|
Home Purchase Loan Information
A technical term having meaning and legal
connotations within the context of the Home
Mortgage Disclosure Act, a home purchase
loan is essentially a mortgage as it is a
loan made for the purchase of and secured by
a dwelling. Home purchase loans include
loans made for the purchase of any dwelling
– not just a person’s main home, second
homes, recreation vehicles, house boats,
vacation homes, rental properties, and
multi-family tenant properties should also
be included. Essentially a loan against and
for the purchase of any property in which a
person may reasonably live. Such a loan is
commonly called a mortgage; however, to
differentiate between a Home Purchase Loan
and a mortgage, generally to have legal
significance a mortgage must be a written
document and be filed with the local Clerk
of Court a home purchase loan, while it may
be filed with the clerk need not be, which
is a subtle difference between the two
words.
Do not
make assumptions. If you are unsure about
anything...
ASK YOUR MORTGAGE COMPANY QUESTIONS!
1. Inquire
about all fees and costs associated with
this loan, including the home purchase loan interest rate and APR (annual percentage
rate).
As with any
residential home loan....
2. Do not
assume that the interest of this
loan will be tax deductible. Consult a
qualified tax advisor for potential tax
benefits.
3. Be sure to ask if there is a
pre-payment penalty (prohibited by law in
some states) for paying off the loan
too early or making substantially large
payments against the principal.
|