Zillow Advice RSS: Discussion-Guide,Mortgage, http://www.zillow.com/advice/United-States%253B%253B%253B%253B%253B%253B%253B%253B/mortgage/discussion-guide/ Zillow Advice search results | Zillow Real Estate Interest-Only and Deferred-Interest Loans http://www.zillow.com/advice-thread/Interest-Only-and-Deferred-Interest-Loans/2369/ <wikipage><p><pagelink type="wikipage" dest="Interest-Only-Loan">Interest-only</pagelink> and deferred-interest mortgages are gaining increasing popularity, as homeowners like the idea of having the freedom to decide how much to pay against their mortgage each month. Interest-only loans offer you the option to pay only the monthly interest, or you can pay the monthly interest and as much of the principal as you'd like. Deferred-interest mortgages give you even more choices. In addition to the payment options of an interest-only mortgage, a deferred-interest loan also allows you to pay just a portion of the interest payment each month (the unpaid interest would then be added to your principal loan balance).</p><p>&nbsp;</p><p>By opting for an interest-only payment or a deferred-interest payment, your monthly mortgage payment is less -- often times, significantly less -- than it would be if you made a "conventional" interest plus principal payment. You gain the freedom to do with your available cash as you choose.</p><p>&nbsp;</p><p>To help you decide how much home you can afford, it's smart to think in terms of an interest <em>plus</em> principal payment each month. If you can only afford the minimum payment on your mortgage, you may be overextending yourself. Having a <em>choice</em> to pay only the minimum is quite different than only being able to <em>afford</em> the minimum.</p><p>&nbsp;</p><p>Is an interest-only or deferred-payment mortgage right for you? If any of the following situations apply to you, these loans may be just what you've been waiting for:</p><ul><li>If you need cash flow and have a low interest rate, paying interest only is the same as borrowing money at a great rate.</li><li>If you're paid on commission or depend on tips, and your income fluctuates month-to-month, interest-only or deferred-interest payments are great. When commissions are down, make the minimum payment. When you have an excellent month, pay the full payment or more.</li><li>If you invest the money you don't put toward your mortgage in something with a higher rate of return. For example, if you pay 6.5 percent on your mortgage but find an opportunity to make an investment that returns 9 percent, you will make 2.5 percent on your money that you wouldn't make if you had paid your full principal plus interest.</li><li>You have higher interest debt to pay off. Again, if you have credit card debt at 15 percent, it makes dollars and sense to pay that before mortgage interest debt at 6.5 percent.</li><li>If you expect to be in your home for less than 10 years.</li><li>If you live in an area with appreciating home values. Regardless of what you've heard, most of the country is still appreciating in value. In those areas, even if you pay mostly just interest on your home, you're likely gaining equity in your home. In some cases, you can gain equity even with deferred-interest minimum payments.</li></ul><p>Interest-only and deferred-interest loans can be great tools for money management. But, be careful not to stretch your budget too thin so that you have to rely on paying only the minimum payment each month. This can cause headaches down the road and isn't recommended. If you can afford the full payment but choose to have the payment flexibility that these types of loans offer, they just might be a fit for your financial goals.</p><br/><p>As always, make sure your mortgage professional goes over all the numbers and fully explains the payment scenarios. Don't assume anything. Get real numbers and you'll make the best decision.