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.
 Please check back frequently as new topics are added and current topics are updated daily.

Know Your Mortgage Options

While trying to find the lowest rates, many homeowners fail to examine the type of mortgage, and which type of mortgage is best suited to their needs. Whether you are buying a new home or refinancing, it is important to understand the different mortgage types, and evaluate which one best meets your needs.

The most important decision is that between fixes rate mortgages and adjustable rate mortgages (or ARMs).

Fixed rate mortgages have interest rates set at the time of purchase, and these interest rates remain fixed. By getting a fixed rate mortgage, the borrower can "lock in" the rate. This is a low risk strategy for those who are comfortable with the existing interest rate. However, if interest rates fall, fixed rate mortgages will still have to pay the higher interest rates.

Adjustable rate mortgages are generally cheaper than fixed rate mortgages in order to entice borrowers. But these lower rates are not guaranteed, and the rates will go up corresponding to an increase in interest rates. But the rates can also go down, and these mortgages are becoming far more popular with the consistently low interest rates of recent years.

The decision between fixes rate mortgages vs. adjustable rate mortgages will come down to financial expectations, and the ability to tolerate risk. Those who are confident their earning power will increase might be more comfortable with an adjustable rate mortgage that has lower payments now, but risks higher payments in the future. On the other hand, those who are satisfied with existing interest rates, and feel that the rates are likely to rise will want to lock in these rates for the long term.

In either case, mortgages can be refinanced, but refinancing a loan costs money, and the best savings will be available to those who don't need to refinance often.

Another type of loan that has become popular in recent years is the interest only loan. In fact, an interest only loan is not a type of mortgage; it is just an option that can be applied to a mortgage. With an interest only loan, the borrower is free to pay only the interest, but not make any payments towards the principal. This lowers payments, although the loan is not actually getting paid off. This type of loan may be attractive to those who believe leverage in their home's value is more important than actual ownership since their house value will increase. It is a speculative position.

Balloon loans are similar in many ways to the interest only option on mortgages. The balloon loan allows the borrower to pay off the principal at a later date, and pay interest only up front at set rates. In the ultimate derivation of a balloon, or interest only loan, a homeowner owes the entire sum of the original loan amount after 30 years of paying interest.

Two step loans are another option, where a fixed rate is settled for a number of years, and then a new fixed rate is set up after 5 or 7 years with a one year adjustable for the remainder of the loan.

Choosing the right type of mortgage for your financial situation is an important decision that could save many thousands of dollars over the long run. There is no one correct answer for all people in all financial situations, but it is important to understand the types of loans, and how the match with your personal financial expectations.

Rex Ryan maintains the website:

http://www.cheapmortgaeglenders.info

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: Stop Foreclosure - 7 Tips to Save Your Home Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry and its army of attorneys against them, the average homeowner might feel like David facing Goliath. But David defeated Goliath !David had a sling and some pebbles. Life of an Escrow Escrow is one of the last stages in the purchase or sale of a real property. When someone says that they are in escrow, it means that they have either accepted an offer on the sale of their property, or their offer to purchase has been accepted. Home Loans - Would You Buy a Home Without an Inspection? The housing market has exploded, with home prices rising beyond all reason in some markets. Home prices have doubled or tripled during the last five years, and in some cities, the asking prices for homes are considered only to be suggested opening bids. Guide to Mortgage Terms Listed below is a guide to mortgage terms. It is a useful list of definitions of mortgage terms that may or may not be familiar to you. Home Equity Loan vs. 401(K) Loan -- Which Should You Choose Home Equity Loan vs. 401(K) Loan. You've finally decided to add that patio you've always wanted to your home. Understanding Mortgage Basics As common as mortgages are, there are a surprisingly large number of us who are under false impressions about the way they function, and what they actually are. For one thing, though we do commonly call mortgages "home loans," this is not at all what they actually are. Selecting the Right Mortgage for You A mortgage is a loan you take out to buy a home. This loan covers the "principal" (purchase price of the house minus your down payment) plus the "interest," which is the fee a lender charges you to borrow the money. Securing the Best International Mortgage for Your Home in Spain Are you one of a growing number of people planning on buying a holiday home in Spain? Or have you decided to expatriate, buy a Spanish home and live in it permanently? If so, you may be about to begin your hunt for an international mortgage to purchase real estate abroad? The task of finding the best international mortgage can seem like quite a daunting one at first glance with many domestic, overseas and international providers vying for your business. But don't panic! Tackle the task head on, ensure you secure yourself the best possible international mortgage or property finance deal today and you will save yourself tens of thousands in interest payments over the lifetime of your mortgage. Refinance Mortgage Rate and Mortgage Rates Refinance mortgage rate is the best rate available to qualified homeowners for refinancing their current home mortgage. Refinance mortgage rates vary from product to product and customer to customer. The Top 5 Things You Must Know Before Applying for a Mortgage You've been thinking about buying your own home for quite a long time, and now you're ready to take the plunge. You've been saving money for a down payment, and you know the next step is preparing to apply for a mortgage. Should You Refinance? There are several reasons that might make someone consider refinancing their existing mortgage. One would be to get a lower interest rate than what they currently have, thereby reducing monthly payments and lowering the overall cost of the mortgage. A Home Equity Loan - What You Should Know? Asking yourself, "Is a home equity loan right for me?" is the first and most important step to take. Home equity loans have become so popular today because of increasing home values. Secured Loans - Making the Most of Your Home as Collateral My visit to the lender was interrupted with my wife demanding a reason for my preference for secured loans. Though I hushed up the matter then, it kept on ringing in my mind hours later. Tips On New York Mortgage Refinance Loan Many homeowners want to know if it worth taking a New York mortgage refinance. How do you know if New York mortgage refinancing makes sense in your case? Read on to understand when you should refinance and how to go about doing it. Where To Find The Best Rates For Your Mortgage? As with all of my articles this will be based on a scenario in my home town. (Which may be similar to yours). How a Commercial Mortgage Can Help Your Business A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property. Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs. Refinance After Bankruptcy Refinancing your mortgage after bankruptcy is actually the same as replacing it with an entirely new mortgage. The most common reason for refinancing your mortgage after bankruptcy is to get a lower interest rate and save money over the length of your mortgage. Thought Fixed Rate Will Give You a Respite from the Perils of Variable Rates! Think Again Slight increases in the interest rates raise your hackles. Tension grips your mind as to how you are going to make the extra payment. Flexible Mortgage Guide Here is a useful flexible mortgage guide. Flexible mortgages are loans which allow you to increase or decrease the size of your repayments within certain limits. Hard Money Loans - Reasons Why You Might Want To Try Applying With A Subprime Mortgage Lender Before you apply for a hard money loan, try applying with a subprime mortgage lender first for lower rates and fees. Hard money lenders charge excessive fees to high-risk borrowers, but will only lend 50% to 75% of the value of the property.

HOME | SITE MAP © 2012 - 2023 All Rights Reserved Increase pagerank with HitsSurfer