Information About Bad Credit Mortgage Loans

Obviously most people can't afford to buy a house with cash, so most home buyers need to obtain a mortgage. A mortgage is a loan given to the person who wants to buy the house and the house that the individual wants to buy is then held as the collateral for this money until the debt is fully paid off. The payment for this debt is done in monthly installments that have a calculated interest rate.

Seller Financing

You may have heard of seller financing before but it did not make sense to you. This type of financing is a loan given by the seller to the buyer. You may have encountered other terms that means the same with this. Some of its other terms are owner financing or owner carry back. You may wonder why such arrangement even exists. Sellers sell their properties because they need the proceeds in the first place, right?

Different Types of Refinancing Mortgage

This is one of the key factors to be considered by a homeowner when deciding to refinance their home either by fixed rate mortgage (FIR) refinancing, by an adjustable rate mortgage (ARM) refinance or by hybrid loan. Hybrid loan is nothing but a combination of fixed and ARM option. The names of these options are self-explanatory, however fixed mortgage means that mortgage interest rate always remains constant and ARM means that mortgage interest rate is always variable.

Reverse Mortgage Defined

To understand how the reverse mortgage program works, the borrower must understand the terminology associated with the program. This program is a U.S. Department of Housing and Urban Development (HUD) initiative to ensure mature borrowers, over 62 years of age, are able to retain their independence while remaining in their current homes by using the equity. But the classic definition of the reverse program does not shed light on other terms used by lenders and counselors alike.