Danger of Deferred Interest Mortgages: Understanding the Risks of Negative Amortization Home Loans

By: Hunter Lending Team

Published on: 27/08/2024

Negative amortization or "neg am" occurs when the minimum payment on a mortgage covers less than the monthly interest charged, causing the balance of the loan to increase instead of decrease. This can happen with negative amortizations loans like a payment option ARM, where payment choices can be calculated based on COFI - The 11th District Cost of Funds Index which demonstrates the average interest rate paid by certain banks in Arizona, California and Nevada or on MTA.

Mortgage Blogs

9 Tips on Applying for a Second Mortgage

By: Hunter Lending Team

Published on: 27/08/2024

People usually apply for a second mortgage or home equity loan when they need money for debt consolidation, to pay large expenses or for home remodeling and home improvement. What type of mortgage loan you select, depends on your needs, but the application and approval process is similar for both. These nine tips will help your loan process be as hitch-free as possible. Consider the second mortgage terms, pre-payment penalty for early pay off, and of course the interest rate & closing costs.

Mortgage Blogs

Home Equity Loans The Best 2nd Mortgage for Financing Home Improvements

By: Hunter Lending Team

Published on: 23/08/2024

Tired of looking at those avocado green kitchen appliances? The wood paneling and shag in your family room? The worn fiberglass tub enclosure in the guest bath? Home improvement is sweeping the country. Approximately half of fixer-uppers are do-it-yourself, while the other half is contractor driven. People are financing these improvements with home equity loans.

Mortgage Blogs

Non Comforming Loan Comparison: Adjustable Rate Mortgage Versus Fixed Rate Mortgage

By: Hunter Lending Team

Published on: 07/08/2024

Are all mortgage loans the same? Or can making a choice between one particular type of mortgage get you in trouble if you aren’t careful. In the case of an adjustable rate mortgage versus a fixed rate mortgage it is true that all mortgages are not alike. Of course in many cases the type of refinance loan you can secure has to do with how good or bad your credit has been over the years.

Mortgage Blogs