity you already have in the home. This cash out could be used to pay off higher rate credit cards, bankruptcy, foreclosure or collections and liens. It could be a good way to clean up a troubled credit history, save money each month and start rebuilding your credit worthiness.

Whether for a purchase or refinance, subprime loans should typically be used as a short term solution, approximately 2-4 years. During that time, you can work to clean up your credit and qualify or a refinance into a lower risk, lower rate loan. In today's credit-tight environment, the supply of subprime lenders is dropping, but there are still some out there -- espeically if you can prove you have regular and stable income and can make your payments.

What are Balloon Mortgages?

Balloon loans are short term mortgages that have some features of a fixed rate mortgage. The loans provide a level payment feature during the term of the loan, but as opposed to the 30 year fixed rate mortgage, balloon loans do not fully amortize over the original term. Balloon loans can have many types of maturities, but most balloons that are first mortgages have a term of 5 to 7 years.

What is a Fixed Rate Mortgage?

A fixed rate mortgage is the most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will stay the same.

Fixed rate mortgages come available for 30 years, 20 years, 15 years and even 10 years. There are also biweekly mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)

Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.

During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal. A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.