</p><p><pagelink type="external" dest="https://plus.google.com/116010607353595760297/posts?rel=author" nofollow="false">By Diane Tuman</pagelink></p><p><br/>&nbsp;</p></wikipage><br \><br \>1 reply Fri, 12 Oct 2012 21:35:00 GMT http://www.zillow.com/advice-thread/Interest-Only-and-Deferred-Interest-Loans/2369/ 2012-10-12T21:35:00Z Any luck with Hudson City Savings Bank Loan Mod? http://www.zillow.com/advice-thread/Any-luck-with-Hudson-City-Savings-Bank-Loan-Mod/449360/ Hi All,<br/>We have our mortgage held by Hudson City Savings Bank in NJ. The principal balance is 480k. I noticed that the Zestimate had climbed to 575k and hence thought I stood a chance for a refi. The "professional" appraisal came in at 400k. <br/><br/>We are struggling with a 5.25% mortgage rate and are desperately trying to get our payments lowered. Hudson City has not picked up the phone or answered an email in about 12 months. Goes without saying that I'll never take a loan from them ever again.<br/><br/>We have now submitted our file to Hudson City via NACA. <br/>Has anyone had any luck with these guys? <br/>Any other suggestions?<br/><br/>thanks in advance<br \><br \>56 replies Mon, 02 Jul 2012 18:00:00 GMT http://www.zillow.com/advice-thread/Any-luck-with-Hudson-City-Savings-Bank-Loan-Mod/449360/ 2012-07-02T18:00:00Z What is "credit enhancement?" http://www.zillow.com/advice-thread/What-is-credit-enhancement/347707/ When a lender submitted my HARP refi to Freddie Mac, I was told that I was ineligible for the following reason:<br/><br/>Volume 1, B24 .2 (a) : "If the Mortgage being refinanced was sold to Freddie Mac with recourse, indemnification, Mortgage pool insurance or another negotiated credit enhancement, it is ineligible for refinancing as a Relief Refinance Mortgage ? Open Access.").<br/><br/>Freddie Mac has no explanation for this "credit enhancement." I do not have mortgage insurance on my current loan, have never had mortgage insurance. I was told to contact the original loan servicer, which was Taylor Bean and Whitaker, who filed for bankruptcy and closed their call center in March. How is it that Freddie Mac can deem me ineligible for something they can't even explain? Thanks.<br/><br \><br \>27 replies Thu, 29 Apr 2010 04:09:00 GMT http://www.zillow.com/advice-thread/What-is-credit-enhancement/347707/ 2010-04-29T04:09:00Z Did You Know NC has $8,000 Down Payment Help for Eligible Buyers? http://www.zillow.com/advice-thread/Did-You-Know-NC-has-8-000-Down-Payment-Help-for-Eligible-Buyers/437538/ <p>The North Carolina Housing Finance Agency (NCHFA) has <u>$8,000 and $14,900</u> down payment assistance funds available for first-time home buyers and veterans.&nbsp; This money is at 0% interest, can be used for closing costs, and is available for homes up to $225,000.<br/><br/>More info is on the state website at www.nchfa.com.<br/><br/>This is a safe, affordable program offered by the State of NC.</p><br \><br \>12 replies Mon, 02 Apr 2012 15:47:00 GMT http://www.zillow.com/advice-thread/Did-You-Know-NC-has-8-000-Down-Payment-Help-for-Eligible-Buyers/437538/ 2012-04-02T15:47:00Z Finding a no income verification, home equity lender http://www.zillow.com/advice-thread/Finding-a-no-income-verification-home-equity-lender/513956/ Here are the facts...<br/><br/>My home is worth 2.1 mil and I have just 400K on the mortgage.<br/><br/>Problem is, as a contractor, the income I show on my tax returns is very low. I needed to use about 100K in credit card credit in order to complete the construction of the house and am now paying about 2K per month just to maintain the minimum payment.<br/><br/>Looking for a home equity loan with an eye toward debt consolidation. Would be more than happy to have them all cut in half and even have the bank issue pay off checks to visa etc at closing.<br/><br/>I've never been late with any payments (either on the house or CC bills), but because of the high debt I'm carrying, my score is only about 625 or so.<br/><br/>Logically one would think that an underwriter would look at my situation and see that somehow I've managed to meet my obligations for the past 4 years with no problem, so that trading a $2,000 monthly payment to Visa for a $500 monthly payment to a bank would be a nobrainer, especially given the equity I have built up, as there's zero risk to the lender. But thus far, I've been striking out.