Looking For A Home Loan? Here's How To Begin...We'll Provide You With News, Information, Resources And Articles About Loans. We'll Cover Home Loans, Mortgages, Second Mortgages, Home Equity Loans, And Refinancing. As
you explore this site, you'll discover...
|
Hot Topic: Tips On Getting Your Mortgage Loan Approved
|
|
How Choosing The Wrong Loan Program Can Wipe You Out
|
|
7 Critical Questions You Must Answer Before Refinancing
|
|
Insider Secret: 3 Things Your Lender Will NEVER Tell You
|
|
Home.LoanBegin.com
Presents Hundreds Of Articles, Tips, And Resources About
Home Equity Mortgages, Refinancing Home Mortgages, And Home Mortgage
Loans! Updated Daily.
|
|
 |
|
|
Mortgage Loan Tips.
|
Why some people almost always get the lowest interest rate on their mortgage - for the least points - and No Junk Fees!
|
|
 |
| |
Home Buyer Defense Guide.
|
Real estate insider advice to help homebuyers avoid common mistakes when buying a home.
|
|
|
| |
Mortgage Secret Codes Revealed.
|
A step by step guide on how to take control of the mortgage process and also How to beat the brokers and avoid mortgage ripoffs. |
|
|
| |
Fixed Rate or Adjustable?
Author: Gary Gresham
Fixed rate or adjustable rate mortgages are two choices of mortgage loans that most lenders will offer you. Your financial situation, how long you plan to live in the home, the current interest rates, and what risks you are willing to take is the best way to decide which loan makes the most sense for you.
Understanding the benefits as well as the risks of each loan will help when deciding if a fixed rate or adjustable rate loan works best for you.
Fixed Rate Home Loan
A fixed rate home loan offers you monthly principal and interest mortgage payments that never change for the life of your loan. A Fixed rate home loan is the most stable option with very little risk. That is why it is the most popular way to finance a home today.
Fixed rate home loans are available as 30, 20, 15 and 10 year loans and they make sense if you answer yes to the following:
Plan to live in your home more than 5 years
Want the stability of a fixed monthly mortgage payment
Don't want to risk future monthly mortgage payment increases
Some fixed rate home loans can be converted into biweekly mortgages which shorten the life of your loan. By paying your monthly mortgage payment every two weeks, you make one extra payment a year for a total of 26 payments. You pay less interest on your loan and build equity faster.
It makes sense to finance a home with a fixed rate home loan only if you plan to live in your home for 5 years or longer. That is because in the early amortization period of a fixed rate home loan, the biggest percentage of your monthly mortgage payment is applied toward interest. Only a small amount is applied toward the principal but that will gradually reverse itself as the loan ages.
Adjustable Rate Loans
Adjustable rate loans make sense if you plan to live in your home less than five years. Adjustable rate loans can also be easier to qualify for and that may make it easier for you to initially get into a home. You can always refinance to a fixed rate home loan later if your future income is going to increase.
Adjustable rate loans start at a low introductory interest rate which is a lower than a fixed rate home loan. The low introductory rate makes your monthly mortgage payment lower than a fixed rate home loan.
But the trade-off for lower payments of an adjustable rate loan is the uncertainty of the amount of your monthly mortgage payment. However, most adjustable rate loans have cap protections so your monthly mortgage payment doesn't go up too quickly.
Adjustable rate loans make sense if you answer yes to the following:
Plan to move before 5 years
Can afford a higher monthly mortgage payment if interest rates go up
You believe that mortgage interest rates will remain the same or decline in the future
Everyone has different circumstances and only you can decide if the risks or advantages are right for you. These tips should help with your decision if a fixed rate home loan or adjustable rate loan works best for you.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
About the Author
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
Article Keywords:
Home Loans
|
 |
|
|
As you may know, I have a very deep passion for real estate and mortgages. In
fact, this website is a true labor of love for me.
As publisher, one my many duties is to review the many books, programs
and courses about real estate and mortgages that are on the market today. I’ll
be honest with you. Most of them are garbage. (Although
I do strongly recommend the programs in the “Must Have” box
above).
But, let me tell you, when I came upon the following headline, I new
I found a winner…
“Learn How To Quickly Build At Least $40,000
Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less”
-Without Making Biweekly Mortgage Payments-Or Changing Your Current Mortgage.
Now, the reason I knew it was a winner was because of the name behind
the headline. Craig Romero. Many consider Craig to be one
of the true geniuses in our field. I have a lot of respect for
him, and I
urge you to drop what you are doing right now and click the link below... |
|
|
|
|
Continue
Reading... 