Steps to Getting the Home You Want

Different Types of Mortgages

Your Credit, Capacity, Collateral and Character

Florida Home Loan Providers

Understanding Your Credit Rating
Ever wonder just what lenders look for in determining whether you qualify for a mortgage? This section details the four c's of "credit-worthiness" as seen through the eyes of a mortgage broker; your credit, capacity, collateral, and character.

Reasons for a Pre-Approved Mortgage
While most home buyers use the more traditional method of obtaining a mortgage, there is a better alternative available to most people, the pre-approved mortgage. With a pre-approved mortgage you already know you've got your home loan before you've even picked a house to buy!

Different Mortgage Types
Looking for a mortgage but not sure which is right for you? Information on Fixed Rate, Adjustable Rate, and Balloon Mortgages, and how to pick which is right for you.

Florida Mortgage Lenders Directory
Click here for a comprehensive directory of different mortgage lenders in the Florida area.

Today's Featured Real Estate Article:

The Zero Down 80/20 Mortgage

 by: Matthew Allen

This is an excellent loan for those that are lacking the down payment required for other types of mortgages.

The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage.

If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil.

If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase price.

Many times you will have two choices when it comes to the second mortgage portion of the 80 20 mortgage. The second mortgage can either be a fixed second mortgage or it can be a line of credit.

If it is a fixed second mortgage. The interest rate is fixed for the entire length of the mortgage. Most fixed second mortgages are a 30 due in 15. Meaning that the second mortgage is amortized over 30 years, but is due in 15 years. Basically it is a balloon payment. Don’t let this scare you. Statistically people refinance or sell their home every 7 to 9 years any ways.

If it is a line of credit as the second mortgage. The interest rate will fluctuate as the Federal Reserve adjusts the prime interest rate up or down. The benefit of going with the line of credit as the second mortgage is that the interest rate is normally much lower than the fixed second mortgages rate. It can be 2% to 5% lower.

If you are considering doing the 80 20 loan have your loan officer compare the two different options if you have both available to you.

You may also want to consider an 80 20 interest only loan. The interest only loan could save you hundreds of dollars in mortgage payments every month. This can help you purchase a more expensive home or keep the payments down on the home you want to buy

About The Author Matthew Allen is a mortgage consutlant with Action Brokerage Services, Inc. in Medford Oregon. He is also the author of "How To Buy A Home With Zero Down, Even If You Have Damaged Or No Credit" You can visit his website at http://www.realmortgageadvice.com.

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