The Various Kinds of Mortgages

If you are looking to buy your own home you need to get a mortgage to finance the deal. A mortgage is a type of loan that is usually spread over 25 years, although shorter and longer term mortgages are available. This loan then is repaid in monthly instalments which are arranged by whoever a person takes their mortgage out with. The house is yours as soon as you have your mortgage in place, however once your final instalment has been paid you will then get the deeds to your house. This means that you legally own the house outright.

Why are there so many types of mortgages?

There are various types of mortgages such as repayment, interest only, endowments and bad credit mortgages. Depending on your circumstances you will get a mortgage to suit yourself. There is no right or wrong mortgage and what is good for one person is bad for another, it is down to the individual to decide what is the best for them.

Different types of mortgages

There are many different kinds of mortgages and here are some of them on the market..

• 100% mortgage – these are mortgages where the lender gives the borrower the entire amount of the house, this is good if you have no money to put down. As well as 100% mortgages there are also 75%, 80% and 90% ones. The plus points of a 100% mortgage is that you don’t need to provide a deposit, however as you are borrowing 100% of the cost of the house you may find that the repayment term is longer and the payments are higher.

• Capped – this is where the monthly mortgage amount is capped at a certain price. If the interest goes above this price you will still only pay the capped amount, and if it falls you pay less. A capped mortgage is a very good if you want to know exactly how much you will be paying for your mortgage each month. However, there are not many lenders who will offer this type of mortgage.

• Endowment mortgages – this type of mortgage pays off the interest on the loan and is supposed to pay out a lump sum at the end of the loan period which should be enough to pay off the outstanding balance. Unfortunately this rarely happens and as a result these are not very popular today.

• Repayment mortgages – these are one of the most popular kinds of mortgage. With a repayment mortgage the interest and capital is paid off with a person’s monthly mortgage payments. This means that at the end of the loan the house being mortgaged will belong to the person who has taken out the mortgage. Repayment mortgages are ideal if you want to pay off your mortgage in full within a given timescale. Payments on these however can be higher than other mortgages.

• Bad credit, or sub prime mortgages – if a person has a bad credit score such mortgages may be their only option. Sub prime mortgages are becoming more commonplace today as the number of people with a bad credit score is increasing. Plus points for bad credit or sub prime mortgages are that they enable people who may have had a difficult time financially get on the property ladder. As a result though the payments will be high and so will the interest rate as borrowers are classed as being a risk. If the payments are made on time it is possible after a while to switch to a better mortgage.

With so many types of mortgages available it really is wise to do as much research into them as possible before opting for any particular one.

How do I obtain a credit rating for a mortgage?

I have just moved to Florida from the UK and wish to buy a house,do I need a credit rating to obtain a mortgage. I have owned a property in Sarasota for four years, will this count?

Did Countrywide bother to read any of the mortgage contracts they purchased from lower tier banks?

Did they ever refuse to purchase a single mortgage from local lenders on the basis that a person making $60k will NEVER be able to pay a $600k mortgage once the ARM kicks in?

Or did they simply buy every mortgage contract that crossed their in box?

My brother can no longer his mortgage payments, how can i take over i dont have good credit how will this work

It has been months since my father and I have moved into my brothers house and pay the mortgage. He hasnt had the money and his credit has been decling because of unwise choices, we dont want to lose the house and want to take over payments and keep it. The problem is my credit and my fathers is good either but between both of us we more than have enough money to pay the mortgage. How can we complete the transfer as easlily as possible.

Who is responsible for a mortgage note when the holder dies?

A month ago my father passed away. 4 years ago he bought me a house in FL. He was the only note signer, and the only one on the mortgage.
Under FL law my mother is on the deed, but not the mortgage or promissary note. He did not have a will that was signed. (he had a will but didn’t get to sign it in time, his death was to sudden)
Who is responsible for the loan now?
Can we give it back to the bank, without any adverse action?
Can I buy the home at a reduced loan amount?

What are the ramifications of selling a home you just bought having not paid off the mortgage yet?

Assuming a 30 year fixed mortgage after living in the home for 3 to 5 years.

What are my options if I would like to sell my home but have an underwater mortgage?

I live in Baltimore and desperately want to get out of the city. However, due to the housing crisis, I believe that I am currently underwater in my mortage. If I sell my home for less than my current mortgage, what are my options? I am not interested in a short-sale.

What are the mortgage choices for a guy in debt?

Ok this is the deal. I own my home valued around $75,000 before the remodel and I have no mortgage on it. Other debts are $25,000 in student loans, $40,000 in personal loan to family and $45,000 in credit card debt. I take home around $2400 a month. What can I do?

Who should take the take mortgage interest deduction?

My significant other just bought a condo together this year . She makes double my salary but I own another condo that I rent out (barely covers my mortgage). We are trying to decide who will benefit from taking the mortgage interest deduction and how we will get the most money back from our taxes?

is it legal to change the terms of a mortgage after a loan commitment letter was issued?

We just got a commitment for a mortgage to close in a week, and after we, the title company and our realtor all received the loan commitment and scheduled the closing, the lender called back and said the terms were different than they’d said and issued a new commitment letter. Is this legal? We live in Florida if that matters.
We just got a commitment (CLC with NO stipulations) for a mortgage to close in a week, and after we, the title company and our realtor all received the loan commitment and scheduled the closing, the lender called back and said the terms were different than they’d said and issued a new commitment letter. Is this legal? We live in Florida if that matters.
Okay, I obviously need to clarify what happened - we got an original commitment letter prior to appraisal - based only on the appraisal. This was for 100% financing (what we applied for). 3 days later we got a final commitment letter - clear to close, for 100%. 2 hours later they sent another commitment letter, saying the first was a mistake for 95% financing. The appraisal, btw was for 15,000 over purchase price. Nothing else could possibly materially have changed in two hours. No new disclosure was given to us - and the lender knew we had to have commitment by Sunday as term of our contract. BTW - we did not misstate anything, provided every document that was asked for (one at a time 2 days between) promptly. I think we were bamboozled. I just want to know what my recourse is other than walking away and now probably losing the house. We had in fact been approved at 100% by two other lenders, just with stated terms not quite as good.