Seattle Mortgage and Home Loans – HARP, USDA, FHA, 203k and Jumbo – Dan Keller,

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The Biggest Mistake First Time Home Buyers Make In Seattle

Episode #46: I explain the BIGGEST mistake first time home buyers make in the Seattle market and how it cost $83,981 over 10-years

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Understanding Trump s Tax Plan and Mortgage Interest Deductions

Episode #45: It s tough to believe what the media is saying related to Trumps proposed Tax Plan and what it means to housing, so I explain exactly what it means

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Everett Mortgage Broker Explains Zero Down Home Loan Options in Washington

Episode #44 Everett Mortgage Broker explains the Top 3 Zero Down Loan Programs for 2017 and an update on the market

Recent Mortgage News Updates

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How To Pay Your Closing Cost When Buying A Home

Closing costs are a variety of fees associated with buying a home! In this article and video, you ll learn what are closings costs and how to pay your closing costs when buying a home in Seattle..

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The Top 4 Factors That Determine Your Mortgage Rate Quote

Consumers are misinformed when it comes to mortgage interest rate quotes. Today, I give you a behind the scenes look into the mortgage industry and what determines your mortgage rate

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How A Home Refinance Should Look 2 Step Process

I answer the top question I get on Yelp How do I refinance my mortgage? I share my 2-step mortgage planning process that is designed to save you and make you money over time

Real Estate Agents | Join My Next Lunch Learn

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Seattle Real Estate Radio | podcast Youtube show

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Listen Watch | This Weeks Episode

Curious about what goes into staging a home, and why it could be a life saver before you put your house on the market? David Robertson of David Robertson Design is here to shed some light on the topic.

David has been working in Seattle for 14 years in Home Staging and Interior Design. He opened his own company David Robertson Design based on the idea that if he specializes in building a company around his passion for Modern and Mid Century Modern Design/Architecture that he could create a niche in the Seattle Market that was not being meet. 10 years later, he has grown the company from of 1 Employee and 1 Sofa to 9 employees and 5000 sqft Warehouse that can stage up to 50 houses at a time. He has the most talented design team assembled in Seattle that are the magic behind his company.

Tune in to hear all your questions answered on what is important to know about design and home staging, led by our ever wonderful hosts Dan Keller and Christian Nossum.

To check out David Robertson Design, visit here

To check out Co-host Christian Nossum’s website, visit here

What Other Are Saying | About the Dan Keller Team

The Dan Keller Mortgage Team gives massive value to their clients in each transaction. They not only provide great rates and fees, but also offer unparalleled customer service! Oh, and did I mention that they can close a loan effortlessly in under 21 days?

Zach M. September 11, 2015

When it comes to buying a home, small differences between banks can amount to thousands of dollars. Dan locked us into an excellent rate and helped us secure a loan with payments well below our expectations. He secured us an amazing mortgage and made the entire process simple and effortless on our part. He and

Bert B. September 11, 2015

Dan Keller and his team are completely amazing. I have a bit of experience in mortgage lending (okay, 30 years), and would highly encourage anyone considering a real estate loan (Agents, are you listening?) to use Dan’s team for their next transaction. My daughter her family were in a short-sale escrow to purchase a

Deborah K. September 11, 2015

As a real estate attorney, I can attest to the first-class quality of Dan’s service and products. Dan has done a spectacular job for my clients, distinguishing himself by working hard, getting them in the right loans, then ensuring the transactions close smoothly. I cannot recommend Dan highly enough.

Ron M. September 11, 2015

I’m an educator and a 30+ year veteran of the mortgage lending industry. I’ve known Dan for several years now. This year, Dan was put in a position of having to make an ethical choice. He chose to be honest. His choice had an effect on me professionally, and I don’t think he realized it

Jillayne S. September 11, 2015

Can’t say enough about Dan and his team. I am a real estate broker in Northwest Washington and encourage all of the buyers we are working with to contact Dan and use him if they are financing their home. I could go on and on about how he has saved the day on different deals

Ed F. September 11, 2015

My wife and I are first time home buyers who were slightly anxious about the unknowns in the process of getting a loan. A friend referred us to Dan Keller and his group, saying they had rates comparable to big banks but were much more personable. Our first thought was that paying a bit more

Jonathan W. September 11, 2015

After an awful experience with Wells Fargo, Dan and his team swept in and saved the day. We found the perfect house and were not ready to let it go. We thought it might be a long shot to get our loan through a second process in only 3 weeks, but Dan made it happen

Alanna B. September 11, 2015

I have been recommending all of my Seattle Real Estate clients to Dan Keller for years when they need an FHA loan, conventional mortgage, or refinance. As a Seattle real estate agent myself, I am often “courted” by mortgage brokers that want me to work with them. None are as good as Dan. When he

Christian N. September 11, 2015

Dan has been an excellent business partner, I definitely recommend his mortgage services!

