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How does a 90 percent loan to value with a six percent seller's concession work?
Wiki User
∙ 16y ago
You would have to come up with 10% of the cost of the house. The seller is willing to give 6% back to you for closing cost.
Wiki User
∙ 16y ago
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Do you need an appraisal for a fifty-percent loan to value ratio refinance?
No, you do not need to have a fifty-percent loan to value ratio to refinance. There are many many loan programs that will allow you other ratios and consider an overall financial picture of the situation so that you can refinance.
Is there any way to add fee to the total loan amount?
I am not quite sure what the question exactly pertains to, as far as "fees". If by fees you mean closing costs then yes you can. In a purchase you can include your closing costs into the loan by getting what is known as a "sellers concession" Basically the closing costs are added to the purchase price and that is now the new purchase price. To do that first off you have to get the seller to agree to let you do that. Secondly the home must appraise for that amount. Say for eample you are buying a home for 100,000 your closing costs are 5,000. The new purchase price with a full sellers concession is 105,000 on the contract, on your mortgage and on the appraisal. The house must appraise for atleast 105,000, if it appraises for 100,000 then you can't do it. It has to be written in the contract and the seller must agree because they are conceding they could have sold the home for 105,000 but they are selling it for 100,000 and letting the buyer include their closing costs. Sellers concessions can cover all or half of the closing costs. In a refinance you can roll your closing costs into the refinance as long as your loan to value doesn't go over 100%, though some banks will go as high as 125% on your loan to value though I don't recommend it in most cases. Loan to value is your current debt on the home divided by its current market value. A home worth 100,000 with a 50,000 mortgage has a LTV of 50%.
What percent of retirement assets can be used in a Fannie Mae loan?
Retirement assets may be counted at only 60 percent of current value.
What is an example of an inexpensive loan and a medium price loan and a expensive loan?
An inexpensive loan is one with a 0.12 percent interest rate. A medium price loan would be about a 6.5 percent interest rate. Lastly, an expensive loan would be one with an interest rate of 15 percent or more.
Truth in lending laws require?
sellers provide full and accurate information about loan terms
What is the index value of my home loan?
What is the index value of my home loan? How is it calculated? Also, the marging of the loan, where is calculated or comes from?
What is the loan value of a 2011 ctsv coupe?
loan value of Cadillac cts-v coupe
How much is a 6 percent interest on a loan is that a good rate?
$60 of your loan
What is the definition of 125 Loan?
A loan, usually a mortgage, with an initial loan amount equal to 125% of the initial property value. In other words, a 125% loan has a loan-to-value ratio (LTV ratio) of 125%.
What is the maximum loan to value LTV for a VA loan?
90%
How do you calculate mortgage insurance premiums?
1. alculate the Loan to Value ratio (LTV). LTV = loan amount /total mortgage value, where loan amount = total value of mortgage --down payment on the property.If the mortgage value is $100,000 and the client makes a 10-percent down payment ($10,000), the loan value is $90,000. LTV ratio is equal to 90000/100000 or 0.9 or 90 percent.2. Determine the mortgage insurance rate. Rates are different for private mortgage insurance (PMI) and an FHA loan. In order to determine the correct insurance rate, contact the insurance provider. Generally, PMI insurance rates fall within the range of 0.5 to 1 percent. FHA loans require a premium of 1.5 percent of the loan value at closing; monthly premiums fall in the range of 0.5 percent of the loan amount. Contact the insurance provider to determine the correct insurance rate.3. Calculate the premium with the following formula: Mortgage insurance premium (annual) = LTV amount x mortgage insurance rate. Mortgage Insurance premium (monthly) = mortgage insurance annual premium / 12. For example, if the LTV is $90,000 and the mortgage rate is 1 percent, the annual mortgage insurance premium = $90000 x 0.01 = $900, and the monthly mortgage insurance premium = $900 / 12 = $754. Research the benefits, liabilities and costs of owning mortgage insurance. Mortgage insurance may be tax deductible. However, the cost of the insurance can be substantial on large loans. Generally, the insurance can be canceled when 20 percent of the loan has been repaid, but the terms vary according to the provider.
What is a 100 percent home loan?
100% financing is a type of home loan in which the homeowner applies no money down on the purchase of the home. They are a down payment alternative which helps individuals to purchase a home and finance 100% of the home's value.
