Financing Questions and Answers
Do I have to disclose a parent’s gift to the lender?
A gift may be more acceptable than an actual parental loan, particularly if the loan must be paid back immediately, which could contribute to an increase in your monthly debt - something a lender may frown on.
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Seller Financing May Be Worth Exploring
In today’s stymied real estate market, lenders are more cautious about making loans and sellers are more inclined to agree to carry financing to sell their properties more quickly.
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Bridge Loans
It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan basically enables you to have a place to live after the closing on the old home.
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Reverse Mortgages
A reverse mortgage is an increasingly popular option for older Americans to convert home equity into cash. Money can then be used to cover home repairs, everyday living expenses, and medical bills.
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Private Mortgage Insurance
What is private mortgage insurance?
Is private mortgage insurance always required on low-down payment loans?
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What is Amortization and Negative Amortization?
When you amortize a loan you basically pay off the principal by making regular installment payments. This typically takes place gradually over several years.
Negative amortization is when the mortgage payment is smaller than the interest that is due, which causes the loan balance to increase rather than decrease.
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Avoiding Bankruptcy: What Every Consumer Should Know
“While bankruptcy may be the only choice for many consumers, there are viable alternatives for some people,” said Erickson. “The decision to file for bankruptcy is definitely an opportunity to get a new start, but it also has long-term implications and consumers need to clearly understand them.”
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