Today there are many mortgage products out there, and there are times that it’s confusing as to which one is best. You aren’t always sure which one is going to work the best for you and your unique circumstances. Well, your worrying is over, as we’ll cover the basics of your mortgage right here in this article.
Mortgage for Self-Employed
Like the name says, this mortgage is particularly designed for those who aren’t following a regular nine to five work day. It’s for those who have become their own bosses. Keep in mind that whenever you get a mortgage for people self-employed, you won’t be seen a prime candidate. Lenders wouldn’t go scrambling after you because they see you as being unable to produce any steady income over the years. But this is a fairly new kind of mortgage to get, and some forms won’t require proof of income, and some lenders won’t even verify you income. So the convenience of these mortgages makes up for not getting the best rates.
This type of mortgage is one where you replace another loan bearing different terms. Refinancing is simply obtaining a new loan for paying off an existing loan. Most of the time, people use these types of mortgages whenever they’re in tied up with a current mortgage, in order to get more favorable terms. The market rates fluctuate often, so when one comes along that’s friendlier, why turn away?
Yes, refinancing is a great mortgage for those who find themselves involved in one certain mortgage and want to improve their current cash flow, plus reduce their risks with their current loan.
Bad Credit Mortgage
With any mortgage, it’s important to have good credit. This will be the basis of your loan approval. But sometimes people fall into debt over missing a payment on their interest. This results in bad credit status. But does that mean they can’t get their dream house?
Well, not necessarily. Thankfully there are bad credit mortgages for those with credit that’s less than perfect to give them a second chance. There are actually lenders who are willing to approve these types of mortgage applications for people who used to have good credit but had a little mishap along the way.
Due to the nature of these mortgages, a borrower isn’t always given their best rates, but this is understandable because they’ve become more of a risk to the lenders. If borrowers with bad credit are really passionate about buying that dream home, then high interest rates and stricter terms shouldn’t drive them away.
These are a few of the mortgage types out there. Knowing which one is going to help you the most depends on your current situation. If you aren’t sure, then consult with a financial expert.