Cal Tech Mortgage

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A mortgage loan is no small thing. It is a long period commitment that usually stays with you 15 to 30 years of your life. Because of this, so many important things have to be thought and planned about and so many factors will be decided whether you will get a mortgage loan or not.
These factors can be divided into two. The first one would be those that you need to think about before taking in a mortgage loan and the second would be the factors about you that lenders have to consider before approving your mortgage loan.
Let us first consider you.
Before you can choose the mortgage plan for you, you have to review your financial situation at present and project if your housing needs might change in the future wile you are still tied with your mortgage loan. You can ask yourself these questions to help you with this:
- How long do you think do you plan to stay in your house?
- Are there expectations for you financial income to increase over time which could allow you to pay more for your mortgage loan?
- What do you think are the significant expenses you might make in the future that could affect your capability of paying your monthly interest? College tuition fees, investing in small business plans, etc are examples of these.
The next step is to assess the level of risk you are ready and comfortable in taking. Remember that a mortgage loan takes a long time to close and you have obligations to pay for it seriously and constantly for that length of time. Decide on what mortgage rate you think you can work with. Adjustable rate is risky since interest rates change increasingly which is why it is best to project your income if it can increase over time should you take this. Fixed rate will always be safer because it is stable.
The third step is to determine the length of period you want to have the loan. Most terms are 15, 20 and 30 years. Usually, a shorter term means higher monthly payments. This is good for people whose incomes are higher than average and are stable. But, most average income people go for long term periods because aside from a smaller monthly bill that can fit their budgets, mortgage plans like this bring forth assurance to loaners.
The last step is to assess the closing costs of a mortgage loan and the lowest interest rate that you can get.
Now, let us consider the factors that might affect the approval of your mortgage loan from lenders. There are ten of these which are the following:
1. Credit report. The three major credit bureaus: Equifax, TransUnion and Experian provide your credit report. It is important to review these for errors because according to statistics, errors are present in 40 percent of credit reports. These errors can figure in your mortgage loan which would lead you to get higher interest rates or not get the mortgage loan at all.
2. Credit Cards. Lenders become suspicious when you apply for new credit cards or close current accounts when you are applying for loan mortgage.
3. Outstanding Credit. This figures much in the approval of your mortgage loan. Pay off all credits before applying for the loan.
4. Income. A steady income will give you plus points in securing a mortgage loan so it is recommended that you should avoid changing jobs or quitting your job before applying for a mortgage loan.
5. Available funds. Make sure that you do not make purchases that could consume your available funds before buying a home. Aside from a down payment, you have to consider other expenses such as closing costs.
6. Down payment A bigger down payment assures you of lower interest rates on the mortgage loan.
7. Interest rate. This determines how much you will have to pay each month. It is best to consider “lock-in” fees to guarantee yourself that you still get the advantage should interests rise in the market. Remember that interest rates continuously change.
8. Price Range. From your current financial assessment of your situation and by figuring out your debt-to-income ratio, determine the price of your home. A lender will not approve of a mortgage loan whose price you cannot meet.
9. Lender. Know your lender and inquire about the statistics concerning those mortgage loan applications they turned down and approved. According to financial experts, it is not a good sign if the lender denies 20 percent of those who applied for a mortgage loan.
10. Your honesty. Be honest when filling out all the information the lender requires from you to increase your loan approval. Beware that providing inaccurate information may backfire on you and no lender will be willing to work with you.

It used to be the first choice of most borrowers, because since the total payments are spread over a longer period of time with the intetrest rate set for the entire time of the mortgage. Thirty year home loan rates are a business regular but is it the right choice for you personally?
The thirty year home loan is an industry standard, but is it the right choice for you personally? Because the total payments are spread over a longer time period and the interest rate set for the entire time of the mortgage. This was the very first option of most home owners.
As we mentioned, the plus side for a thirty year home loan is lower month-to-month payments. This attraction is somewhat dimmed by the fact that you spend thousands additional in interest. But, your interest is 100% tax deductible which does lower your after tax price. It offers you some flexibility so that if your financial situation changes and you have a lot more cash you are able to pay it off in less than 30 years, this while keeping the low month-to-month obligations. Your obligations are smaller so in reality you are able to buy a larger roomier home.
To show an example from the interest difference between 30 year home loan rates and one of the other rates. On a thirty year, 100,000 dollar loan utilizing 7% interest rate your monthly payment of interest and principle would be $665.30. Over the next thirty years you’ll have paid $139,511.04 in interest alone. Now with a 15 year home loan rate on the same amount you’ll spend $871.11 per month and over the next 15 years, you’d spend $56,799 in interest. This would save you $82,712 dollars.
If you have the will power to invest the savings from the month-to-month payments, it still might be a good choice to go with the 30 year mortgage. Particularly if you are able to find an investment that the long term payoff matches or exceeds what you would save in a 15 year mortgage. An additional factor to consider is how quick you want to accrue equity in your home or to own it out right. 30 year home loans take much longer to build equity.
30 year home loan rates are definitely attractive and the vast majority of home buyers get 30-year loans because that’s the longest home loan available today. Experts agree if they could get a 35- or 40-year loan, they probably would. There are many other options to consider. Probably the biggest question you have to ask yourself when considering a loan is what are your monetary objectives? What loan plan will help you the most to reach that goal? It is clearly to your advantage to look into other loan options for the greatest loan available for you and your financial objectives. It may surprise you that because of your personal situation there might be other plans a lot more suitable for you.