<br/><br/>Any thoughts?<br/><br/>Jake<br \><br \>11 replies Thu, 03 Oct 2013 15:15:00 GMT http://www.zillow.com/advice-thread/Finding-a-no-income-verification-home-equity-lender/513956/ 2013-10-03T15:15:00Z Buying multi-unit property w/ owner-occupied rate http://www.zillow.com/advice-thread/Buying-multi-unit-property-w-owner-occupied-rate/223266/ I am looking to buy a multi-unit property (ideally a fourplex) and live in one unit. I currently live with my husband in a house that he alone owns. We are getting a legal separation that will be finalized within a week. I'm staying with him until I find a property to buy.<br/><br/>The <a href="http://www.zillow.com/directory/real-estate-agents/">real estate agent</a> I've been working with thinks I'll have a hard time convincing a <a href="http://www.zillow.com/directory/lenders/">lender</a> to give me an owner-occupied rate. Is this typical? I have a 790 credit score and income around $110K/yr. I'm looking at properties in the $300K range. I have the 20% downpayment, but don't want to put 25-35% down as would be required of an investment property, or pay the higher rate.<br/><br/>Another complicating factor is that the majority of the properties I'm looking at have all of the units rented. Can I just give the tenants their 30 days notice to vacate when I take ownership, or do I typically have to move immediately after closing?<br/><br/>TIA.<br/><br \><br \>16 replies Tue, 14 Apr 2009 01:47:00 GMT http://www.zillow.com/advice-thread/Buying-multi-unit-property-w-owner-occupied-rate/223266/ 2009-04-14T01:47:00Z Ocwen denied my Loan modification http://www.zillow.com/advice-thread/Ocwen-denied-my-Loan-modification/516781/ Our mortgage is now being serviced by Ocwen. It's not Freddie/Fannie or FHA. So we don't qualify for any programs. We have been paying on time and I'm happy to say that our credit rating has improved. Unfortunately, we haven't been able to pay down on a lot of our cards, so our debt is slightly less than before. I contacted Ocwen in the hopes that it could help us get into something other than this interest only mortgage. Our house is still underwater, with the first and second mortgage we owe approx $477,000 and if we were lucky we might get appraised for $400,000 but most likely $350,000. Our house is unique in that fact that we have a true MIL suite, so I have two full kitchens and 2 laundry rooms and that's why I think we might be able to get it appraised at the higher rate. But then again, I may be dreaming.<br/><br/>Anyway, contacted Ocwen and asked for help. Sent the package in and it was disapproved for the HAMP which I knew would happen because we don't meet that criteria. Received a call last night from my RM. Ocwen can't offer any help because they think we aren't having trouble paying on our mortgage. <br/><br/>The RM tells me that according to their calculations, we are not in need of any help. So sorry, if anything changes, resubmit and have a nice day.<br/><br/>out of frustration I have googled and contacted [Promotion removed by Zillow moderator] loan modifications who only deals with Ocwen loans and guarantees a loan modification, they would not take any upfront fee from me untill the modifcation is approved.not really sure about them, or i might aswell take their help.<br/>Does anyone have any suggestions on what we can do?<br \><br \>65 replies Sat, 26 Oct 2013 16:51:00 GMT http://www.zillow.com/advice-thread/Ocwen-denied-my-Loan-modification/516781/ 2013-10-26T16:51:00Z Can I have two VA loan at once? http://www.zillow.com/advice-thread/Can-I-have-two-VA-loan-at-once/491435/ I currently have a VA loan for $350k and want to purchase a new house for $760k. My wife and I want to keep our current home. The county VA loan limit is $987,500. Am I eligible to have a second tier VA loan? If so what is my entitlement and how much down payment would I need to get that entitlement?