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Thank you for tuning in this is the TLC Morgan show or discussing Colorado Springs mortgages. If you’re looking for a mortgage in Colorado Springs, we can help. We pick up in section 7.7. What’S a balloon mortgage balloon mortgage is alone whose entire balance becomes do after a predetermined. Balloon mortgages are recognized by their name such as 5:25 or 7:23. In this example, the amortization. Is 30 years, either 5:25 or 7:23 for the purposes of calculating monthly payments. But after 5 or 7 years, the remaining principal balance becomes due to the lender. The payment balloons term means suddenly comes due in full balloon mortgages or similar to a hybrid, in that their initial interest rate is fixed for either the 5-year or seven year., Colorado Springs Mortgages But instead of turning into an adjustable rate mortgage, the entire note comes due balloon mortgages offer Below Market rates for the initial term, most balloon mortgages have an internal reset feature that accommodates borrowers. He don’t want to pay the entire balance after 5 or 7 years when the mortgage is reset an index. Plus a margin will determine the fixed rate payment for the remaining 25 or 23 year, write 23 year.. If a balloon is a Freddie Mac loan, the index will typically be a Freddie Mac index, plus a margin of anywhere from half percent to 1 %. Keep this in mind when looking for a Colorado Springs mortgage section 7.8, what is a buy-down, a buy-down, either temporarily or permanently reduces the note rate on a mortgage. A temporary buy-down is sometimes called the two-step or a 2-1 by down weather is a lower rate. Colorado Springs Mortgages Lower start rate for year, one with a higher rate for year 2 through 30 by Downs, can help borrowers who might have been had trouble qualifying at 8 %, but can qualify at the lower, buy down rate of 7 % temporary buy-down for nothing more than prepaid Interest to the lender, expressed as a note rate they can be applied to most any fixed rate mortgage in the market. Temporary by Downs can also be for 3 years. Called 321 by down. 321 could have a start rate of 76 % for year, 1, 7 % for year 2 and 8 % for years 3 to 30.
Temporary buy-down scan be a good choice if you expect to have an increased income in the next year or two, for example, if you are starting a new job or practice how to calculate a temporary buy-down, you need to take your principal balance and calculate a monthly Payment using a current market rate with no points the current rates for 7 % in your loan amount of 300,000, then your monthly payment would be 1995 using a 30-year fixed rate for a 2-1 by down drop. The rate from 7 % to 6 %. Then again calculate the monthly payment, which would be 1798 subtracting out from 1995 gives you 197. If you multiply that 197 by the 12 months, you have the 6 % rate, you get the amount, you must pay, the lender for the temporary buy-down or 2364. Colorado Springs Mortgages Keep this in mind as an option for Colorado Springs mortgage. You know I have a choice of paying the bat tax deductible interest in the form of cash closing or you can adjust your interest rate to accommodate the interest by dividing the buy down interest of 2364 by your loan amount of 300,000. You get about 80 basis points or almost .8 of a discount point. If you increase your rate by about a quarter percent, your lender will accept the higher rate in lieu of cash payment from you, temporary buy-down, Colorado Springs Mortgages Zara effective if you’re either having trouble qualifying at higher Market rates or, if you simply want lower rates to start out with The other type of buy-down is a permanent by which is nothing more than paying discount points to get a lower rate. It can be applied to either a fixed rate or adjustable one. There is difference here. Temporary and permanent by Downs are different. Keep this in mind when you’re shopping for a Colorado Springs mortgage, section 7.9, apart from choosing fixed or adjustable rates.
What types of Loan program should I consider? Besides deciding between a fixed-rate, an adjustable-rate, you also need to examine the types of loans available to you. Most loans are falling to two types: conventional and government conventional loans secured in back by lenders. What government loans carry a governmental guarantee, conventional loans and mortgages that are underwritten to Fannie Mae or Freddie Mac guidelines, as well as jumbo loans, government, mortgages or loans guaranteed by the Department of Veterans Affairs in the federal housing Administration, section 7.10? How are limits on conventional loans set Fannie and Freddie Mac’s at the limits? The same way every year by reviewing the average home price from October to October? Keep this in mind when you’re looking for a Colorado Springs mortgage if the average price of homes in the United States is ,000 in October in the year later, that same report shows that the average home price is increased to 165000 or 10 %. The conforming loan limit for the following year will be an increase by 10 % by both Fannie Mae and Freddie Mac in 2007, Fannie Mae and Freddie Mac maximum loan amount for a single family. Residence is 417,000. This limit is actually 50 % higher in the high-cost areas of Alaska, Hawaii Guam and the US Virgin Islands. Colorado Springs Mortgages Anything above the maximum is called a jumbo mortgage, because loans are under written to the same standards. Competition is encouraged, which helps to drive rates lower for the consumer. Conventional mortgages are the ones, are one of the most common types of mortgages are available for most any mortgage lender or mortgage broker mortgages or like any other product or service in the United States. If there are more people selling the same thing, the price will ultimately come down section 7.1, one who are what are Fannie and Freddie. We’Ve mentioned Fannie Mae and Freddie Mac earlier, but let’s take a moment to see what they’re real purposes are Fannie and Freddie are familiar names of the Federal National Mortgage Association, Fannie Mae and the federal Home Loan mortgage Corporation. These two programs are quasi-governmental siblings because one, even though they are corporations whose stock is publicly traded, they are also guaranteed by the Full Faith and collateral of the US government.
This is certainly a factor when applying for a Colorado Springs mortgage number to they provide mostly the same function. They were both formed by the federal government to provide liquidity in the mortgage Marketplace, lenders loan money and charge you for it. That’S why they’re in business? What if a lender runs out of money to lend Fannie Mae was formed back in 1938 to purchase loans that were backed by the US government’s newly-created Federal housing Administration? Before there was Freddie Mae Fannie Mae, when lenders ran out of mortgage money to lend, they only had a few choices, they could a turn to their Bank vaults and lend out money they had set aside for various other purposes, be offered higher savings accounts savings rates To attract new money or see take a certain set of Hud loans and sell them. Keep this in mind when thinking about a Colorado Springs mortgage typically, once a mortgage, it was placed, it stayed there until it was paid off, but Fannie Mae. His job was to provide a little cash flow on the mortgage Market by buying loans for mortgage lenders that within free up cash for them to lend again. In 1968 Fannie Mae reorganized begin purchasing non-government guaranteed loans as well as FHA ones. The government spin-off, which is called Jenny, May government National Mortgage Association buys VA and FHA Loans. Fannie Mae then concentrated on non-governmental or conventional mortgages. Keep this in mind when you’re applying for a Colorado Springs mortgage