Mortgage Loan Options Going Exotic

Mortgage Loan Options – Going Exotic
In the​ past,​ a​ person had limited options when borrowing money for a​ home purchase .​
These days,​ there are exotic mortgage loan options that satisfy just about every borrowing need .​
Creative Mortgages
Getting a​ loan for a​ home purchase can be very stressful .​
What if​ you​ don’t qualify? How humiliated will you​ be? These days,​ there’s no reason to​ worry .​
The mortgage lending market has a​ solution for just about everyone .​
1 .​
Do the​ Two Step .​
the​ Two-Step Mortgage is​ a​ mixed interest rate loan .​
Essentially,​ the​ loan provides a​ lower fixed interest rate for a​ period of​ 5 years or​ so and then adjusts to​ a​ new rate at​ the​ end of​ the​ period .​
The new rate is​ dependent upon the​ interest rates being charged at​ the​ time of​ the​ change .​
This loan can be helpful for borrowers who are squeezing into a​ loan since the​ initial period tends to​ have a​ lower interest rate than a​ straight fixed interest loan .​
2 .​
Graduated Payments – Graduated Payment Mortgages are loans that,​ well,​ have a​ graduated payment schedule .​
Depending on​ the​ specific lender,​ the​ first five to​ seven years of​ mortgage payments will be 10 to​ 20 percent lower than a​ fixed rate mortgage .​
After the​ prescribed time,​ the​ payments will actually be higher than a​ fixed rate loan .​
The advantage of​ this loan is​ two fold .​
First,​ it​ lets you​ borrow more money than a​ fixed loan because you​ can qualify for the​ lower initial payments .​
Second,​ the​ loan is​ optimal if​ you​ are expecting to​ sell the​ house within the​ initial five-year period after significant appreciation .​
3 .​
Sharing Appreciation – Shared Appreciation Mortgages are typically provided by private investors and even family members .​
In essence,​ you​ borrow money to​ purchase a​ home by agreeing to​ share a​ percentage of​ future appreciation in​ the​ home with the​ lender .​
Private lenders can want as​ much as​ fifty percent of​ the​ appreciation,​ but they will significantly lower the​ interest rate on​ the​ loans .​
SAMs should really only be used if​ you​ have horrible credit and no other options .​

There three loan options are only the​ tip of​ the​ iceberg when it​ comes to​ mortgages .​
If you​ need to​ get creative,​ find a​ reputable mortgage broker in​ your area and see what they can come up with for you.
Mortgage Loan Options Going Exotic Mortgage Loan Options Going Exotic Reviewed by Henda Yesti on June 23, 2018 Rating: 5

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