Mortgage and Refinancing Information Channel:
We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
Buying a home remains the great American dream. Home ownership rates have been exploding in recent years, spurred on by the historically low interest rates in the home mortgage market. Home prices have been rising at far faster than inflation, especially in major urban areas such as San Francisco, San Diego and Chicago. This means that not only can that home you've always wanted put a roof over your head, but it can provide you with a great investment as well. For people new to the mortgage market, buying their first home starts with finding the best home loans.
All potential homeowners should take some time to research home loans before calling their local realtor. There are a dazzling array of choices available when it comes to home loans, and finding the right mortgage for your needs can be difficult. Approach your upcoming home purchase with the same seriousness you apply to other major purchases. Your home will most likely be the biggest single investment you ever make. Take the time at the beginning to educate yourself about home loans. It will be time well spent.
Home loans are available from a wide variety of sources. These sources include banks, savings and loan associations, credit unions and mortgage brokers. Shop around at all of these sources to find the home loans with the lowest interest rate and lowest costs.
You will also have to decide between fixed rate home loans and variable rate home loans. Variable rate home loans are often advertised with extremely low "teaser rates". These rates are used by lenders to get your attention and lure you in.
Before signing up for a variable rate mortgage, make sure you find out what the interest rate cap is. Variable rate home loans are usually based on an underlying interest rate, like the prime rate. The interest rate you pay will typically be the prime rate plus or minus a certain percentage. The variable rate mortgage will have a cap above which the interest rate cannot rise. Find out what that cap is, then use a mortgage payment calculator to see what your monthly mortgage payment will be at that rate. If you cannot afford the monthly payments at the maximum interest rate, you may not want to take the mortgage loan. While it is unlikely that interest rates will rise sufficiently to make the maximum interest rate kick in, it is always a possibility.
Variable rate home loans can be a good choice if you believe interest rates are likely to fall. In an environment where interest rates are steady or rising, they may not be so good a choice. You may also want to consider a variable rate mortgage if you do not plan to stay in your home more than five years. For instance, if your job transfers you every couple of years, you could probably get away with a variable rate mortgage and take advantage of the lower interest rate. When you move and sell your home, you will probably realize a gain due to rising home prices.
On the other hand, fixed rate home loans have a set interest rate for a set period of time, generally either 15 or 30 years. The interest rate does not change, therefore you will always know what your monthly mortgage payment will be. You are protected from rising interest rates with a fixed rate mortgage. If rates fall significantly, you can always refinance your mortgage loan to take advantage of the lower rates.
If you can afford the payments, 15-year home loans can substantially lower the amount of money you will ultimately pay for your home. When you run the numbers on a 15-year versus a 30-year home mortgage loan, you may be surprised at how affordable the 15-year home loan can be. Your mortgage payment will not double if you go with a 15-year mortgage versus a 30-year. This has to do with the affect of compound interest. You are paying far less interest in the long run on a 15-year mortgage.
Whatever type of home loan you decide on, the most important thing is to take that step which transforms you from a mere renter to a home owner and builder of equity. There are a great many home loans out there, but once you find the right one, you will find the rewards of home ownership well worth the time and effort put forth.
Barry Stein is the owner of aWebBiz.com where he offers cutting-edge tips on all aspects of business. To find more advice, tools and resources to help you succeed in your business, visit: http://www.aWebBiz.com
Barry's Internet Marketing Blog: http://awebbiz.com/blog
You have permission to publish this article electronically, in print, in your e-book or on your web site, free of charge, as long as the author bylines are included with an active hyperlink to the aWebBiz.com website.
