Can i make my Living in Second Life?
You see another advertisement offering a 30-year fixed-rate mortgage at 7 percent with no points. With either lender, that means that your monthly payment is $665.30. Say you need to borrow $100,000. Easy choice, right? Actually, it isn’t. Fortunately, the APR considers all of the fine print. 97,975). This means that $97,975 is the new loan amount used to figure the true cost of the loan. To find the APR, you determine the interest rate that would equate to a monthly payment of $665.30 for a loan of $97,975.
For decades, the only type of mortgage available was a fixed-interest loan repaid over 30 years. It offers the stability of regular — and relatively low — monthly payments. In the 1980s came adjustable rate mortgages (ARMs), loans with an even lower initial interest rate that adjusts or “resets” every year for the life of the mortgage. At the peak of the recent housing boom, when lenders were trying to squeeze even unqualified borrowers into a mortgage, they began offering “creative” ARMs with shorter reset periods, tantalizingly low “teaser” rates and no limits on rate increases.
Also, it takes you longer to build up equity in the home, since you pay back so little principal for so long. Not only does your interest rate never change, but your monthly mortgage payment remains the same for 15, 20 or 30 years, Lumpini Park Bangkok depending on the length of your mortgage. Not that long ago, there was only one type of mortgage offered by lenders: the 30-year, fixed-rate mortgage. But that doesn’t mean that fixed-rate, 30-year mortgages are a bad thing. A fixed-rate mortgage offers an interest rate that will never change over the entire life of the loan. Equity is the value of your home minus your remaining principal balance. Far from it. We’ll look closer at fixed-rate mortgages on the next page.
This protects the lender in case you fail to make your mortgage payments. Premiums will usually be a part of your monthly mortgage payment and will be transferred into the same escrow account your taxes and homeowner’s insurance fees are paid into. You have to pay these PMI premiums until you reach the 20 or 25 percent requirement — or, they can go on for the life of the loan. This is just to ensure that there haven’t been any changes, like new structures or encroachments on the property, since the last survey. Surveys — Many lenders will require that the land be independently surveyed.
Typically, you will pay anywhere from 3 to 6 percent of your total loan amount in closing costs — that means $3,000 to $6,000 if you get a $100,000 loan. You may also be able to negotiate for the seller to pay some of the closing costs. The Real Estate Settlement Procedures Act requires lenders to provide you with a good faith estimate of closing costs within three days of receiving your application. As you can see from the list covering the next few pages, there are a lot of fees that you might be able to convince the lender to lower or drop. Of course, you can and should shop around and negotiate the fees.
