| Preface | p. xi |
| Sorting Out the True Opportunities From the Potential Disasters | p. 1 |
| Too Many Options: A Problem for Consumers | p. 2 |
| The Time-Pressure Trap | p. 3 |
| About This Book | p. 3 |
| How to Get a Mortgage | p. 4 |
| Tip 1 | p. 4 |
| The Seven Steps to Obtaining a Mortgage | p. 5 |
| Making the Decision to "Lock In" | p. 6 |
| Prequalifying | p. 7 |
| First, Know the Possible Sources of Mortgages | p. 8 |
| Checking Out the Sources | p. 14 |
| Learning to Speak and Understand "Mortgagese" | p. 16 |
| The Risk of Not Knowing | p. 16 |
| The Difference between a Mortgage and a Trust Deed | p. 17 |
| The Language of Mortgage Hunting | p. 19 |
| How to Get a Bigger Mortgage | p. 32 |
| A Lender's Opinion | p. 32 |
| The Goal--A Bigger Mortgage | p. 33 |
| Qualifying Ratios | p. 35 |
| Understanding the Ratios | p. 35 |
| Applying the Ratios to Yourself--Gross Monthly Income | p. 37 |
| First, Determine the Loan-to-Value Ratio | p. 38 |
| Next, Determine the Mortgage-Payment-to-Income Ratio | p. 38 |
| How to Find the Maximum Mortgage Payment You Personally Can Afford | p. 39 |
| Calculating the Maximum Mortgage Amount You Can Get Given the Maximum Mortgage Payment (Principal and Interest) You Can Afford | p. 41 |
| Gross Monthly Payment versus Mortgage Payment | p. 41 |
| Calculating Your Maximum Mortgage When You Know Only Your Taxes, Insurance, and Other Costs | p. 44 |
| Long-Term-Debt Ratio--Back End | p. 45 |
| Example of Debt Ratio | p. 45 |
| Getting the Lender to Loan You More Money | p. 48 |
| Front-End Flexibility | p. 49 |
| Back-End Flexibility | p. 49 |
| Jumbos--Bigger Mortgages | p. 50 |
| No-Qualifying | p. 51 |
| Lines of Credit | p. 52 |
| Adjusting Values | p. 53 |
| Credit Problems and Solutions | p. 55 |
| Brushing Up the Way You Look to a Lender | |
| What the Lender Is Looking For | p. 56 |
| Bad Credit: A Lender's-Eye View | p. 57 |
| Some Explanations a Lender Might Accept | p. 57 |
| How to Fix Bad Credit | p. 59 |
| The Bottom Line | p. 61 |
| Adjustable-Rate Mortgages | p. 62 |
| Approach With Caution | |
| Times Have Changed | p. 62 |
| The Advantages of ARMs | p. 65 |
| The "Teaser" | p. 66 |
| Understanding the Problems With Teasers | p. 68 |
| Why Keep the Teasers? | p. 70 |
| Easier to Qualify | p. 72 |
| Assumability of Fixed-Rate Mortgages versus ARMs | p. 72 |
| How an ARM Works | p. 73 |
| Biweekly and 15-Year Mortgages | p. 90 |
| Interest Saved Is Interest Earned | |
| Mortgage Paybacks | p. 90 |
| Changing the Payback | p. 92 |
| The 15-Year Mortgage | p. 92 |
| The Pros and Cons of Higher Payments | p. 92 |
| Why Have 30-Year Mortgages? | p. 93 |
| An Easier Way to Get Bigger Payments | p. 95 |
| Biweekly Mortgages | p. 95 |
| Establishing a Biweekly Mortgage | p. 97 |
| A 30-Year Loan in 15: Sound Finance Plus Flexibility | p. 99 |
| How It's Done | p. 99 |
| The Seller as a Source of Financing | p. 102 |
| Be Prepared to Initiate and Motivate | |
| What Is Seller Financing? | p. 102 |
| How Seller Financing Works | p. 103 |
| Reasons for Asking for Seller Financing | p. 106 |
| Lowering the Interest Rate and Reducing the Monthly Payments | p. 106 |
| Cutting Down on Costs and Red Tape | p. 110 |
| The Wrap | p. 110 |
| What to Include When You Ask for Seller Financing | p. 113 |
| Sellers Who Will Give Firsts | p. 118 |
| Assuming the Seller's Mortgage | p. 119 |
| How to Negotiate With the Seller | p. 122 |
| Making Balloon Payments Work | p. 124 |
| Their Bad Reputation May Be Undeserved | |
| What's Wrong With the Balloon Payment? | p. 124 |
| Any Mortgage Can Have a Balloon | p. 125 |
| Why It's Good for the Borrower | p. 126 |
| The Seller's Incentive | p. 127 |
| Paying Off the Balloon | p. 127 |
| Convertible Mortgages and Piggybacks | p. 128 |
| Is Tailoring a Mortgage to Your Needs Worth the Price? | |
| How a Convertible Mortgage Works | p. 129 |
| Piggybacks | p. 131 |
| Adjustable Convertibles | p. 132 |
| When Does Conversion Pay Off? | p. 134 |
| Is a Convertible for You? | p. 135 |
