What Is "Prime"? The Prime Lending Rate - sometimes just called "Prime" - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.The video shows an example. The Federal Reserve loans to Bank A at 1% Bank A loans to Bank B at 4% Both banks - A & B - will recalculate … [Read more...]
Who Is Exempt From The VA Funding Fee?
Who is NOT required to pay the VA funding fee This video could save some veterans thousands.VA Loan applicants pay a funding fee - as of 2014, 2.15% of the total loan amount - which can be thousands of dollars. Some veterans and spouses are eligible for exemption. Broadly speaking, veterans who received disability benefits - current or former and who are NOT currently in debt to the government may be exempt from the VA funding fee. Some spouses may qualify as well. The key thing to … [Read more...]
Video: What Steps Need To Be Taken To Secure A Loan
What Steps Need To Be Taken To Secure A Loan You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application. To do so, you'll need the following information. Pay stubs for the past 2-3 months. W-2 forms for the past 2 years. Information on long-term debts. Recent bank statements tax returns for the past 2 years. Proof of any other income. Address and description of the property you wish to buy. A sales contract on … [Read more...]
Video: Are There Special Mortgages For First-Time Homebuyers?
Yes. Like the video shows, lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or who have experienced income irregularities. … [Read more...]