<br \><br \>26 replies Thu, 09 May 2013 03:10:00 GMT http://www.zillow.com/advice-thread/Can-I-have-two-VA-loan-at-once/491435/ 2013-05-09T03:10:00Z Land/Lot Financing http://www.zillow.com/advice-thread/Land-Lot-Financing/6414/ We would like to purchase a 3+ acre lot in a subdivision and would like to finance the purchase. What kind of terms do <a href="http://www.zillow.com/directory/lenders/">lenders</a> offer for this type of loan? How many years maximum? What % down? Ball park <a href="http://www.zillow.com/Mortgage_Rates/">interest rate</a> in comparision to a regular <a href="http://www.zillow.com/mortgage/">home mortgage</a> loan? Thanks!<br \><br \>5 replies Sun, 16 Sep 2007 04:38:00 GMT http://www.zillow.com/advice-thread/Land-Lot-Financing/6414/ 2007-09-16T04:38:00Z South Carolina FHA Streamlines on Manufactured Homes http://www.zillow.com/advice-thread/South-Carolina-FHA-Streamlines-on-Manufactured-Homes/447744/ Does anyone in South Carolina do FHA Streamlines on manufactured homes?<br \><br \>9 replies Thu, 21 Jun 2012 18:06:00 GMT http://www.zillow.com/advice-thread/South-Carolina-FHA-Streamlines-on-Manufactured-Homes/447744/ 2012-06-21T18:06:00Z How does receiving Social Security Disability income affect loan process? http://www.zillow.com/advice-thread/How-does-receiving-Social-Security-Disability-income-affect-loan-process/42392/ <p>Looking to <a href="http://www.zillow.com/refinance/">refinance</a>. When I purchased this home I had a regular income. Now i receive SS and am unsure how it is treated. The co-borrower has regular income from employment.</p><br \><br \>15 replies Wed, 10 Sep 2008 23:15:00 GMT http://www.zillow.com/advice-thread/How-does-receiving-Social-Security-Disability-income-affect-loan-process/42392/ 2008-09-10T23:15:00Z New immigrant http://www.zillow.com/advice-thread/New-immigrant/504001/ we are an european family (50 y.o.) and next year we will move to the usa as resident (green card, permanet resident permit).<br/>We have yet no job in the usa, but we have some money in europe (we will tranfert it&nbsp;to usa), and a good credit too, and some rented houses (we are landlord...).<br/>if we would buy an house in the usa, could we get a mortgage ? We could put a down payment 20-50%, it's not a problem for us: would we be eligible for a mortgage ? thanks.<br \><br \>4 replies Sun, 28 Jul 2013 13:51:00 GMT http://www.zillow.com/advice-thread/New-immigrant/504001/ 2013-07-28T13:51:00Z Hard Money Loans No Longer Available to Consumers http://www.zillow.com/advice-thread/Hard-Money-Loans-No-Longer-Available-to-Consumers/458580/ <div>The Dodd-Frank and the Consumer Protection Act have made it virtually impossible for a consumer to obtain a hard money or private money loan anymore. In the wake of the financial crisis, many consumers have had hits to their credit scores and can no longer qualify for a bank loan. In the past, when one could not qualify at the bank, one could still turn to a private or hard money lender for a loan. Not anymore!<br/><div>The new Act has placed new restrictions on non-bank lending that did not exist before the financial crisis. The majority of hard money and private money lenders will no longer lend on owner occupied properties, for fear of regulators coming down on them. Ironically enough, it was the BANKS and not private money lenders who created this financial mess. Yet, it's the non-bank, private and hard money lenders who are now being regulated.&nbsp;<br/><div>In an effort to "protect" consumers, this new regulation is in fact "hurting" them even more by regulating the non-bank lenders. For example, a homeowner who needs to refinance and can't qualify at the bank, is now unable to obtain a loan from a hard money lender. Equally, a homeowner who can't qualify for a purchase loan at the bank also cannot obtain a private money loan.&nbsp;<br/><div>What are your thoughts on this topic?