A sum of money that a lender gives to a borrower that must be repaid along with interest
There are many types of loans to choose from when you are looking to buy a home. Each loan will have a different interest rate and term, which will affect how much you have to pay each month. How much you put towards a down payment will also affect your monthly payment. The three most common types of loans are fixed rate, adjustable rate, and balloons. A home loan is also called a mortgage.
See: Fixed rate mortgage, Adjustable rate mortgage, Balloon mortgage
Mortgage definitions and Real Estate Terms, Consolidating loans, refinancing mortgages and reverse mortgage process available to anyone. This consumer information site contains several tools and guides to aid in purchasing or refinancing a home or commercial property.
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Showing posts with label borrower. Show all posts
Showing posts with label borrower. Show all posts
Friday, April 14, 2006
Acceptable debt
How much debt a lender thinks borrower can handle before agreeing to give them a loan
Mortgage lenders prefer when less than 5% of your salary goes to paying off debt, such as credit cards, car or student loans. They need to know that you will be able to comfortably pay your monthly mortgage payments without other overwhelming bills.
Mortgage lenders prefer when less than 5% of your salary goes to paying off debt, such as credit cards, car or student loans. They need to know that you will be able to comfortably pay your monthly mortgage payments without other overwhelming bills.
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