Bob W. September 11, 2015

Honestly after reading these reviews I was skeptical about them being fake. Possibly Dan’s friends or family trying to hype him up. People do not get this good of reviews. I was wrong; after working with Dan I can honestly say he was great. We had a near impossible situation that most advisors/brokers would have

Mortgages, Barclays best mortgage deals and rates, morgages.#Morgages


Mortgages for all kinds of adventures

Whatever adventure you’re planning, we’ll make your mortgage as simple as we can – and leave the important stuff to you.

  • Whatever your needs, we have a mortgage for you
  • Work out what you could borrow and what your payments may be
  • Find out how to manage your mortgage online, switch rates, make overpayments and borrow more

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our mortgages and services


First-time home buyer centre

Start the journey to your first home

Find out how to buy a home and take out a mortgage, get tips on what to do if you can’t save the deposit you need and work out much you could borrow.


Remortgage with us

Find the right new mortgage deal for you

If you’re thinking about remortgaging, moving home or buying a new property – we’ve got a mortgage deal for you, with experts on hand to help.


Buy-to-let centre

Get what you need for property investments

Want to start or expand your property portfolio? We’ve got tips, mortgages and insurance deals for experienced and aspiring landlords.


Existing mortgage customers

Manage your mortgage with us

Manage your mortgage, apply to borrow more, switch to a new rate or get help if you’re concerned about your ability to make payments.

Tools and calculators

Mortgage calculator

Work out your mortgage budget

See how much you could borrow and work out what your monthly payments might be with our mortgage calculators.

Agreement in Principle for a mortgage

Take the first step to your mortgage with an AiP

Start an Agreement in Principle (AiP) to find out quickly if you could borrow the amount you need – without affecting your credit score.

Need some help?

Talk to us online

Start a web chat if you’d like to ask us a question online.

Questions and answers

Read the answers to some frequently asked questions about our mortgages.

Important information

Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Barclays Bank PLC adheres to The Standards of Lending Practice which is monitored and enforced by The Lending Standards Board. Further details can be found at Barclays Insurance Services Company Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 312078).

Barclays Bank PLC. Registered in England. Registered no. 1026167. Barclays Insurance Services Company Limited. Registered in England. Registered no. 973765. Registered office for both: 1 Churchill Place, London E14 5HP. ‘The Woolwich’ and ‘Woolwich’ are trademarks and trading names of Barclays Bank PLC. Barclays Business is a trading name of Barclays Bank PLC.




Properties in Spain l Costa del Sol Property l Real Estate Agents Marbella, morgages.#Morgages








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FINANCIAL GUIDE OF BUYING A PROPERTY IN SPAIN In Estates in the Sun we will make sure we are with you in each step of the way. We have a list of fully qualified partners who will give you advise about any doubts or special requirements and will help you with morgages, insuraces, [Read More. ]



SPANISH BANK REPOSSESSIONS Spanish banks are currently the biggest owners of Spanish property with numerous repossessions on their books. This makes them Spain’s largest estate agents. But, buying from a Spanish bank is rarely straightforward and in our experience, it’s considerably [Read More. ]



FURNITURE AND AFTER SALES SERVICE With the aim of making your property in Spain as hassle free as possible, we have created our Aftersales Division that we put at the exclusive disposition of those who purchased their new home through Estates in the Sun. Whether you want to furnish your [Read More. ]

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Conveyancing: Property: Buying: Selling: Wollondilly and the NSW Conveyancing Centre, morgages.#Morgages

Conveyancing : Property : Buying : Selling : Wollondilly and the NSW Conveyancing Centre




If you are buying, selling, transferring or refinancing ANY property in New South Wales, the friendly and professional staff of the Wollondilly The NSW Conveyancing Centre are able to assist you with all your conveyancing needs. As Certified Practising Conveyancers we are fully qualified and experienced in all aspect of property law including the following:

  • Residential sale and purchases
  • Rural, commercial and industrial sale and purchases
  • Sale and purchase of business
  • Commercial and residential leases
  • Transfers
  • Refinancing
  • Morgages
  • Auction contracts
  • Off the plan purchases
  • Retirement village living

By quoting “fixed fee” conveyancing you can be assured that there will be no hidden costs. We are also able to offer you additional services such as obtaining deposit guarantee bonds at no extra cost to you.

