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A mortgage loan that allows a new home purchaser to undertake the obligation of the existing loan with no change in loan terms. Loans without Due-On-Sale Clauses, including most FHA and VA mortgages, are generally assumable. |
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Mortgage brokers may represent several lending sources as opposed to direct lenders who are a single lending source. Brokers act as intermediaries between you and several lenders. While this may be helpful if you would rather shop around for different lenders through a "liaison," there may be some downsides to using a broker. Dealing with an intermediary can increase the time it takes to close your loan as well as have other drawbacks, which you'll understand as you read further.
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FHA stands for the Federal Housing Authority. Franklin First Financial is an authorized FHA Lender. The FHA promises to pay lenders if a borrower defaults on an FHA loan. To fund this obligation, the FHA charges borrowers a fee. Home buyers who use FHA loans pay an upfront mortgage insurance premium (MIP) of 1.5%. They also pay a small ongoing fee with each monthly payment. |
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Fixed rate loans have a stated interest rate that does not change over the life of the loan, whereas the rates on adjustable rate loans are linked to an index and change as the index rate changes. Many mortgages, such as a 5-Year Fixed (30 Year), start as a fixed rate loan and then convert to an adjustable rate. Adjustable rate loans have more risk due to the possibility that the interest rate could increase. However, because you are assuming some of the risk the lender will generally reward you with a lower interest rate. These loans are best for borrowers who do not plan on keeping the loan for the full term. |
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You can use a home-equity loan by Franklin First to finance improvements to your home. In this way, you can actually increase the value, and thus the equity, in your home. Remember that the best outcome of a home-equity home improvement loan is that you boost the fair market value of your residence. In this way, you actually add to your equity at the same time you are borrowing against it. Not all expenditures on your home will have this result. While extra rooms will almost always add value to your home, many interior changes or luxury additions will not. Keep in mind that increasing personal comfort is not necessarily the same thing as making true improvements. |
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