The 100 Mortgage – Becoming More Common

If you are looking to buy a home, you have probably considered the 100 mortgage. No money down mortgages are becoming widely accepted and used these days and rightfully so. When purchasing a home it is inevitable that you are going to have to use cash for expenses. For instance, you may need to redo the master bedroom, update the cabinets in the kitchen, or even install new flooring. With a fully financed mortgage you can keep your cash in your pocket to use these expenses.

What Is The 100 Mortgage?

A 100 percent mortgage means that the total asking price of your home is paid for in full by your mortgage requiring no money down. Using a fully financed mortgage also allows you to deduct 100 mortgagemore on your taxes because you will be able to deduct more interest costs. The downside to the 100 mortgage is that you will typically have to pay a slightly higher interest rate due to the loan being 100% financed (but again this will also allow you to deduct more interest costs on your tax return). However, if you have a high credit score, you may not have a higher interest rate.

Talk About The 100 Mortgage With Your Mortgage Broker

If you are interested in a 100 percent mortgage it is best that you talk about this type of financing with a mortgage broker up front, before discussing conventional loan options. Years ago a fully financed mortgage was not even an option, but now there are many ways to accommodate a 100% fully financed mortgage. It is even possible to obtain a mortgage for more than 100% if you expect to have additional upfront renovation costs with your new home.

The 100 Mortgage Comes With Risks

It is a new day and age, and if you are looking for creative ways to finance your home purchase then you should at least consider the fully financed mortgage, also known as the 100 mortgage. The benefits often outweigh the disadvantages, especially if you are wanting to purchase a new home without the available cash on hand for a down payment. But make no mistake, a 100 mortgage does also carry certain risks.

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