</div></div></div></div><br \><br \>13 replies Tue, 04 Sep 2012 20:47:00 GMT http://www.zillow.com/advice-thread/Hard-Money-Loans-No-Longer-Available-to-Consumers/458580/ 2012-09-04T20:47:00Z Mortgage co miscalculated Escrow http://www.zillow.com/advice-thread/Mortgage-co-miscalculated-Escrow/3320/ I bought a house a year ago, in Houston, TX. Fixed rate VA <a href="http://www.zillow.com/mortgage/">loan</a> at 6.1% for 30 years. Our original <a href="http://www.zillow.com/mortgage/">mortgage</a> was done by Network Funding, who sold the loan to Countrywide 3 months later. In June of this year Countrywide sold the loan again, to Citimortgage.<br/><br/>I just got a letter from Citimortage informing me that our escrow for tax & insurance was miscalculated, and we have a shortage of $3800 in escrow for the upcoming year. That is a huge miscalculation - our total combined taxes and insurance for a one year period are only about 5500. <br/><br/>Here is my question - what can I do? Is there anything I can do to punish the original <a href="http://www.zillow.com/directory/lenders/">mortgage company</a> that made the mistake? I have a hard time believing that it wasn't intentional - they were off by over 50%, and it seems to me they were trying to trick us with a lower monthly payment. Obviously, my husband and I should have checked with our local tax appraiser to see what the actual taxes were and not trusted the mortgage company, but we were new to the area, and assumed that the escrow for taxes was being calculated properly. Does our realtor have any responsibility? <br/><br/>Luckily, we have the money to pay the the increase, but it makes me livid that the mortgage company could misrepresent our monthly payment so badly.<br/><br/>What resources are available? I'm not trying to get a payout, but I'd like the mortgage company to feel some pain for making such a big "mistake".<br/><br/>Thanks,<br/>Jenn<br \><br \>44 replies Thu, 16 Aug 2007 18:50:00 GMT http://www.zillow.com/advice-thread/Mortgage-co-miscalculated-Escrow/3320/ 2007-08-16T18:50:00Z WHat are the Minimum Credit Scores Required for FHA Loans http://www.zillow.com/advice-thread/WHat-are-the-Minimum-Credit-Scores-Required-for-FHA-Loans/444776/ Many clients want to know what is the minimum credit score they will need to qualify for FHA loans. The information out there can be confusing especially if it is out of date!<br/><div style="text-align: right;" class="answer_body">Information on FHA loan requirements that was gathered even two years ago is now out of date. Modifications to the rules for required credit score requirements have changed.To get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Applicants with a credit score of 500 to 579 according the the FHA guidelines, are "limited to 90 percent LTV". That means you must put 10% down.&nbsp;<br/>Applicants who wish to qualify for 100% FHA loan financing with no down payment required the FHA 203(h), Mortgage Insurance for Disaster Victims home buyers will need a credit score of 500 or better.&nbsp;<br/><br/>To get specific information on different types of FHA Loans available go to:&nbsp;<br/><br/><a rel="nofollow" href="http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory">http://portal.hud.gov/hudportal/HUD?src=/program_offices/hou&hellip;</a>&nbsp;<br/></div><br \><br \>49 replies Wed, 30 May 2012 12:35:00 GMT http://www.zillow.com/advice-thread/WHat-are-the-Minimum-Credit-Scores-Required-for-FHA-Loans/444776/ 2012-05-30T12:35:00Z VA Loan Second-Tier Entitlement http://www.zillow.com/advice-thread/VA-Loan-Second-Tier-Entitlement/435007/ I currently live in my main home purchased using a VA Loan.&nbsp; I have used $55,600 of my entitlement on this home.&nbsp; I am relocating out of state due to a job transfer.&nbsp; Unfortunately, market conditions are preventing me from selling my home because I will take an approximate $30K loss by selling it.&nbsp; I will have a renter in my home that will cover my entire mortgage payment(principle/taxes/insurance).&nbsp; I am trying to figure out how to use my second-tier entitlement to obtain a second VA loan to purchase a home where I am relocating.&nbsp; How can I determine if I am eligible and how much loan I can get?