Resources - Mortgages
- 30 Year Mortgage Payoff Calculator and Amortization Schedule
You may have restrictions on how much of an extra payment you can make in any one year, or a pre-payment penalty. If you are taking out a home-equity loan, you will have to pay loan fees, and may not be able to borrow more money than you have equity in the home, although some people are eligible for home-equity loans greater than the current equity on the home.
- Construction Loans
A construction loan is used to finance the construction of improvements on real estate such as homes, apartments, and office buildings. The lender commits to the full amount of the loan, but disburses the funds in payments (draws) during construction. Draws are made to the owner or general contractor for that part of the construction work that has been completed since the previous payment. Before each payment, the lender inspects the work. The general contractor must provide the lender with adequate waivers that release all mechanics' lien rights for the work covered by the payment.
- Home Equity Lines of Credit
The loans generally referred to as equity loans are junior loans or second mortgages. These loans usually have adjustable interest rates, are secured by the borrower's equity in the property, and are amortized over fixed periods of time.
- Loan Fees
When the buyer secures a new loan to finance the purchase of a new home. The fee is usually paid by the purchaser at the time the transaction closes, withheld from escrow. If the buyer assumes the seller's existing financing, the buyer may pay an assumption fee, usually equal to one or two percent of the loan amount. Also, under the terms of some mortgage loans, the seller may be required to pay a prepayment charge or penalty for paying off the mortgage loan before the loan due date.
- Loan Points
Loan Points (Loan Origination Fees or Loan Discounts) are a fee charged to a borrower by lending institutions for the privilege of obtaining a loan. Each point is equivalent to one percent of the amount borrowed. Generally, the greater the risk to the lender, the larger the loan origination fees and the higher the loan interest rate.