Let’s face it, not everybody has enough cash in his bank account to purchase a home. If you’re an average American, chances are you need a mortgage loan.
There are many kinds of mortgages and these can be classified into 2 categories. They are conventional and governmental financial loans. Mortgages from both categories could be further categorized as fixed price financial loans, adjustable price loans and various hybrids or combinations from these mortgage loans.
The US government provides mortgages which could be found from three government departments. They are the US Department of Veterans Affairs (VA), US Department of Housing and Urban Development (HUD) and also the Rural Housing Service (RHS) of the U.S. Dept. of Agriculture. Aside from these, other mortgage strategies for low price to moderate housing plans are also obtainable in various cities, states and counties. Most of those provide fixed rate mortgages and low interest prices.
Mortgage plans that are not included among these are below conventional mortgages. There are 2 types of mortgage under this category. They are conforming mortgage loans and non-conforming mortgage loans. Conforming mortgage loans follow the guidelines and conditions that were set up by 2 stock-holder owned corporations: Fannie Mae and Freddie Mac. These two businesses buy mortgage financial loans from lending institutions and package these into securities which are then sold to investors.
Both organizations set guidelines on down obligations, suitable properties, loan amounts, borrower credit and earnings requirements on mortgages. And each year, loan limits for persons applying for their very first mortgage are made recognized. To see their tables for loan limits, interest prices, and other info, visit the Fannie Mae (www.fanniemae.com) and Freddie Mac(www.freddiemac.com) websites.
You will find also other mortgage financial loans obtainable within the market. These non-conforming loans include: Jumbo loans and B/C financial loans. Jumbo mortgage financial loans are individuals which are above the maximum loan established by Freddie Mac and Fannie Mae. It is a kind of mortgage that has a higher interest than conforming loans because financial loans are acquired and bought in lower degree.
B/C mortgage financial loans, on the other hand, refer to plans that are offered to persons who have borrowed mortgage financial loans earlier but have filed for foreclosure and bankruptcy. This can also be for borrowers who have had a record of late obligations.
As mentioned earlier, traditional and governmental mortgages could be classified into fixed rate mortgage and adjustable mortgage. From the term “fixed rate”, fixed price mortgage financial loans are those whose monthly payments remain fixed over the period from the loan. You will find so many kinds of those ranging from 10 – 30 years but the a lot more well-liked terms for mortgage are 15 and 30. You should note that a shorter mortgage period assures you a smaller interest to spend.
Should you wish to avail of mortgage financial loans where monthly obligations can change periodically, then you could select a plan under adjustable rate mortgages. The interest in this type of mortgage loan changes depending about the type of index made to the interest price. Some of those indexes include Constant Maturity Treasury (CMT), Prime Rate, Certificate of Deposit Index (CODI) , 12-Month Treasury Average (MTA), Cost of Savings Index (COSI), Certificates of Deposit (CD) Indexes, Treasury Bill (T-Bill), 11th District Cost of Funds Index (COFI), London Inter Bank Offering Prices (LIBOR) and Fannie Mae’s Required Net Yield (RNY)
The Internet is really a rich source for information on mortgage and so many companies provide online resources and services for individuals who want to avail of those loans. But before choosing the right type of mortgage there are some considerations you have to think about such that your mortgage plans will work out with your financial objectives. These are:
-The amount you are able to pay monthly for the mortgage

-Consider should you plan to make extra principal obligations
-And since mortgages take more than long periods of time to cover, it is also important that you consider the stability of your earnings.