Can My Bank Wait to Give Me Access to the Money I Deposit?
The bank is allowed to place a "hold" on checks you deposit.
A fixed-rate mortgage has the advantage of being predictable. Principal and interest payment stay the same for the duration of the loan.
An ARM usually begins with a lower payment than the fixed-rate loan. However, the interest rate and payment often rise rapidly over time. The rate adjusts based on an index but lenders use a variety of indexes. A borrower should ensure that he could afford the maximum payment before accepting the loan.
To learn more about an Adjustable-Rate Mortgage click here.
An adjustable-rate mortgage that gives the borrower the option to convert to a fixed-rate mortgage. A fee is often charged for the conversion.
This loan offers monthly payments that start lower and gradually increase at predetermined times.
A loan made by a FHA-approved lender and insured, or guaranteed, by the Federal Housing Authority. This reduces the risk to the lender, and offers increased borrowing power to qualified applicants.
These loans are guaranteed by the United States Department of Veterans Affairs. These loans allow veterans and those serving in the military to obtain affordable home loans.
A Balloon Mortgage has low payments for a fixed period. After that period, the entire balance of the loan is due. In some situations, a balloon mortgage can be refinanced before the final payment is due.
The borrower will pay only the interest on the loan for a fixed period. After that period, the payments will include a principle payment or require the principal to be paid as a lump sum.
A specific amount of credit based on the appraised value of the home minus the outstanding balance of the mortgage. The lender and the borrower agree to a “draw period” where the line of credit is open. The full principal amount of the loan is due at the end of the draw period.
Learn more about a HELOC here.
A product that allows conversion of part of the equity in your home into cash without having to sell the home or pay additional bills.
Learn more about reverse mortgages here
For Tools and Resources to help with the home buying process click here.