At Wollondilly and The NSW Conveyancing Centre we pride ourselves on providing a thorough state-wide conveyancing service. Our office, located at 3/147 Remembrance Drive Tahmoor offer a professional, yet family friendly environment where you can meet with us to discuss all your conveyancing needs. As Certified Practising Conveyancers you can rest assured that we will remain up to date with all changes in legislation and procedures.

With comprehensive knowledge and extensive experience in the area of property transactions we can assure you that you will receive unsurpassed service.



This is to thank you for the excellent service provided in the recent purchase of my daughter’s new home. You were all so professional and so very approachable and friendly, nothing was too much trouble it seemed. Settlement was affected promptly and efficiently. So thank you and please be assured that I will have no hesitation in recommending your company to family and friends who require the services of an expert and thoroughly professional organisation in property matters.


With best wishes



John and I were so looking forward to moving but didn’t like all the legal side of things and were dreading it all. You made everything so easy for us and every time we rang and asked a question you took the time to explain it to us and sort out any problems. How can we thank you for being so professional and caring at the same time. We have told our friends about you. Nicole thanks so so much for all you have done.


Mary and John Swanson


I want to let you know how pleased I am with the services of your company. The conveying of my new property was handled so efficiently that i had no worries during the rather complex business of buying an investment property. More importantly, all of your staff were courteous, friendly and gave me the confidence to leave it all in their capable hands. Needless to say, I will use your services when-ever I purchase property in NSW and I will recommend your services where-ever I can.


Many, many thanks and kind regards.


ABN: 59 520 587 360 – Licensee: Nicole Garner – License No: 1102080

DISCLAIMER: The contents of this web site are for informative purposes only and should not be relied upon or construed as legal advice.

Copyright 2008, Wollondilly and the NSW Conveyancing Centre. All Rights Reserved :: Web Design by The Web Hub

Age Formula for Reverse Mortgage Rate Calculations, morgages.#Morgages

Formula for Reverse Mortgage Rate Calculations

So far the most popular reverse mortgage program you can find is the Home Equity Conversion Mortgages (HECM) program. Not all homeowners can qualify for this program, only those that are at least 62 years of age can.

Financial institutions such as banks and mortgage lenders fund HECM programs, while the federal government backs them. HECMs are popular because when you do your calculations, they have the least expensive reverse mortgage rates you can find. This calculation in itself is a formula for success.

If you are one of those seniors who are caught up in the reverse mortgage hype, there is no incentive or formula for rushing directly into it. In fact, the federal government, through the Department of Housing and Urban Development (HUD), requires that you talk to a reverse mortgage counselor before you apply for a loan. Your counselor will tell you about eligibility requirements (such as your age), make calculations on how this program could impact your finances, and inform you if the program is even the right one to use at your age.

When you meet the eligibility requirements, you can apply for a loan with a reverse mortgage lender at current rates. Reverse mortgage rate calculations are then made to determine how much money you qualify for. The formula for determining the amount of mortgage is dependent on:

  • The borrower s age,
  • The calculated market value of the home,
  • Current interest rates, and
  • The maximum loan amount in the borrower s county.

In general, the older you are, the more money you can borrow. The formula for this is as follows; if you have $250,000 in home equity and are age 62, you can get $110,000. For the same equity amount, you can qualify for $149,000 if you are age 76. Use our loan calculator to see around how much you can get.

The loan amount is derived from the mortgage limit of the Federal Housing Administration (FHA) in the area. It is for this reason that the amount given in reverse mortgage loans can sometimes be limited.

If you have paid off your home s mortgage or are in the process of completing the payment, you can qualify for a reverse mortgage. The money can be paid to you in a lump sum amount, monthly payments or as a line of credit. There are also hybrid formula payment schemes: combination line of credit with monthly payouts. Each individual must make the calculation and decide which formula will work better for him.

Using HEMC reverse mortgage loans, you are not required to pay until you are dead or have permanently moved out of the house. Reverse mortgage lenders recover the loan (principal plus interest rates) when the home is sold. The rest of the sale amount is then turned over to the principal s heirs.

