When is it a good idea to chose a no-down payment mortgage?
A. It is rarely a good idea to choose a no-down payment mortgage. Again, it might be right for some personal situations, but this is a risky bet for most people. This type of lending has seen a significant constriction following the issues with the sub-prime market. Q. What is considered a low interest rate today and how does that compare to five/ ten/ twenty years ago? A. Right now interest rates remain quite low – less than half of the rates of the 1970s and 1980s, which approached or exceeded 15%. People need to remember that the American Real Estate Market has been tremendously resilient over time. Q. Are there special mortgages for first-time home buyers? A. A number of state programs exist to help first-time homebuyers with mortgages. One option is an FHA loan – a federal assistant mortgage loan which is insured by the FHA. FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for private mortgage insurance or PMI, which reduces the
