|Mortgage & Refinancing Information|
Some of the Available Loan Types
There are many mortgage products available on the market today. We can help you find out which one is right for you. Here are the most common options.
Fixed Rate Mortgages (FRM's)
* Interest rates stay constant for the life of the loan.
* Offered in 10, 15, 20, or 30 year terms.
* Payments are made up of principal and interest (P & I) portions and escrow portions. The P & I portion would not change for the life of the loan. Escrow amounts would pay for things like home owners insurance and property taxes. Escrow amounts may vary from time according to the cost of these items.
* If your loan requires that you carry Personal Mortgage Insurance (PMI), these payments would be added to your monthly payment amount until this mortgage would no longer be necessary. This is normally when you acquire 20% equity in the home.
* Fixed rate mortgages usually have low down payment requirements.
Adjustable Rate Mortgages (ARM's)
* Also called variable-rate loans.
* Starts out with a lower interest rate, and changes according to market fluctuations. How often it changes depends on the terms of the loan. The most common adjustment term is once every year.
* ARM's have limits, or caps, on the number of percentage points it can go up each year. It also has caps on how much it can go up for the life of the loan. This happens according to the terms of the loan you choose. For example- your mortgage starts at a rate of 4%. If you have a yearly cap of 2 points, and a life long cap of 6 points, this is what can happen to the percentage rate of your loan. At the end of one year your mortgage company can increase your rate by two points, to 6%. At the end of the second year, your mortgage company can increase your rate by 2 points, to 8%. (A total of 4 percentage points higher than the original term of the loan.) At the end of the third year, your mortgage company can increase your rate by 2 points, to 10%. A total of 6 percentage points higher than the original terms of the loan.) At this point you have had an increase of 6 percentage points and can no longer have your interest rate raised for the life of your loan. Of course these changes are tied to the index that your ARM is based on.
* A convertible ARM allows you to have the lower interest rates for the beginning of the loan, but the option to convert to a fixed rate loan when you choose. This usually requires a conversion fee as set up by your loan institution.
* These types of mortgages allow you to carry a lower interest rate than most other types of mortgages.
* Terms of these types of mortgages are usually for 5 to 7 years. At the end of this time period a payoff payment, or balloon payment, is required to pay off the remainder of the loan.
* If you plan on staying in the house at the end of your loan period, you must refinance your loan amount into a conventional mortgage plan to make your balloon payment. (A FRM or an ARM.)
Interest Only Mortgages
* An option that can be attached to any type of loan, not an actual loan type.
* You pay only the interest on your borrowed amount for the beginning terms of the loan. This is usually between 1 and 5 years in length.
* At the end of your interest- only period you begin making payments based on the interest rate of the type of mortgage you chose- a FRM or an ARM. You have conventional principal and interest payments, plus any escrow amounts due.
* You do not save any money on your principal when choosing this type of loan. It only delays you paying your principal for a preset length of time. Your P & I payments will actually be higher after your interest only period, because your payments will be amortized according to the remaining time left on the loan. Example- A 5 year interest only option on a 15 year mortgage for $100,000.00. You will pay only the interest for the first five years, then you will pay P & I for only 10 years. Therefore, you will be paying off the $100,000.00 over 10 years instead of 15 years, making your payments higher.
* This option works best for people in certain monetary situations. The most common ones are if you do not make a set amount of money every month, such as being paid on commission or bonuses. Another one would be if you are expecting a lump sum payment of money in the forseeable future. A more risky reason would be if you are sure you can invest the money saved by doing this for a secure profit at the end of your interest only period.
* Most loan institutions follow the Fannie Mae or Freddie Mac federal guidelines for loans. They have an established maximum loan amount of $359,650.00. Any loan above this amount would be considered a Jumbo loan.
* Jumbo loans usually carry a higher interest rate.
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Line of credit? Mortgage refinance? Experts rank the best and worst options for debt consolidation - Globalnews.ca
New Data Outlines Consumer Attitude Shift for the Purpose of Mortgage Refinance Loan from Rate Reduction to ... - Digital Journal
New York Court Holds Radioactive Materials Exclusion Precludes E&O Coverage for Negligent Phase I Report - JD Supra (press release)
How should I apply for a mortgage refinance: in person, by phone or online? - The Mortgage Reports (blog)
Equifax: First Mortgage Originations Continue Steady Rise, Reaching over $680 Billion in Total Balance - Virginian-Pilot
Guide to Remortgages
Here is a useful guide to remortgages. What is a remortgage? A remortgage is when the terms of the original mortgage are renegotiated, and usually means that the borrower increases the amount that they are borrowing, which is often possible due to a rise in the value of the property.
Home Loans and Mortgages - The Myth of Tax Deductible Interest
Home ownership has risen sharply in recent years, and the percentage of Americans who own their own homes is approaching a record seventy percent. That's a good thing; we'd all rather live in our own home than consider the alternatives.
