BRezai

#Jumbo #Loans: Exceeding a Conforming Loan If you borrow at or below the conventional loan limit for non-government mortgages, you have what is known as a conforming loan. If the amount surpasses the loan limit that is set by both Fannie Mae and Freddie Mac, $417,000 in 2008, for a single-family home, you would then have a jumbo loan and pay a somewhat higher rate because lenders believe these larger loans carry more risk. There are also loan limits on FHA and VA loans. Chec...k with the Department of Veterans Affairs or the US Department of Housing and Urban Development for more information. www.homeloans.va.gov/ www.hud.gov/ #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity See more

#Growing #Equity #Mortgages Also called GEMs, growing equity mortgages are fixed-rate mortgages that have monthly payments that increase in increments of 3 percent or more to reduce the principal loan amount. They are often written by the lender at a below market interest rate and have shorter terms. A GEM enables you to pay off the mortgage earlier, save tens of thousands of dollars in interest payments, and build equity quickly. A 30-year GEM, depending on the interest rate..., can normally be paid off in 15 to 20 years. #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity See more

#Shared #Equity and #Shared #Appreciation Shared equity and shared appreciation mortgages are not the same. With a shared appreciation mortgage, or SAM, a borrower receives a below-market interest rate in return for the lender receiving a share, usually 30 to 50 percent, in the future appreciation of the property upon its sale. Introduced in the early 1980s, when interest rates were high enough to make qualifying for a mortgage a real challenge, shared appreciation mortgages... have never really caught on. Adjustable rate mortgages (ARMs) proved more attractive. #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity See more

#Understanding #the #Benefits #of #Equity #Sharing A shared equity mortgage, or partnership mortgage, can be a good way to purchase a home with little or no money down. In such an arrangement, the borrower/homebuyer has an absentee partner who, as the investor, provides all or some of the down payment. Equity sharing is not as popular in a slowly appreciating real estate market as in a rapidly appreciating one when equity investors are easy to find. A type of equity sharing c...alled tenants-in-common (TIC) partnerships is becoming increasingly popular, especially in high-priced markets. First-time buyers are usually most interested in a TIC arrangement because it gives them a way to buy property collectively with an unrelated partner. Loan underwriting standards are more complicated with this type of deal because lenders have more than one party's financial situation to assess. It is a good idea to hire an attorney to help draft a shared equity agreement. #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity

The Hybrid Loan Also called a fixed-period ARM, a hybrid loan is a crossbreed loan that combines features of fixed-rate and adjustable-rate mortgages. Hybrid loans start out with a fixed interest rate for a number of years, usually 3, 5, 7 or 10 years, and then convert to an ARM. Initially, the interest rate for the fixed period of the loan is much lower than the rate on a fixed-rate, 30-year mortgage by about 1.5 percentage points. As a result, the hybrid loan allows borrowe...rs to buy a lot more home than they can afford-but at greater risk. The terms and fees for these loans vary widely and when the fixed-rate period expires, homeowners could end up paying considerably more than the current rate of interest. Before considering a hybrid loan, pay close attention to the terms, fees, and prepayment penalties. #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity See more

#The #Two #Step #Mortgage A two step mortgage, not to be confused with a biweekly mortgage, is a type of home loan that is also known as 5/25s and 7/23s. It has one interest rate for part of the life of the mortgage and a different rate for the remainder of the loan. Two steps are 30-year mortgages and can either be convertible or nonconvertible. The 5/25s have a fixed interest rate for the first five years and either convert to a one-year adjustable rate or a 25-year fixed l...oan. The 7/23 has a fixed interest rate for the first seven years and then converts to a one-year adjustable rate or a 23-year fixed loan. The initial rate on the two step is lower than on a 30-year fixed mortgage, but higher than a one-year adjustable. Also, because the adjustment interval is longer, there is less risk initially than with an adjustable rate mortgage, or ARM. #1realtor #LosAngeles #California #ColdwellBanker #RealEstate #Passion #Design #Opportunity