Ever heard of sticker shock? It’s when you’re shocked or surprised by an increase in an item’s price. It happens with cars, it happens with houses, and it happens with mortgages. What causes sticker shock with a mortgage? Sticker shock with a mortgage happens when you apply for a loan, don’t lock in the rate,…
A “float down” is an option a lender might offer you, and it works like this: you apply, lock in your rate, but you still want to be able to get a lower rate if rates go down. There are a variety of float downs available. Some say that if you lock in your rate…
Sounds too good to be true, doesn’t it? But at Amerifund, it’s real. A no closing cost loan. No closing costs – zero – zip – nada. How do you get one? Just ask any Amerifund loan officer. First, let’s be very clear – these loans are usually (not always) at a higher…
LTV stands for loan-to-value. It is simply your loan amount divided by the lower of the purchase price or appraised value. How to Calculate LTV on a Purchase Let’s say you are buying a house. You negotiated a sales price of $500,000. You are putting down 10%, so you will be borrowing 90% of the…
Mortgage Bankers Association of America Consumer Information The Mortgage Bankers Association of America is the preeminent association representing the real estate finance industry. Their consumer information site contains several tools and guides to aid in purchasing or refinancing a home. Federal Reserve Board Consumer Information The Federal Reserve Board maintains a web page with consumer…