Entries by Charlie Christensen

Adjustable Rate Mortgages (ARMs)

These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home. However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will […]

Fixed Rate Mortgages

The most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also “biweekly” mortgages, which […]

Subprime Loans

Subprime loans are pretty much a thing of the past. Wall Street and the major banks got greedy and kept loosening the qualifying terms of subprime loans and as a result, we all know what has happened to our economy. Following was the original logic behind subprime loans… it was only after little to no […]

Conventional and Jumbo Loans

Conventional loans are secured by government sponsored entities or GSE’s such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes. Down payments as low as 3% are now available! In general, Fannie Mae and Freddie Mac’s […]

Choosing a Loan Program

There isn’t a single or simple answer to this question. The type of mortgage for you depends on many different factors: Your current financial picture How you expect your finances to change How long you intend to keep your house How comfortable you are with your mortgage payment changing For example, a 15-year fixed rate […]

PMI Payment Options

Private mortgage insurance can be paid on either an annual, monthly or single premium plan. Premiums are based on the amount and terms of the mortgage and will vary according to loan-to-value ratio, type of loan, and amount of coverage required by the mortgage company. Under an annual plan, an initial one year premium is […]

Private Mortgage Insurance

Private mortgage insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed. Private mortgage insurance also enables mortgage companies to grant loans that would otherwise […]

Homeowners Insurance Information

When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed. If you don’t have sufficient insurance, your insurance company may only pay a portion of the cost of replacing or repairing damaged items. There are three ways to insure the […]

Refunds Ready on FHA Loans

If you have ever paid off a home loan backed by FHA, you may have money owed to you. And the government wants to pay you back. About 1 in 10 FHA borrowers leave money in their escrow accounts when they pay off their loans. The average refund for each borrower is about $700. Former […]

FHA Mortgage Insurance Costs

FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up front premium of 1.50% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition, there is a monthly MIP amount included in the PITI. Condos do not require up front MIP – only […]