MORE RESOURCES updated Wed. February / 21 / 2024
Mortgage Refinance Rates: Compare Current Rates Business Insider
Capital One Deal for Discover Could Affect What's in Your Wallet U.S News & World Report Money
Why 46% of Recent Borrowers Should Consider a Refinance This Year The Mortgage Reports
Current mortgage refinance rates CNN Underscored
Mortgage Interest Rates Today, February 20, 2024 | Rates Might not Drop in Time for Homebuying Season - Business Insider
Mortgage Interest Rates Today, February 20, 2024 | Rates Might not Drop in Time for Homebuying Season Business Insider
Mortgage Interest Rates Today, February 19, 2024 | It Could be a While Before Rates go Down - Business Insider
Mortgage Interest Rates Today, February 19, 2024 | It Could be a While Before Rates go Down Business Insider
Mortgage Interest Rates Today, February 18, 2024 | Why are Rates Still so High? Blame the Strong Economy. - Business Insider
Mortgage Interest Rates Today, February 18, 2024 | Why are Rates Still so High? Blame the Strong Economy. Business Insider
Best Mortgage Refinance Lenders of February 2024 Business Insider
Mortgage Interest Rates Today, February 17, 2024 | Will Rates Go Down Soon? Inflation Could Complicate Things - Business Insider
Mortgage Interest Rates Today, February 17, 2024 | Will Rates Go Down Soon? Inflation Could Complicate Things Business Insider
Mortgage Interest Rates Today, February 16, 2024 | Inflation Has Rates up Across the Board - Business Insider
Mortgage Interest Rates Today, February 16, 2024 | Inflation Has Rates up Across the Board Business Insider
Will Rates Go Down in March 2024? | Rates Forecast The Mortgage Reports
Mortgage Interest Rates Today, February 15, 2024 | With Inflation Slow to Come Down, Rates are Back Up - Business Insider
Mortgage Interest Rates Today, February 15, 2024 | With Inflation Slow to Come Down, Rates are Back Up Business Insider
The best mortgage lenders for refinancing in February 2024 CNN Underscored
Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports
Mortgage Interest Rates Today, February 14, 2024 | Stubborn Inflation Pushes Back Expectations of Lower Rates - Business Insider
Mortgage Interest Rates Today, February 14, 2024 | Stubborn Inflation Pushes Back Expectations of Lower Rates Business Insider
How to Refinance Your Mortgage NerdWallet
Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 - Consumer Financial Protection Bureau
Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau
Rates rise | Mortgage rates for February 14, 2024 Bankrate.com
Best Mortgage Refinance Lenders In 2024 Bankrate.com
How much does it cost to refinance a mortgage? CNN Underscored
How to refinance a mortgage with bad credit CNN Underscored
When to Refinance Your Mortgage: 5 Times to Consider Refinancing Business Insider
30-year refinance rates: What to know CNN Underscored
Is Now a Good Time for a Mortgage Refinance? NerdWallet
Should You Pay Off Your Mortgage Early? | Mortgages | U.S. News U.S News & World Report Money
Does Refinancing A Mortgage Hurt Your Credit? Bankrate.com
Discover Home Equity and Mortgage Refinancing Review U.S News & World Report Money
Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider
The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics -
CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor
Should I refinance my mortgage? CNN Underscored
Mortgage Interest Rates Today, February 12, 2024 | Will Rates Drop in Time for the Peak Homebuying Season? - Business Insider
Mortgage Interest Rates Today, February 12, 2024 | Will Rates Drop in Time for the Peak Homebuying Season? Business Insider
Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports
12 Refinance Tips For Homeowners: A Guide Zing! Blog by Quicken Loans
How soon can you refinance a mortgage? CNN Underscored
What Credit Score Do I Need To Refinance? Bankrate.com
How To Refinance An Underwater Mortgage Bankrate.com
HomeReady Mortgage Fannie Mae
Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type - Business Insider
Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type Business Insider
Mortgage refinancing: How to get started Yahoo Finance
Refinancing Your ARM Into A Fixed-Rate Mortgage Bankrate.com
Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider
10-year refinance rates: What to know CNN Underscored
How To Refinance When You Have A Second Mortgage Bankrate.com
Cash-Out Refinance Guide | Requirements and Rates for 2024 The Mortgage Reports