Home | Resources | Advertisement

mortgageAtLarge.com                                                              

                                

Home Page Bad Credit Mortgage Mortgage Essentials Top Mortgage Markets Mortgage Lenders Refinance Companies Bad Credit Lenders Buying & Owning Home Bad Credit Mortgage FAQs Mortgage FAQs
 

Reverse Mortgage Refinance Essentials Bad Credit Refinance Foreclosure

Residential Mortgage

Buying a home has been a part of the American dream for decades, but most people don't have the cash in hand to buy a home.  For those that cannot do this, and the majority of people cannot, a residential mortgage is the best option.  To better understand what a residential mortgage is and how it can be used to purchase a home; let's go into some detail as to how these types of mortgages work. 

First of all, there are hundreds of lenders out there, primarily banks that are willing to lend people the money that they need in order to finance their home purchase.  These lenders provide loans at different rates of interest.  The difference between these loans and say a car loan is the length of the loan.  Mortgage loans are amortized over a great deal of time, 30 years in most cases, which makes the monthly mortgage payment that is required of the borrower quite low considering the amount of money that is being borrowed.   Mortgage lenders collect a payment each month that is applied to both interest and the principle amount in order to pay off the balance of the loan and to make money that is needed in order to keep the banks in operation. 

Residential mortgages come in many shapes and sizes which allow a person to even get a mortgage refinance on the current mortgage they already have. Mortgage refinancingalso allows a person to change from an existing mortgage product to another. There are even mortgages out there that can cater to bad credit mortgage programs for those that have less than perfect credit. The programs out there are of a great variety and offer different strong points. The key to understanding these programs is by understanding the guidelines and requirements that they have in order to get these types of loans. 

While most of the people that buy houses rely on the conventional loans and their guidelines, there are special residential mortgages made for investors, and people who want to use their home to get retirement money and so forth.  With all of the options out there, it is a great idea to always do your research and find out which mortgage program will be right for your home purchasing needs and budget constraints.  Meeting with the bank directly, or meeting with a loan officer is a great way to learn more specifics about a certain program in order to answer all of your questions and to make the purpose of the program more clear. 

 

  10 Steps to Home Ownership:

Step 1: Are You Ready?

Step 2: Hire a Realtor

Step 3: Get Loan Pre-approval

Step 4: Search for Homes

Step 5: Choose a Home

Step 6: Obtain a mortgage

Step 7: Make an Offer

Step 8: Insure Your Home

Step 9: Close the Deal

Step 10: Avoid Foreclosure

 

 Useful Related Articles

Mortgage Refinancing

Refinance with Bad Credit

Why You Should Refinance

Mortgage Refinancing Tips

When Not to Refinance

Best Time to Refinance

Mortgage Refinance Rates

Is Refinancing A Good Idea?

Refinancing Mistakes

New Home Mortgage Tips

Bad Credit Mortgage FAQs

Mortgage Rate Quotes Tips

Second Mortgage Essentials