Do you know what mortgage insurance is?
Many people confuse mortgage insurance with mortgage life insurance, mortgage disability insurance, or even homeowners insurance. These are all very different types of insurance - no wonder there is such confusion! Mortgage insurance is generally required when the down payment on a home is less than 20%, and it is designed to protect the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and this can mean a higher monthly mortgage insurance premium. Depending on the specifics of your information, there are ways in which mortgage insurance can sometimes be avoided at the time of purchase, or dropped altogether at some point in the future. Many lenders now offer a single loan that doesn’t require Mortgage Insurance. These generally have a slightly higher rate.
If you have to choose, which one is best for you?

Lets look at one home purchase with three scenarios

$200,000 home
$180,000 loan (with $20,000 down)

Scenario A
One loan WITH mortgage insurance
Payments of $1,320.00 plus mortgage insurance payments of around $80.00 per month for a total of $1,400 per month

Scenario B
One loan WITHOUT mortgage insurance (8

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Real estate investment has become an extremely popular way for people to try to make money. Owning an apartment or multi family housing unit can be a way to wealth, however, real estate investing requires a lot of time, knowledge and up-front capital.

Apartment building loans are often offered on two different levels. The first usually requires a minimum loan of $500,000, is a smaller unit, but comprised of no less than five units. The second is for loans over $3,000,000, and is designed for financing much larger units such as large apartment complexes, student housing, or senior or assisted living facilities.

Most lenders will provide financing for units in good condition, and have little deferred maintenance. If the building is in poor condition, you may not qualify for a loan, or have to pay a much higher down payment.

Apartment building loan sources are numerous to say the very least. Before speaking with anyone it’s helpful to have a list of question you may want to ask. For example:

Is the property fully leased (about 95%)?

Do you want to borrow more than 80% of today’s value?

Are you willing to re-finance the property or are you planning on selling in the next 3 years or so?

Will you accept a loan with a large prepayment penalty?

Do you expect leasing activity in the building over the next 3 years(either from existing or new tenants)to increase the property value greater than 25%?

If the property value is increasing more than 25% over the next 3 years, will the loan request today be 75% or less of the increased value?

Will 50% of the building leases expire in any one of the next 3 years?

Are you installing land infrastructure, gutting the building or converting the use?

Is the property value greater than $10 million?

Apartment building financing, or multifamily property financing, is in a constant state of change. As a result, multifamily finance providers must have thorough knowledge and awareness of available debt programs and be prepared to quickly analyze financing options.

Visit Security National Capital today to learn more about apartment building and multi family property loans.

Michael Southard is the Vice President of Security National Capital.

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It cannot be denied that home purchase is a costly deal. Very few people can deposit enough money to buy a house. Rest of all depend on mortgages to own a house. Fortunately there are various types of mortgages available in the market. Thus there are mortgage for a first time buyer also. It is a useful mean to buy a house for the first time in a favourable manner.

A first time buyer mortgage makes it easy to bridge the gap between tenancy and house owner. There are plenty of mortgage packages for first time buyer. What a first time buyer need is to choose the most suitable one. Being a first time buyer if you are not competent enough to make a choice then you can take mortgage advice.

Mortgage for a first time buyers remains available irrespective of their status. You may be a council tenant, housing association tenant or living with your parents; even then you can qualify for a first time buyer mortgage. A first time buyer mortgage will remain available even if you have a bad credit record. But you have to be a little careful while choosing a mortgage package. It’s because a mortgage is a big deal and puts you in long term financial commitment.

Therefore, it is necessary for a first time buyer to do some homework before accepting a mortgage deal. Among the things to be considered are the amount you can afford to borrow, the rate of interest of the mortgage, its duration and the fees you have to pay. It is recommended to dedicate some time for searching out the suitable mortgage.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist. For more information visit us at http://www.easy-buy-to-let-mortgages.co.uk

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