San Diego Mortgage Brokers

Written by Stephanie Dula
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Mortgage brokers abound in the San Diego area who offer a variety of creative options for those looking to make their homes in this desirable market. In many highly attractive markets, no-down-payment loans have become quite popular. With the ever-growing credit card debt of the average American, first time home buyers often don't have the money needed for the standard 20 percent down payment that will come without the cost of PMI (private mortgage insurance).

Even with no down payment, many buyers can still purchase a home and avoid the high cost of PMI. This can be accomplished through 100 percent financing by a lender, with only the closing costs to be paid by the buyer. It's actually a combination of two loans, the most common being the 80-20 loan.

An 80-20 loan is one loan of 80 percent of the value of the home, and another for 20 percent of the value of the home to serve as the down payment. The main danger for the buyer in an 80-20 situation is if the home loses value, he or she will end up owing a balance that exceeds the value of the home. Since these loans so often proliferate in overheated markets, lenders can greatly benefit from those whose homes lose value.

Mortgage Brokers and No-Money-Down Loans

No-money-down loans are very popular in today's market, especially for those with little savings. As is the case with any loan product, lenders can prove unscrupulous and programs should be carefully researched before making a final commitment. Mortgage providers in San Diego and their programs, including no-money-down options, can be found in comprehensive detail on the Internet.

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