| Obtaining a mortgage for 100 percent of your | | | | costs. |
| home's value without Private Mortgage Insurance | | | | This type of mortgage is ideal for the homebuyer |
| used to be very difficult. Times have changed and | | | | with minimal cash. The disadvantage of this type |
| it is now possible to finance 100 percent of your | | | | of loan is the interest you will pay on the closing |
| home's purchase price along with an additional 3 | | | | costs. Because mortgage loans are front loaded |
| percent for closing costs. Here is what you need | | | | with interest, financing your closing costs will cost |
| to know about 103% mortgage loans. | | | | you a lot more in the long run than if you had |
| What are 103% Mortgage Loans? | | | | paid the cash at closing. If closing costs are |
| Whenever taking out a mortgage the borrower is | | | | preventing you from homeownership this may be |
| required to pay certain expenses for the loan. | | | | an acceptable expense; you can always refinance |
| With a 100% mortgage loan, down payments are | | | | down the road when your financial situation |
| not required by the lender; however there are | | | | improves. |
| closing costs and lender fees. These fees are | | | | You can learn more about your mortgage options |
| difficult for many homebuyers to afford. As a | | | | including common mistakes to avoid, by |
| result many mortgage lenders now offer 103% | | | | registering for a free mortgage guidebook: "Five |
| mortgage loans to cover the expense of closing | | | | Things You Need to Know About Your Mortgage. |