| "No-Doc" and "Low-Doc" Mortgages | p. 137 |
| Cutting the Time It Takes to Qualify--But at What Cost? | |
| Self-Employed: Heavily Impacted | p. 138 |
| Enter the No-Document Loan | p. 139 |
| Low-Documentation Mortgages: All Things Being Equal, the Only Way to Fly | p. 140 |
| Advantage of Lo-Docs | p. 140 |
| Finding Lo-Doc Lenders | p. 141 |
| Buy-Downs | p. 143 |
| Getting Monthly Payments Down Can Help You Qualify | |
| Who Pays for Buy-Downs? | p. 144 |
| Requirements for a Buy-Down | p. 145 |
| Types of Buy-Downs | p. 146 |
| Who Offers Buy-Downs? | p. 146 |
| Lines of Credit and Swing Loans | p. 147 |
| Exposure Money for Your Long-Term Needs | |
| What Is a Line of Credit? | p. 147 |
| Home-Equity Credit Lines | p. 148 |
| Using a Credit Line as a Swing Loan | p. 151 |
| Problems With Swing Loans | p. 151 |
| Where Do You Get a Home-Equity Loan? | p. 153 |
| The Bottom Line on Home-Equity Lines of Credit | p. 154 |
| Refinancing | p. 155 |
| How to Get a Second Chance at a Good Deal | |
| The Refinancing Decision | p. 156 |
| The Costs of Refinancing | p. 156 |
| How to Lower Your Refinancing Costs | p. 158 |
| How Do You Get a Lender to Pick Up the Costs? | p. 160 |
| Deciding What Kind of Refinancing to Do | p. 161 |
| How to Know How Much You'll Save on a Refinance | p. 161 |
| Calculating the Time Factor | p. 163 |
| When to Refinance | p. 165 |
| Making the Refinance Decision | p. 166 |
| Refinancing to Avoid Financial Problems | p. 168 |
| Refinancing to Avoid Foreclosure | p. 169 |
| Graduated-Payment Mortgages | p. 170 |
| Trading Higher Future Payments for Lower Payments Now | |
| How the GPM Works | p. 171 |
| Combining the GPM With an Adjustable-Rate Mortgage | p. 175 |
| Advantages | p. 175 |
| Disadvantages | p. 175 |
| Who Benefits Most From a GPM? | p. 176 |
| Advantages of the GPM | p. 177 |
| Government Mortgages | p. 178 |
| Attractive Deals If You Can Survive the Red Tape | |
| FHA Mortgages | p. 178 |
| Advantages of FHA Loans | p. 179 |
| Disadvantages of the FHA Loan | p. 180 |
| Qualifying for FHA Mortgages | p. 180 |
| Mortgage Premium | p. 181 |
| Down Payment | p. 181 |
| VA Mortgages | p. 182 |
| How the VA Program Works | p. 182 |
| Down Payment | p. 182 |
| Entitlement | p. 183 |
| Qualifying for a VA Loan | p. 183 |
| Eligibility Requirements | p. 184 |
| VA Appraisals | p. 184 |
| Automatics | p. 184 |
| Owner-Occupancy Requirement | p. 185 |
| Impound Accounts | p. 185 |
| SAM, PLAM, and Options | p. 186 |
| Mortgages for Special Circumstances | |
| SAM (Shared Appreciation Mortgage) | p. 186 |
| PLAM (Price-Level-Adjusted Mortgage) | p. 189 |
| Option Mortgage | p. 192 |
| Reverse Annuity Mortgages | p. 194 |
| Access to Equity for the Retired Set | |
| The FHA HECM | p. 195 |
| From Another Age | p. 197 |
| Mortgage Insurance Rip-Offs | p. 198 |
| Read the Fine Print and Know the Following | |
| Conventional Loans with Private Mortgage Insurance (PMI) | p. 199 |
| Life Insurance | p. 201 |
| FHA Mortgage Insurance | p. 202 |
| Tax Considerations | p. 205 |
| How You Play the Tax Angle Can Make or Break Your Mortgage | |
| Deductibility of Points | p. 206 |
| Interest Deductions | p. 208 |
| Taxes When You Sell or Refinance Your Property | p. 209 |
| Mortgage Interest versus Personal Interest | p. 212 |
| Other Tax Considerations | p. 212 |
| Paying Off Your Mortgage Early | p. 214 |
| The Benefits Depend on Your Circumstances | |
| Equity Return | p. 215 |
| Paying Off the Mortgage | p. 215 |
| Tax Considerations | p. 217 |
| The Value of Cash | p. 218 |
| Consider Refinancing | p. 219 |
| Be Careful | p. 219 |
| Settlement Costs | p. 220 |
| Making Sure You Get a Fair Shake | |
| RESPA | p. 220 |
| Good-Faith Estimate | p. 221 |
| Settlement Statement | p. 222 |
| Typical Mortgage Settlement Costs | p. 223 |
| Challenging Lender Fees | p. 227 |
| Complaints | p. 228 |
| Amortization Table | p. 229 |
| Mortgage Finder | p. 231 |
| Index | p. 267 |
| Table of Contents provided by Syndetics. All Rights Reserved. |