If, based on certain calculations, the proceeds of the house s sale are not enough to cover the loan, HUD pays the difference. The Federal Housing Administration collects a claim on the borrower s insurance policy. The insurance premium is charged to the borrower and is equivalent to a 2% rate of the allowable loan amount. Annual premiums are then set at .5%. Stand-alone homes, condominiums and other HUD-approved dwellings are eligible under the reverse mortgage program. You do not qualify if you live in a trailer home.

Reverse mortgages are popular because senior citizens can still keep their homes although they have taken out a loan against their home s equity.


Current Mortgage Rates Today – View The Best Mortgage Rates, best home loan rates.#Best #home

Current Mortgage Rates Today

Current Mortgage Rates – Mortgage Rates Today

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Mortgage 101: A Mortgage Resource Guide

This guide will help first-time home buyers and seasoned veterans get the information they need to make the correct financial decision regarding their mortgage. Our goal is to provide information and resources for everything you need to know about the mortgage process. Whether you are shopping for your first home or you are already established in a existing home, this page can be your guide. Take the necessary steps to make purchasing your first home or maintaining your existing home a seamless [Read More. ]

Latest Mortgage Information

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Top 10 Loan Modification Lenders

Many Americans have been affected by the recent economic crisis. Millions of homes have gone into foreclosure, and millions of families have lost their homes. If you are at risk for losing your home, the good [Read More. ]

Mortgage Tips Tricks

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The Top 10 Tips to Help Homebuyers Thrive in Today s Current Home Market

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Invest Smarter by Understanding the Top 6 Most Common Mortgage Myths

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Top 5 Mortgage Scams to Watch Out For This Year

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5 Important Reasons Why You Should Pay Off Your Mortgage Sooner Than Later

Tip of the Day

The Mortgage Library

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How to Tell if Current Mortgage Interest Rates Will Continue to Rise

Up until not long ago mortgage rates used to be very low, close to the lowest they have ever been. Rates have decreased to near record lows due to the recent housing market crash, which affected both homeowners and mortgage lenders. While millions of people have lost their [Read More. ]

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Could a 10 Year Mortgage Rate Be Your Best Mortgage Option?

One of the key aspects of finding a good mortgage loan is determining what type of mortgage term works out best for you. Long-term mortgage loans seem more attractive at first glance because the monthly payment is much smaller, but if you factor in the larger interest rate, [Read More. ]

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How the Current Government Shutdown is Affecting FHA Mortgages

The housing market has been recovering steadily lately, but the current government shutdown may interfere with that progress. For the first time in 17 years, the government has partially shut down. Besides other important implications, this shutdown could affect people who [Read More. ]

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Bad Credit Home Loans Are They Possible With Today s Stiffer Regulations?

There are many reasons for having a bad credit score, and you might be wondering if you are still able to buy a home, despite your shortcomings. The truth is that there are no rules set in stone when it comes to bad credit home loans. Some lenders may be more lenient than [Read More. ]

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What is this Difference Between a Home Equity Line of Credit vs Home Equity Loan

When buying a home with a mortgage loan, both you and your lender own parts of the home. The part of the home that you own is represented by the equity which builds up each time you make a payment. Having equity in your home allows you to take out a house equity loan by [Read More. ]

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What Are the Typical Home Equity Loan Requirements

Home equity loans are designed to help homeowners gain quick access to some much needed cash by tapping into the equity in their homes. Home equity loans provide an alternative to taking out other types of loans or opening new credit card accounts. While other forms of [Read More. ]

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Pros and Cons of Home Equity Loans

Home equity loans allow homeowners to take out a loan using the equity accumulated in their home as collateral. Home equity loans give you quick access to money that can be used for a home remodeling project, medical bills or college tuition. A home equity loan can be more [Read More. ]

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Is it Possible to get a Home Equity Loan With Bad Credit?

Getting a home equity loan with poor credit is more difficult, but not impossible. Before you decide to make improvements to your home or decide that you need some quick cash, you need to find out if a lender is willing to give you a home improvement loan and how your loan [Read More. ]

Mortgage Refinancing, Home and Mortgage Center, home mortgage refinancing.#Home #mortgage #refinancing




Your rate, payment, and costs, could be higher. Get an official Loan Estimate before choosing a loan. The following rates are based on a credit score above 740. Payment examples for fixed rate loans on this page include estimated amounts for escrow items, such as property taxes and insurance. Click on the Learn More button for more details.

