Digital Successes

(Image: http://i46.photobucket.com/albums/f147/sachinbeedigital/Indiabulls20Finance20Housing20Ltd/LAP-IBHFL_zps95f18548.jpg)You do not save any money on your principal when choosing this type of loan. It only delays you paying your principal for a preset length of time. Your P & I payments will actually be higher after your interest only period, because your payments will be amortized according to the remaining time left on the loan. Example- A 5 year interest only option on a 15 year mortgage for $100,000. If you beloved this report and you would like to receive much more info with regards to kennesaw mortgage kindly check out our site. 00. You will pay only the interest for the first five years, then you will pay P & I for only 10 years. Therefore, you will be paying off the $100,000.00 over 10 years instead of 15 years, making your payments higher.

The economy is going to have a big part in you being able to get this size of a loan as well. Lenders already feel as though this is a risk but when the economy is at a low, they are even harder to convince for the loan. Before you even start the process you should make sure that you have a sizable down payment on your jumbo mortgages to help with the jumbo loan rate. This can also make it easier with the lenders when you are applying for the loan.

external frameThe interest rate you pay will be calculated over a base rate and a certain percentage will be added to it according to the risk. Other than the prime rate, the other base rates are the LIBOR (London Interbank Offered Rate) and the specific Treasury bill rate, which is issued by the U.S. government on bonds for a number of years. Prime rate controls the credit cards and car loans whereas; the jumbo mortgage rates are dictated by the other rates.

One of the best strategic selling tools I have come across recently are finding home owners that own property.They have the ability to finance their own home to the buyer! This method reduces the lost if you were to have to sell in the current market conditions. I have found in some cases, that they are willing to reduce the purchase price of up to 50% , offsetting some of the losses incurred by the sale, but they recoup most of the losses buy charging higher interest rates than the bank would charge on jumbo home loan.

Conventional loan limit for most of Washington is $417,000. Exceptions to this limit are Snohomish, San Juan, King, and Pierce Counties where the limit is slightly higher.

Speculators (Foreign and Domestic) with excellent credit scores, who got involved in the house flipping game are paying the price now with bad million dollar investments draining cash month after month, in some cases I have found deals of up to 50% off actual retail prices they paid! Some are taking huge losses to maintain their “A” credit rating!