There are many types of mortgage insurances, but the one that most borrowers worry about the most is private mortgage insurance (PMI). This insurance is basically to protect lenders in case borrowers fail to pay them back. The reason you need to pay private mortgage insurance (PMI) If you as a borrower pay less than 20% of the cost of your house as down payment, it poses a higher risk to your lender.

A subprime mortgage is a loan given to individuals who have a credit score below 640 or do not have a credit score at all. Federal Deposit Insurance Corporation defines these individuals as ‘borrowers who have been delinquent, bankrupt, have a low credit score or have a low income’. The people who have defaulted on two or more payments in last one year are also included into this category.

Many home buyers are tempted to get the 30-year fixed rate mortgage. However, you can get a lower interest rate with an adjustable rate mortgage. The fixed rate mortgage loan provides security but is more expensive while the interest rate on the adjustable mortgage may fluctuate. Let us try to lay it all out on the table and see what is a good fit for you.

A mortgage is a formal agreement between an issuer and a borrower, wherein the issuer agrees to pay a certain amount of money to the borrower for buying a property. A wraparound mortgage is a smaller mortgage that is granted to a borrower. It is a secondary mortgage accompanied by the primary one, which helps the borrower to make the full payment of the property.

If your application for a mortgage has been denied, the first thing you need to do is find out the reason why it was denied, the period you need to wait before applying again, and the things you need to make sure of to prevent the decline from happening again.

Most mortgages taken out on real estate are used for very specific purposes. The world has entered a phase where saving energy has become very important. It is only logical to make a mortgage available so that people can afford to have energy-saving appliances and fixtures more easily. An ’energy efficient mortgage’ makes this happen when it comes to home improvement.

When you apply for a mortgage, you are handed over certain rules and regulation to follow during the procedure. You are also given a document containing all the information about fees and other payments that you are required to make before your application is processed and you move ahead. All mortgages have a certain fee attached to them.

Most home buyers grapple with the decision of taking a 15-year mortgage vs. a 30-year mortgage. They often choose the latter as the increased monthly payments on the 15-year mortgage are substantially higher. While monthly payments may be higher, the savings are enormous with tens of thousands being potentially saved.