John Harris is a researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit Scripps Ranch Homes for Sale
As Congress and professional real estate organizations debate the best ways to keep homeownership available to most Americans, many first-time homebuyers find themselves confused by their mortgage loan options. The government’s attempt to protect borrowers from unscrupulous lenders also hinders the ease of first-time real estate buyers in obtaining these loans. One of the best ways to find a loan that will work is to know the options that exist, the benefits, and the risks.
Conventional Real Estate Mortgage Loans
Traditional 30-year and 15-year fixed loans are widely available, and the most popular options. But adjustable rate loans, where the interest rate fluctuates with prime lending rates, are also very popular. In fact, interest rates on 5/1 ARMs dropped at the end of June to an average 6.04%. In a 5/1 ARM the rate of interest on your real estate mortgage is set for the first five years, then fluctuates yearly after that.
Low/No Down Payment Real Estate Mortgage Loans
In 2006 USA today reported that 43% of real estate mortgage borrowers didn’t put any money down on their home loans. While this is more difficult with stricter regulations, lower and no down payment real estate mortgage loans do exist. Typically these are available to those with a strong credit and stable work history, but little cash on hand.
Government Funded Real Estate Mortgage Loan Programs
First time homebuyers and low-income borrowers are eligible for a wide variety of government insured real estate loans. The Federal Housing Authority (FHA) funds many of these. Specific programs exist for community workers like teachers and police officers, Native American Indians, and residents of low-income housing projects. Ask your real estate agent or mortgage loan officer what you qualify for.
Alternative Real Estate Mortgage Loan Programs
The real estate reality is that traditional mortgage loan options don’t work for everyone. This is why loans evolved that let you tap the equity in your home, pay off the interest first, or forego Private Mortgage Insurance. These can all be great tools and have their place- when applied ethically and with financial awareness.
Both the National Association of Realtors and various Senate subcommittees are working on developing guidelines that protect borrowers without making obtaining a real estate mortgage out of reach for the general population. Many concerns have risen from defaults on Alt-A, interest only, and other alternative loans.
In fact, Alt-A real estate loans, which give non-traditional underwriting options to good credit candidates with issues like poor documentation or expanded debt-to-income ratios, are showing high delinquencies. Standard & Poors reports that as of June 2007, the defaults on Alt-a Loans for 2006 were four times higher than in 2004.
These loan options may still work in your individual situation. Balance your need for a lower interest rate, lower monthly payment, or lower down payment against your ability to handle the balloon payment or interest increase at the other end of your real estate loan.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Harris Ranch Ideal Stop on Long California Drive
- Harry Potter and the Author J.k. Rowling
- Harry Potter and the Deathly Hallows - Ending or Enigma?
- Bring Out the Wizard in Kids With a Harry Potter Quiz
- Harry Potter and the Deathly Hallows: a Spectacular Conclusion
- Find your Harry Potter on an E-book Store
- The Western Isles/outer Hebrides and Harris Self Catering Accommodation
- J.k Rowling: the Magician Who Created Harry Potter




Traditional Christmas Cookie Recipes
By: Patrick Carpen | 27/11/2009This article includes three great old-fashioned recipes for the top three traditional Christmas cookies.
Best movie downloads ever
By: Mel C | 27/11/2009If you want a way to entertain and relax yourself to the max, download a movie! Movie downloads have becoming more and more popular and there are many convenient ways to download movies of your favourite genre.
Finally cable TV in your area!
By: Mel C | 27/11/2009Getting cable television has many advantages. Cable TV will offer you many channels and the amount and type of channel will depend upon the package you take.
Download your favourite TV shows for hours of fun
By: Mel C | 27/11/2009Downloading television shows using your Internet connection is just great since you can watch your favourite TV shows from anywhere where you have Internet access. It could be your laptop, PC, mobile, etc. Find out more how to download and enjoy hours of fun!
When You Need a Good General Dentist in Toronto
By: Tim McDonald | 27/11/2009When a good smile is the order of the day, nothing compares to a good general dentist. Studio B Dental offers a variety of procedures to enhance your smile using both cosmetic and general dentistry. From porcelain veneers to teeth whitening, cosmetic dentistry changes all of their patients, encouraging them...
How to download movies
By: Mel C | 27/11/2009When it comes to the Internet, together with many social networks and interesting web sites, downloading movies became a very popular topic. However, there are few things one should keep in mind and pay attention when downloading.
Finding the Right Toronto Family Dentist For You
By: Tim McDonald | 27/11/2009When it comes to taking care of your families oral hygiene, visiting a family dentist in Toronto is one of those tasks that is easy to put off. It's not urgent, or not critical to one's overall health, but it is important - if even for your families overall hygiene....
Compare the best cable packages
By: Mel C | 27/11/2009This article will discuss comparing cable packages and making comparisons between the best cable packages. Some interesting facts and information about cable packages will be mentioned so you have a better understanding of them.
Encinitas Offers Unparalleled Charm And Beauty
By: John Harris | 15/10/2007 | Real EstateA diverse community in San Diego County, Encinitas is home to all of the beauties of Southern California. With stunning natural landscape and a prospering local economy, many real estate investors are flocking to this booming coastal town, eager to build or buy property. Homes for sale in Encinitas may...
Homes For Sale San Diego Brimming With Beauty
By: John Harris | 15/10/2007 | Real EstateOnce rated "America's Finest City," San Diego is one of the most prominent areas in Southern California. Those purchasing homes for sale in San Diego will reap numerous rewards. Dazzling coastal land, impressive real estate, and desirable climates surround these homes for sale. San Diego real estate continues to grow...
Vista Celebrates History Of San Diego County
By: John Harris | 15/10/2007 | Real EstateResiding in the northern area of San Diego County, Vista real estate is alive with the beauty of Southern California. With stunning natural attributes, ideal location, and prospering economy, the vicinity has become a popular option for potential home buyers. The historic character of the Vista area adds to the...
San Diego Realtors Assist In Home Buying Process
By: John Harris | 15/10/2007 | Real EstateBuying a home is often the most important, yet grueling, process you will ever encounter. Selecting a dedicated San Diego realtor can ease some of the pressures, while also allowing you to find the home you have always wanted. The Committed San Diego Realtor Makes Buying a Home Easy A reputable San...
San Diego Realtors Make Home Buying Easier
By: John Harris | 19/09/2007 | Home & FamilyOne of the most notable locations in Southern California, the San Diego area is becoming a prime spot to buy a home. Pleasant climate and beautiful real estate are just a few of the reasons that individuals are flocking to this charming community; and with many more advantages available, the attraction of San Diego will continue to develop.
San Diego Realtors Assist in Buying a Home
By: John Harris | 19/09/2007 | Home & FamilyBuying a home is the biggest and most important investment you’ll ever make. Enlisting the aid of a reputable San Diego realtor can help with all of the details and decisions that come with the home buying process.
Choosing a Suitable Real Estate Agent in San Diego
By: John Harris | 19/09/2007 | Home & FamilyDeemed “America’s Finest City,” San Diego provides the best that life has to offer. Sunny skies, perfect weather, breathtaking beaches, and coastline; the San Diego area is one of the county’s most popular vacation destinations. With so many living advantages, many are also flocking to the area searching for available real estate.
San Diego County Realtors Assist in Home Purchase
By: John Harris | 19/09/2007 | Home & FamilyOne of the country’s favorite vacation destinations, San Diego is quickly becoming an ideal place to invest in real estate. With an ideal climate and sensational real estate options, San Diego County is the perfect place to purchase or build a new home.