Ditech : Zero Down 80 20 Mortgage Loans: How to Purchase Your Home with No Money Down

If you are a homebuyer lacking the necessary 20% down payment to purchase you home, an 80/20 mortgage could get you the financing you need. An 80 20 mortgage is basically two loans covering 100% of the purchase price. Here are the basics of 100% financing to help you decide if this type of loan is right for you.

The 80 20 mortgage is actually two loans covering 100% of the purchase price. Your primary mortgage will cover 80% of the purchase price; the remaining 20% will be a second loan often referred to as a “piggyback” loan. This type of mortgage has the additional benefit of not requiring Private Mortgage Insurance. Private Mortgage Insurance (PMI) is an insurance policy that many borrowers are often required to purchase that can add hundreds of dollars to your payment amount.

Another advantage of a piggyback mortgage is that the loan typically comes with a fixed interest rate. You may have the option of taking out a line of credit for your second mortgage; if you take the equity line of credit your loan will have an adjustable interest rate. The interest rate on your second mortgage will be higher than your primary mortgage because this lender assumes a greater risk.

Ditech : Buy to Let Mortgage Lender Network: An Advantageous Financial Congregation

Buy to let mortgage lender network in the UK is expanding as more and more people are becoming aware of the advantages associated with buy to let mortgage. Buy to let mortgage is a good investment opportunity. You can take mortgage and purchase some property with an aim to earn rental income or capital growth over a period of time. You can also use the rental income in paying off the mortgage.

In UK, there exists a large buy to let mortgage lender network which helps you out in availing buy to let mortgage at competitive rates. You need to put some property as collateral which may be your house, land or any other premises. The documents relating to the title of the property remains with the mortgage lender but the possession of the property always remains with the borrower and he can use it anyway. Once the mortgage is repaid, the borrower gets back the documents.

Since buy to let mortgage is a secured loan, it brings in many advantages for the borrower. You can get extended repayment period, low rate of interest and smaller installments. However, buy to let mortgage involves the risk of repossession in case you fail to repay the installments in time.

A large buy to let mortgage lender network helps you in getting mortgage at cheap rates. You can advantageously utilise the existing buy to let mortgage lender network by requisitioning online quotes. Compare these online quotes from different mortgage lenders and select the best mortgage deal.

Ditech : Why You Should Use A Mortgage Calculator To Understand The Mortgage Amortization Process

Mortgage amortization is often a mystery to the consumer. After all, they oftentimes watch as loan officers whip out their calculators and spill out complicated numbers in record time.

But most consumers, unless they work in an industry related to the home buying and mortgage lending process, do not understand how loans are amortized. That’s okay—as a consumer it’s really not necessary for you to fully understand the amortization process and how your monthly mortgage payments are determined.

However, it is important, if you are seeking a home mortgage loan or if you already hold one, to have a general understanding of mortgage amortization and how to figure monthly payments.

In short, by having a general comprehension of mortgage amortization, you will be a more informed mortgage consumer.

What Does It Do?

When a mortgage loan is amortized, the amortization schedule is what will calculate the amount of your monthly mortgage payment. A normal, or standard, mortgage amortization will allow for the monthly mortgage payment to cover all interest accrued on the loan in the last thirty days since your last payment as well as a portion to be applied to the original principal balance of the home mortgage loan.

By following the mortgage amortization schedule, the borrower is paying off the balance of the mortgage loan principal, a little bit each month, and building equity into his home.

It is not necessary for the mortgage consumer to know the mathematical formulas that are used in mortgage amortization in order to be able to answer common mortgage questions.

What is important is that you have a general understanding of mortgage amortization

Ditech : Mortgage Underwriter

The mortgage underwriter understands the mortgage loan qualification, approval, and pre-approval. He makes the decision if the borrower qualifies for the mortgage. If the mortgage application fails to meet the qualification level, he determines the best mortgage loan options for the borrower.

To qualify for the mortgage, the mortgage underwriter basically looks at the credit history, credit score, down payment, equity, income, and outstanding loan. So, he also understands how to repair bad credit rating, and increase the credit score.

The credit history tells how the borrower pays off loan obligation. As you pay off the mortgage, the Credit Score increases. A high score is a positive indicator. The borrower will possibly be approved for the mortgage.

The income and debt ratio helps the mortgage underwriter prove that the income is enough to cover the mortgage, and outstanding loan. To prove, the mortgage underwriter verifies all the different source of income.

First, the loan officer prepares the necessary documents for the mortgage application. Then, the loan officer enters the personal and credit information into the underwriting system. The system checks the qualification of the information. Eventually, the loan officer gets the qualified application. Then, the loan officer sends the qualified application to the mortgage underwriter. The mortgage underwriter verifies the documents including pay stubs, and bank statements. If there are missing documents and unsatisfactory documents, the mortgage underwriter asks the borrower to provide the documents. This makes sure that the borrower has enough income to pay off the mortgage. Finally, the mortgage underwriter gives the final approval.

All these steps ensure that there is absence of fraud, and meets the standards in which the mortgage are insurable, and serviceable. So, the mortgage underwriter knows the good and bad practice on mortgage application. The standards are set by the company and government.