<br \><br \>21 replies Tue, 13 Mar 2012 14:54:00 GMT http://www.zillow.com/advice-thread/VA-Loan-Second-Tier-Entitlement/435007/ 2012-03-13T14:54:00Z 5/1 ARMs without MI are not available? http://www.zillow.com/advice-thread/5-1-ARMs-without-MI-are-not-available/475283/ <p>I'm trying to decide how to refinance an FHA 5/1 ARM at 3.75% from May 2010 (UFMIP was 2.25%, MIP is 0.5%), and my choices are among the following:<br/><br/>1)&nbsp; FHA or conventional<br/>2)&nbsp; 5/1 ARM&nbsp;or 15 yr&nbsp;fixed<br/>3)&nbsp; stay at 95% LTV or borrow to get to 80% LTV (partially from savings, the rest either with a regular 2nd loan or 401k loan)<br/><br/>That produces a lot of potential combinations (8 i believe), but i was just told by a lender that a&nbsp;5/1 ARM without MI isn't possible because&nbsp;that the market doesn't like ARMs without MI.&nbsp; Anybody agree/disagree?<br/><br/>The result would be that,&nbsp;from my perspective,&nbsp;putting 20% down isn't very beneficial on an ARM unless you're sitting on a load of cash.<br/><br/>Also, for conventional, can someone give me an idea of what the typical rate hit is for LPMI vs BPMI?&nbsp;&nbsp;what&nbsp;should the PMI rate look like&nbsp;for 95% LTV on a $240K home ($228K loan) for either a 5/1 ARM or 15 yr fixed and a credit score of about 705?<br/><br/>Thanks</p><br \><br \>7 replies Tue, 22 Jan 2013 00:01:00 GMT http://www.zillow.com/advice-thread/5-1-ARMs-without-MI-are-not-available/475283/ 2013-01-22T00:01:00Z Refinancing VA loan to conventional? Would like to use VA loan to finance 2nd home purchase. http://www.zillow.com/advice-thread/Refinancing-VA-loan-to-conventional-Would-like-to-use-VA-loan-to-finance-2nd-home-purchase/416101/ We used my husbands VA loan to finance our 1st home mortage. We would like to refinance our existing VA loan to conventional in order to utilize the VA loan for our new home purchase. &nbsp;Our current VA rate is 5.5%.<br \><br \>11 replies Sun, 18 Sep 2011 20:44:00 GMT http://www.zillow.com/advice-thread/Refinancing-VA-loan-to-conventional-Would-like-to-use-VA-loan-to-finance-2nd-home-purchase/416101/ 2011-09-18T20:44:00Z VA home loan with bad credit http://www.zillow.com/advice-thread/VA-home-loan-with-bad-credit/501377/ 100% disabled vet(with special monthly compensation) with bad credit.&nbsp; When I first got out of the Marines in 2007, I was living off $940 month from VA benefits as they took over 2 years to process my other claims.&nbsp; Was very hard to keep up with payments on less than $1000 a month.&nbsp; I now have enough income to pay for a mortgage, yet it's impossible for me to get one with a credit score of under 600.&nbsp; I'm trying everything I can to rebuild it, but can't even get a credit card to help with that.&nbsp; With me and the lady friend together, we're pulling in over $7,000 a month, with hardly any payments on anything.&nbsp; Where can I possibly find somewhere who will look at my GUARANTEED BY THE US GOVERNMENT income, and help me out?&nbsp; Paying over $1000 in rent right now, but hate paying someone else's mortgage for them.&nbsp; Any help would be greatly appreciated!<br \><br \>90 replies Thu, 11 Jul 2013 17:00:00 GMT http://www.zillow.com/advice-thread/VA-home-loan-with-bad-credit/501377/ 2013-07-11T17:00:00Z How long do you have to owner occupy a property with an FHA loan before renting it? http://www.zillow.com/advice-thread/How-long-do-you-have-to-owner-occupy-a-property-with-an-FHA-loan-before-renting-it/241032/ &#65321;am buying my permanent owner occupied home. I am having an investment property out of state. and I am thinking to buy with <a href="http://www.zillow.com/fha-loan/">FHA</a> now, however &#65321;need to know if &#65353;&#65347;&#65345;&#65358;&#12288;&#65362;&#65349;&#65358;&#65364;&#12288;&#65359;&#65365;&#65364;&#12288;&#65364;&#65352;&#65349;&#12288;&#65360;&#65362;&#65359;&#65360;&#65349;&#65362;&#65364;&#65369; later on and under what circumstance?.<br \><br \>9 replies Sun, 31 May 2009 04:18:00 GMT http://www.zillow.com/advice-thread/How-long-do-you-have-to-owner-occupy-a-property-with-an-FHA-loan-before-renting-it/241032/ 2009-05-31T04:18:00Z