Home Mortgages

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Home Mortgages by Mind Map: Home Mortgages

1. The Annual Percentage Rate, APR, is the total cost of borrowing money for a mortgage. It takes into deliberation, the interest rate, discount points, closing fees, origination fees/cost and other fees involved in the transaction.

1.1. The APR helps you compare and contrast various mortgage possibilities, because all lenders use standard federal requirements to calculate the APR. Lenders are also obligated by law to supply the precise APR for your mortgage in the Loan Estimate.

2. Home loan interest rates are affected by several influences, such as, credit score, debt-to-income ratio, inflation, property type, loan duration and current housing market.

3. Veterans United Home Loans

3.1. Serves veterans and active-duty military personnel.

3.2. Available in all U.S. states.

3.3. Full range of government loans, including USDA, VA and FHA.

3.3.1. VA Loan

3.3.1.1. 30-Year Fixed VA Loan 4.625% interest rate and 4.893% APR.

3.3.1.2. 15-Year Fixed VA Loan 4.125% interest rate and 4.587% APR.

3.3.1.3. 0% down payment.

3.3.1.4. VA Home Loans are backed by the government so banks do not compel you to buy private mortgage insurance.

3.3.1.5. The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive rate than non-VA loans.

3.3.1.6. Since the loan is backed by the government, banks undertake less risk and have less rigorous qualification requirements for VA Loans, making them easier to qualify for.

3.3.1.7. The first time using the VA Home Loan, the funding fee is usually 2.15% of the purchase price of the home. Following use of your VA Loan benefit, the fee is 3.3%, which can typically be added to the overall loan amount.

3.3.1.8. The VA also restricts closing costs for veterans and permits sellers to pay most or all of those expenses. Many Veterans United Home Loans borrowers don't have money due at closing.

3.4. Largest lender of VA home mortgages.

4. CitiMortgages

4.1. Numerous purchase mortgage options, including VA and FHA.

4.1.1. The FHA loan is a mortgage insured by the Federal Housing Administration (FHA). FHA loans are offered as both fixed rate and adjustable rate mortgages.

4.1.1.1. 30-Year Fixed FHA Loan 4.75% interest rate and 4.921% APR and 0.5 Points

4.1.1.1.1. FHA Loans are ideal for first-time home buyers, borrowers with less than a 20% down payment, those with a low credit score, self-employed borrowers and those with a limited employment history.

4.1.1.2. 30-Year Fixed FHA Loan 4.625% interest rate and 4.839% APR and 1.0 Points

4.1.2. FHA loan is a government-backed program that offers lower down payments and fewer credit score limitations and constraints than conventional mortgages.

4.2. Offers low down payment products with no private mortgage insurance.

4.3. Available in all U.S. states.

4.4. Minimum down payment of 3%.

4.5. Ideal for first-time home buyers or those with weak credit.

4.6. Willing to work with those with low credit scores and considers alternative credit data.

5. Lenda

5.1. Convenient online services and experience.

5.2. Refinances with zero origination fees or broker commissions.

5.3. 620 minimum required credit score to qualify.

5.3.1. Current rates in California for a 30-year fixed interest rate for a conventional home loan is 4.42%.

5.3.2. California rate for a 15-year fixed rate loan is 3.81% interest for a conventional home loan.

5.3.2.1. Conventional home loans are insured or guaranteed by the federal government.

5.3.2.2. Conventional home loans are seen as riskier since they are not backed by the federal government.

5.3.2.3. With a down payment of at least 20% on a conventional mortgage, the borrower does not have to pay mortgage insurance premiums.

5.3.2.4. As little as 3% down payment is available on some conventional mortgages.

5.3.3. California rate for a 5/1 adjustable-rate mortgage (ARM) is 4.12% interest.

5.4. Minimum down payment of 5%.

5.5. Only available in its lending territories of Arizona, California, Colorado, Illinois, Oregon, Texas, Washington and Pennsylvania.

6. Differences between these mortgage agreements have been the interest rates, APR, down payment requirements, loan durations, credit score requirements, national availability of lending authority, additional fees such as closing cost and lender fees and loan types. Conventional home loan is not government-backed like the VA and FHA loans and is harder to qualify for.

7. Similarities between these mortgage agreements have been the option of having a 30-year fixed rate loan or a 15-year fixed rate loan. CitiMortgages and Veterans United Home Loans both offered VA and FHA loans but with differing lender fees. CitiMortgages, Veterans United Home Loans and Lenda have all been available in California.