5/5 ARM

Adjustable Rate Mortgage

*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of , for new applications only, for a limited time, and subject to change without notice. Example based on $ loan. Other restrictions apply. Rate is variable and can increase by no more than 6 percentage points every 15 years (8.750% for this example). Since the index in the future is unknown, the First Adjustment Payments displayed are based on the current index plus margin (fully indexed rate) as of the date above.


Your rate, payment, and costs, could be higher. Get an official Loan Estimate before choosing a loan. The following rates are based on a credit score above 740. Payment examples for fixed rate loans on this page include estimated amounts for escrow items, such as property taxes and insurance. Click on the Learn More button for more details.

Estimate your costs


Once you know how much you can afford to spend on a home, you can use this tool to see how different loan types can change your monthly payment. Different loans offer different features, such as a lower monthly payment or a faster payoff time. See how a typical mortgage payment breaks down, and get the loan that fits your needs best.

The application of additional loan level pricing adjustments will be determined by various loan attributes such as Loan-To-Value (LTV) ratio, credit score, transaction type, property type, product type, occupancy, and subordinate financing.

Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, interest only mortgages.#Interest

Today’s Interest Rates and Financial Advice:

Interest only mortgages

Financial Advice

Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

November 14th 2017

The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

November 13th 2017

Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

November 13th 2017

Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

November 10th 2017

It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

November 10th 2017

You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

November 8th 2017

Interest only mortgages

Interest ing Snapshot

Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

Interest only mortgages

Interest only mortgages

Mortgage Length Comparison, mortgage comparison.#Mortgage #comparison

10 15 30 40 and 50 Year Mortgages: A Comparison

Across the United States 88% of home buyers finance their purchases with a mortgage. Of those people who finance a purchase, nearly 90% of them opt for a 30-year fixed rate loan.

Source: Freddie Mac’s 2016 home buyer statistics, published on April 17, 2017

Fixed Versus Adjustable Rate Loans

On a fixed rate mortgage, the interest rate remains the same through the entire term of the loan, rather than the interest rate doing what is called “float” or adjust. What characterizes a fixed rate mortgage is the term of the loan and its interest rate. There are a number of popular fixed-rate mortgage loan terms: the 30-year fixed rate mortgage is the most popular, while the 15-year is next. Other loan terms tend to be quite rare in comparison. People paying off smaller loans may want to try to pay them in 10 years, while people with pristine credit who are afforded credit cheaply could choose to extend their credit out to a 40-year or 50-year term. Those who want to remain highly levered have other financial assets to back their position may opt for interest-only or balloon mortgages.

In the United States fixed-rate mortgages are the most popular option. In many other countries like Canada, the United Kingdom Australia adjustable (or variable) rate loans are the standard. If a large portion of the economy is structured into variable rate loans or interest-only payments, then if the housing market gets soft it can create a self-reinforcing vicious cycle where rising interest rates spark further defaults, which then reduces home prices home equity, driving further credit tightening defaults..

Mortgage comparisonCompare fixed, adjustable interest-only mortgages side by side. Mortgage comparison

The above referenced calulator uses rough ranges for interest rates. The following table provides current market information from local lenders.

30 Year Fixed Rate Mortgage

In the United States the traditional home loan is the 30-year fixed rate mortgage. This is the most popular loan for those buying homes for the first time and even those who own more than one home. The 30-year fixed home loan fits more financial situations than any other home loan. This loan program also allows the homebuyer to have low monthly payments while having payment certainty throught the duration of the loan.

Highlights of the 30 year fixed rate mortgage are:

  • If the homebuyer chooses to increase their monthly payments, they can build equity in their home faster.
  • There are usually no pre-payment penalties with a 30-year fixed rate mortgage.
  • The low payments allow the homebuyer to use their extra money for investing and on other expenses.
  • If rates rise the homeowner is protected, but if rates fall the homeowner can refinance into a lower rate loan.

15 Year Fixed Rate Mortgage

A 15-year fixed rate mortgage allows the homebuyer to own their home free and clear in a 15 year period. While the monthly payments are a little higher than a 30-year mortgage, the interest rate on the 15-year mortgage is a little lower. The homebuyer also pays less than half of the total interest of the traditional 30-year mortgage. A 15 year fixed rate mortgage allows younger homebuyers with the income to meet the higher monthly payments to pay off the house before their children enter college. This kind of mortgage allows them to own more of their home faster with this mortgage. Homebuyers who are established in their careers tend to have higher incomes and they desire to own their homes before they retire. These are the types of people who may prefer this kind of mortgage.

