Mortgage & Refinancing Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Home Mortgage Loan Information - Which Type of Home Loan is Best For You?


If you are considering buying a home, then you may be more than a little confused by all of the terms you hear about home loans. After all, lenders throw around words like fixed rate, balloon mortgages and adjustable rate mortgages without a thought. But if you aren't at least familiar with the basics-those terms can be pretty confusing!

Here's a basic guide to the three most common types of home loans. Study it, and determine which one is right for you.

Fixed Rate Home Loan

If you are thinking about buying a home and staying in it until you pay it off, then you will probably want a fixed rate home loan. With this type of loan, you will be assigned a fixed interest rate, and then that rate will not change for the life of the loan. If interest rates skyrocket, yours will remain the same. On the other hand, if they plummet, you will likely be paying a higher rate. (You can always refinance in order to get a lower rate.)

Adjustable Rate Mortgage (ARM)

The interest rate with this type of loan goes up and down with the market. In other words, if the interest rate is low, the rate on your home mortgage will be low, but if it's high, your loan interest rate will reflect it. And because the interest rate on a home mortgage loan affects the payments, you will never know from reporting period to reporting period what your monthly mortgage payments will be. This type of loan obviously isn't for everyone.

So, who might use an ARM? For starters, if you are purchasing a house for investment purposes and plan to sell it quickly, you might take advantage of low interest rates by getting this type of loan-particularly if it looks as if they may go lower. Another reason to use an ARM as a home loan is if you are buying a home in a time when interest rates are on the decline. You can take out an ARM, and then change it to a fixed loan once the interest rates bottom out.

Balloon Mortgage

With this type of loan, you will make monthly payments for a fixed amount of time, with a fixed interest rate. The difference is that at the end of the payment schedule, you will owe the unpaid balance in one lump sum. If you use a balloon mortgage, you will find that the interest rates are much lower than either a fixed rate mortgage or an ARM.

The obvious negative to this type of loan is that huge payment due at the end, but if you are planning to hold the house for a short period of time, then this might be the loan for you.

By understanding the various types of home loans that are available to you, you will be better prepared to make a decision that is just right for you and your family.

To view our recommended sources for home mortgage loans, visit: Recommended Home Mortgage Lenders Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


The Express Tribune

Mortgage refinance firm to loan home buyers Rs9 billion
The Express Tribune
KARACHI: Pakistan Mortgage Refinance Company, set up by the State Bank of Pakistan (SBP) with the support of the World Bank, would provide housing finance worth Rs9 billion for middle and low-income groups in the first year of its commercial operation ...
Housing to get boost with cheaper financingDAWN.com
News BriefThe Nation

all 6 news articles »


Sustainable Business Forum

4 Ways a Mortgage Refinance Will Help You
Sustainable Business Forum
Could it be that opting for a mortgage refinance would allow you to lock in a more competitive rate and better terms? There is an excellent chance that you could obtain a lower interest rate. In fact, the rate you can get now may allow you to shorten ...



Union County top-5 in mortgage refinance savings
The Enquirer-Journal
Union County recently ranked fifth out of 100 counties in North Carolina in a study about mortgage refinancing by SmartAsset, an online financial technology company. SmartAsset's study -- which gathered information for 12 months starting in the summer ...



Business Recorder (press release) (blog)

Deputy Governor SBP inaugurated office of Pakistan Mortgage Refinance Company
Business Recorder (press release) (blog)
KARACHI: Pakistan Mortgage Refinance Company's office was formally inaugurated here by Jameel Ahmad, Deputy Governor, State Bank of Pakistan (SBP), says an announcement here on Monday. Speaking on the occasion, Jameel Ahmad said that PMRC ...



Best Bank In 'Towne' For A Flat Yield Curve
Seeking Alpha
Towne Bank has great non-interest earning potential to weather this period of low yields. Non-interest income is up 25% YTD, despite a worsening mortgage refinance market. In addition, Towne Bank's core banking operation is top of its class, which ...



Bankrate.com

4 ways to get the best mortgage refinance rate
Bankrate.com
If you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your existing home loan for a new one. Here are some tips for getting the very best refinance rate.

and more »


11 Ways to Get the Lowest Mortgage Refinance Rate - NerdWallet
NerdWallet (blog)
In the hunt for the lowest mortgage refinance rate, there are some things you can control and some you can't. Here are 11 things you can do.

and more »


WBIR-TV

wbir.com | Home equity loans set to soar along with home prices
WBIR-TV
Ever since the epic housing crash of the last decade, homeowners have been incredibly conservative with their housing debt. Home prices rose, at first slowly ...

and more »


DFI-declared PMRC to operate in housing sector shortly | | Business ...
Business Recorder (press release) (blog)
The federal cabinet has declared Pakistan Mortgage Refinance Company (PMRC) Limited as Development Financial Institution (DFI), which is ready to launch ...

and more »


P.M. News

Lagos, NMRC, Developer sign MOU to deliver 20000 housing units
P.M. News
The Lagos State Government, the Nigeria Mortgage Refinance Company (NMRC) and developers on Monday signed a Memorandum of Understanding, MOU towards the construction and delivery of 20,000 housing units in Lagos. The MOU, signed by the ...


Google News

home | site map
© 2006 TIGER MEDIA