For a long time the real estate market was saturated with foreclosures. In fact, according to one expert, 60% of real estate sales in recent years have been through foreclosures and short sales. Over time, most of them have cleared out and the ones that still remain are in conditions that most buyers think they don’t have the money to fix.
This is probably the biggest misconception. While it used to be true that you needed a large down payment, this is no longer the case. In the mortgage industry, there’s always a great new product just around the corner that benefits the consumer. The latest of these to surface is the “zero down” mortgage. This mortgage seems to suit two decidedly different types of borrowers:
Let’s take a look at them individually:
Oftentimes it may seem like a good idea to refinance to combine a first and second mortgages. If you have enough equity to keep your combined loans under 80% of the appraised value of your home this may work. There are some considerations however.
If you’re existing 2nd mortgage was not used to originally to purchase the home, it will be considered a “cash out” refinance and the lenders will charge a .50 discount point one time fee. Just multiply .0050 ...Continue Reading → Share