3 types of mortgage loans for homebuyers -Fixed Rate Mortgage -fixed interest rate -front loaded interest -10, 15, 20, 30 -Adjustable Rate Mortgage -Rate.

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Presentation transcript:

3 types of mortgage loans for homebuyers -Fixed Rate Mortgage -fixed interest rate -front loaded interest -10, 15, 20, 30 -Adjustable Rate Mortgage -Rate changes every year -not widely offered -changes with the economy -Interest Only Loans -choice of fixed or Adjustable -good choice for stable jobs and frequent raises -hard to get 2 nd loan with no equity on the house Loans Homes Mortgage Calculator About 2% is home insurance Average Monthly Payment on a house bought is %10, includes Insurance and everything

Loans Homes Part 2 FHA Loan -First time home buyers loan -Can only be used once -best interest rates -Very Low down payment VHA Loan -Only for Military personal -Little or no down payment -Can use this benefit more than once

Loans Cars -Loan from a bank that they choose or you can choose -Maximum loan time is 5 years -Sticker price is NEVER the final amount -taxes are large -Title and registration is kinda low -Destination charge for the vehicle here -Documentation Fee -Guaranteed Auto Protection -All vehicles that have a loan on them must have full coverage auto insurance by state law

Loans Cars -Leasing a car does not require a loan -You are renting a car for a contracted amount of time -Some contracts limit distance that can be driven a year -Full insurance coverage is mandatory by state law -After a designated amount of lease time, you may purchase the car at a cheaper rate. -As a leaser, you will never own the car until final purchase

Loans Personal Loans -Secured Personal Loan -secured with collateral. A boat or car or home. -If you don’t pay the loan, they take the item you had on collateral -You MUST OWN the item on collateral -Lower interest rates Unsecured loan -Based only on credit worthiness and credit score -Higher interest rates even if credit scores are good -Home Equity Loans -Equity is Money invested in your land -An appraiser comes to the house and calculates how much your home is worth. -If you owe more than its worth, there’s no equity -If the appraised value is higher than you owe -you have that much equity