Home | Ask Your Question | Mortgage Glossary
Find me a lender for:  
100% Mortgage Financing - Understanding Zero Down Mortgages By Carrie Reeder

100% mortgage financing can help you buy a house with little out of pocket expense. So whether you are a first time homebuyer or an investor, you can easily purchase a home. But not all zero down mortgages are the same. So you need to be careful in compare financing offers and finding terms that best meet your budget goals.

Reasons To Pick Zero Down Mortgages

Zero down mortgages are ideal for those renting but who want to get into a house with little cash. For the same amount you pay on rent, you can build home equity through appreciation and principal payments. 100% mortgage financing is also an option for those looking to buy a house as a second property or as an investment. Without tying up a lot of capital into a down payment, you can secure financing with reasonable rates.

Difference In Zero Down Mortgage Terms

Lending companies treat zero down mortgage terms differently. So it is important that you know what kind of contract requirements you are agreeing to. With 100% financing, you are still required to pay for closing costs, which can add up to thousands. The advantage to these terms is that you have a good idea of the cost of fees. You also have the opportunity to lower rates or change terms by paying additional points at the signing. Loans that require no money at closing are often called 102% mortgages. Closing costs are still charged, but they become part of the principal. So your loan amount is greater than the propertys selling price, up to 5%. You will also be paying interest on the fees.

Finding The Lowest Costing Financing

It is especially important to look at the APR number when comparing zero down financing. With this number you can determine the real cost of the loan, regardless of when closing costs are paid. When analyzing costs, take a look at the fine print to determine when application fees are due. Also consider that you may have to pay premiums for PMI if you choose a conventional loan. Subprime lenders waive this requirement in most cases.

View our recommended Mortgage Brokers Online.

Carrie Reeder owns ABC Loan Guide, an online resource with information about Mortgage Refinancing Online and Home Equity Line of Credit lenders.





See Also:

Lowest Mortgage Rates UK Lowering the Cost of Mortgage
Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time ... more...

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK
Add the term online and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire ... more...

Types of Loans
Loan Types What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the ... more...


More on mortgage...

Search More Info On:

  • Mortgage
  • Closing Costs
  • Mortgage Closing Costs
  • Closing Loan
  • Mortgage Terms
  • Closing Mortgage
  •  

    Shop For Your Mortgage Now!
    Shop For Your Mortgage Now!

    You'll be re-directed to Top-Lenders.com

    Want to Know Your Rate?
    Get Customized Mortgage Quote Instantly

     
    ExplainingMortgages © 2005 - 2009