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What is LTV? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/what-is-ltv.html
Why Should You Care About LTV? Why is LTV Important? The Impact of Appraisals on LTV. LTV and Underwriting Guidelines. Loans that meet the underwriting guidelines for Fannie Mae and Freddie Mac in the United States must meet a loan-to-value ratio. In the United Kingdom, LTVs as high as 125% were commonly approved prior to the mortgage crash in the late 2000s. In today’s economic environment, most home loans in the UK are at or below 75%; however, loans with LTVs up to 90% are approved for those with ...
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How to Do a Private Mortgage? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/how-to-do-a-private-mortgage.html
How to Do a Private Mortgage? The Risks of a Private Mortgage. Will the financial security of the lender be at risk if the borrower defaults on the loan? Who else that is personally connected to the transaction could be hurt or suffer if the mortgage goes into default? As a result of these potential consequences, many consumers choose to seek out a private note through a business or company offering these services to avoid the potential family issues. How to Do a Private Mortgage Agreement. A good idea f...
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What is My House Worth? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/what-is-my-house-worth.html
What is My House Worth? A common question asked by home owners in today’s market is how much is my house worth? What is the Fair Market Value of a Home? The fair market value, or FMV. Fair Market Value Definitions. Fair market value is actually defined under United States tax law. The specific verbiage is cited in the United States Supreme Court. Decision in the Cartwright case:. United States v. Cartwright. Other authoritative definitions of fair market value in the United States are also found under th...
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Is a Private Family Loan a Good Idea? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/private-family-loan.html
Is a Private Family Loan a Good Idea? What is a Family Loan? Accounting for Tax Laws. There are a number of tax law pitfalls that can befall family home loans. If the family lender forgives loan balances, payments, or charges too little interest on the loan there can be issues that arise when attempting to claim federal and / or state tax deductions on the home loan interest. Although it does not seem intuitive, if the family lender does not charge at least the Applicable Federal Rate. Taking the time to...
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Private Mortgage Dangers | Private Mortgage Lenders
http://www.privatemortgagelenders.org/private-mortgage-dangers.html
How Does a Private Mortgage Work? As mentioned, a private mortgage. If you don’t have 10 or 20% of the loan value available in capital funds when closing the loan, potentially have to pay a balloon payment during the life of the loan, and other legal differences from publicly backed notes. 1 Requiring a Good Faith Payment Prior to Closing. 2 Thinking You Can’t Qualify for a Publicly Backed Mortgage. A number of private mortgage lenders. 3 Not Knowing what to Expect with a Private Mortgage. Is relying on ...
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Home Appraisal Tips | Private Mortgage Lenders
http://www.privatemortgagelenders.org/home-appraisal-tips.html
Why Do You Need to Use a Professional Home Appraisal Service? Many private lenders will start negotiating with potential borrowers based on the fair market value of a home. Before closing on a loan; however, most will require the use of a professional home appraisal. The following are a number of tips that consumers can use when preparing to have a house appraised prior to obtaining a private mortgage loan on a property that you already own or reside in. 1 Take time to tidy up the home and yard. For home...
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Private Mortgage Loan Investments | Private Mortgage Lenders
http://www.privatemortgagelenders.org/private-mortgage-loan-investments.html
Private Mortgage Loan Investments. How Does Private Mortgage Lending Work? What are the Benefits of Private Mortgages? A private mortgage provides a number of advantages for investors. How are Private Mortgages Normally Structured? Is not required. There are a number of investment agencies; however, that will offer private mortgages to mortgagors who don’t have sufficient equity in the home or available to put into a down payment. How Does PMI Work? How Does LTV Impact Private Mortgages? Despite rumors t...
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What is PMI? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/what-is-pmi.html
What is Loan to Value (LTV) Ratio? When taking a look at PMI, a common term that arises is the LTV ( loan to value. PMI is not used for mortgages made by pubic mortgage lenders or government agencies. For programs such as VA or FHA mortgages, there is an equivalent insurance to PMI, but is managed and enforced in a different manner. A primary difference in the two insurance types, is that unlike PMI, insurance on VA and FHA loans. Continues to be paid after the LTF has dropped below the 80% threshold.
privatemortgagelenders.org
What is a Private Mortgage? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/what-is-a-private-mortgage.html
What is a Private Mortgage? How Do Private Mortgages Work? In today’s home buying environment, private mortgage options. Do Private Mortgage Companies Require PMI? Once there is sufficient equity in the home or property being financed before closing on a private mortgage. Advantages and Disadvantages of a Private Mortgage for Borrowers. The primary advantage of a private mortgage. Advantages and Disadvantages of a Private Mortgage for Lenders. How to Avoid Problems with a Private Mortgage. This entry was...
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What is LPMI? | Private Mortgage Lenders
http://www.privatemortgagelenders.org/what-is-lpmi.html
How Does LPMI Work? Lender paid mortgage insurance is a bit of a misnomer, as the home buyer will still be paying for the insurance premium; albeit under a different name. There are several variants of LPMI in use in the current mortgage marketplace. These include paying a lump sum up-front in the life of the loan for the insurance, making an adjustment to the mortgage rate, or making larger mortgage payments every month. If lender paid mortgage insurance. Factors to Consider Before Electing to Pay LPMI.