Buying a House? How Much Home Can You Afford?
Maybe you've heard the expert advice that your debt to income ratio shouldn't be more than 36 percent of your total income. But do you truly know what that means, and how lenders will look at your financial history in order to decide whether or not to extend you a mortgage? If you need help figuring out your debt to income ratio, simply follow the guidelines below and soon you'll know whether or not you're in a position to apply for a mortgage loan.
Getting The Best Rates On Mortgages And Loans
With an impending up-grade to the family due in a few months it soon became clear that our two-bedroom home would need an addition. We loved our house too much to consider moving.
Buying a Home With Bad Credit - Why a Recent Bankruptcy Will Not Stop You From Getting Approved
Buying a home with bad credit is possible with the help of a subprime lender even if you have a recent bankruptcy or foreclosure. These mortgage lenders specialize in financing home loans for people with poor credit.
Say Yes to ISA Mortgages for a Convenient Mortgage Repayment
Customers who opt for an interest only mortgage, and feel themselves fortunate at the extraordinarily low monthly installments, wake up. The mortgage may be fast approaching its repayment.
Non-conforming Home Loans vs Conforming Loans
The simple definition of a "non-conforming home loan" is: You have a job and can make the payments. Your credit is used only to determine your interest rate and the loan amount to value of the home ratio.
What Is The Best Deal For A Mortgage?
Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home.For most of us, our house is the single most important and expensive purchase we ever make!We invest a lot of time and effort into finding the perfect property in the best location and with as many of the features from our wish list as possible, yet, when it comes to finding the best deal for a mortgage, we take what is offered rather than researching and securing the best mortgage for our situation.
The Truth About Shopping for Mortgage Rates
With so much lender advertising focusing just on rates, you may not be aware of the importance in choosing an experienced, reliable loan professional who can match you with the appropriate loan program. Good loan officers and mortgage brokers may quote today's rate when asked, but they will quickly add they need to know more about you to determine the best program for your individual situation.
This Secret Weapon Will Eanble You To Close Up To 200% more Home Remodel Sales
Many Homeowners are not aware of all the options that are available to them when it comes to Home Loans. As a Home Remodeling Specialist you have a very powerful sales tool that most of your competitors don't even know exists.
Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit
Having poor credit alone cannot hold you back from getting the home loan you want. Buying a home that is everything you want in a home, is a very exciting experience.
Thinking About Refinancing Your Loan?
Refinancing your home or property is a big decision that could drastically affect your financial future, for the good or the bad, depending on how smart you go about the process. Take the time to explore all of the different refinancing options you have available to you.
Need Mortgage? Alternative Finance Often Masks Predators, Who Want to Steal Your House
So, your bank had just turned you down for a mortgage application. The same thing also happened, when you went to other banks in your area.
How I Became a Hard Money Lender
Unlike other investors, my venture into real estate was a natural extension of my secondary business as the IP Ware software developer. However, opportunity and perseverance beget wealth, or at least a decent side income.
Refinancing vs Line of Credit
Refinancing vs line of credit are two popular options you have when deciding the best way to take equity out of your home. Sometimes it makes sense to establish a line of credit.
What the Bank Won't Tell You About Mortgage Refinancing
So you have a mortgage, and you need to refinance to get your interest rates low. Most people simply walk into their bank, ask to refinance, and then end up paying more money long term than they would have otherwise.
Mortgage Calculator - How to Calculate Your Monthly Mortgage Payment
Just starting to shop for a new home? Do you want to know how to figure what yourmonthly payment would be based on a certain priced home? No problem, there are plenty of mortgage calculatorson the web you can use free of charge (clickhere for an example of one). All you need to know is the mortgage amount, sale price less the down payment, interestrate (also easy to access on the web), and the number of years you wish tofinance your new home, usually 30 years (360 months) is the maximum term.
First Time Home Owner Mortgage Loans
First time home owners are sometimes surprised at the complexity of the mortgage lending process. If you are searching for a mortgage and you have never owned a home, there a few things you can do to make the mortgage process less confusing.
What Exactly is a Mortgage Broker and How Can He/She Help You Save Thousands on Your Mortgage?
Have you ever heard of a mortgage broker before? If you haven't, then you definitely need to give yourself more options whether you are applying for a new home loan or are refinancing your current loan, and learn what they are all about. Mortgage brokers can help you save thousands over the life of your loan.
Remortgage Serves To Rewind The Reimbursements Of Mortgage
It takes a mighty big effort to secure a home and even mightier to convert it into an earning member. Can a home be converted into an earning member? In contemporary configuration anything is possible! You must be aware of the advantages of mortgage, for you certainly have opted for that before going for a remortgage.
|home | site map|
|© 2006 TIGER MEDIA|