Some advantages of the 15-year fixed rate mortgage are:

  • The homebuyer owns their home in half the time it would take them to own it through a traditional mortgage.
  • The homebuyer saves more than half of the amount of interest paid in a 30-year mortgage.
  • Lenders usually offer this type of mortgage at a lower interest rate than the interest rate of a 30-year loan.

Mortgage comparisonEstimate your payments with this free calculator, or compare terms side by side. Mortgage comparison

Other, Less Common Loan Terms

Mortgage comparison

10-Year Fixed Rate Mortgage

A 10-year fixed mortgage has an interest rate that never changes throughout the 10 year loan period. Initially, the principal amount is reduced and then it moves at an accelerated pace throughout the loan period. The 10 year fixed rate mortgage is essential for those individuals with high income who want to pay the least amount of interest for their home as possible, while remaining protected from the risk of rising interest rates. This allows for quick payoff of the mortgage, but as a result they have higher monthly payments. For those who can afford these types of payments, it can be a very smart move since hundreds of thousands of dollars can be saved in interest.

Highlights of a 10 year fixed rate mortgage are:

  • High monthly payments can save the most money in the long-run.
  • Regardless of changes in the market, the rate is fixed for 10 years.
  • For those who have a high enough income, a 10-year fixed rate mortgage can pay off the home in 10 years or less.

25-Year Mortgage

The most common loan term in the United Kingdom is a 25-year loan. Typically their loans are structured as tracker, discount variable or standard variable rate loans which have a 2 to 5 year introductory period where the rate is fixed then the loan shifts to a floating rate after the initial period.

40-Year Fixed Rate Mortgage

40-year mortgage rates are usually slightly higher than the traditional 30-year fixed mortgage, but the monthly payment tends to be lower due to the extended term. This loan is a good alternative for borrowers who do not desire to have an adjustable rate mortgage but still wants or needs the low monthly payment that only comes with this extended term loan program. Customers pursuing the 40-year home loan are the ones who are looking for one of two things. They are either searching for a lower payment that allows them to afford a more expensive house, or they simply want a lower payment without having to sign up for an adjustable rate mortgage.

Highlights of the 40 year fixed rate mortgage are:

  • The term is fixed for a period of forty years no matter the changes in the market.
  • The potential for a lower monthly payments than with a 30-year fixed home loan.
  • Purchase a larger home than what can be afforded with a traditional 30 year loan.
  • Low payments leave extra money for other expenses, or perhaps to be invested in other markets.

50-Year Fixed Rate Mortgage

The 50-year fixed mortgage loan is quite different in that it is like a 30-yar fixed mortgage with what is called a 50 year amortization period. A 50-year fixed rate mortgage allows the homebuyer to pay a small amount toward the principal in the beginning, which can allow them to stay aggressively invested in other markets.

Highlights of the 50 year fixed rate mortgage are:

  • Payments are based upon a 50 year amortization schedule
  • These loans are good for those with strong credit who have a history of achieving outsized returns investing in their business or speculating in the broader market.
  • The low payments allow the homebuyer to use the extra money for other investments or other important expenses.

The one and very obvious disadvantage that accompanies this loan is that the term is so long. Half of those buying homes for the first time are aged 32 or older, according to research by the National Association of Realtors. If these buyers choose the 50-year mortgages and they never refinance or make extra payments, they will not pay off their home loan until they are well into their 80’s.

What is an FHA Loan? Complete Guide to FHA Loans, Zillow, fha mortgage loans.#Fha #mortgage

What is an FHA Loan? – The Complete Consumer Guide

In this article:

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower s credit score can be between 500 579 if a 10% down payment is made. It s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

FHA Loan Requirements

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. You just need to have a minimum down payment of 10%.

The credit score and down payment amounts are just two of the requirements of FHA loans. Here’s a complete list of FHA loan requirements, which are set by the Federal Housing Authority:

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money can be gifted by a family member.
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers back-end ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA-qualified lenders will use a case-by-case basis to determine an applicants credit worthiness.
  • Typically borrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you ve managed your money in a responsible manner.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • The property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).

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Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

Another advantage of an FHA loan it is an assumable mortgage which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

Mortgage Insurance is Required for an FHA Loan

You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront -– or, it can be financed into the mortgage –- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

Upfront mortgage insurance premium (UFMIP) — Appropriately named, this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount, based on the borrower s loan-to-value (LTV) ratio, loan size, and length of loan: