Latest Information On Home Mortgages And Expert Advice On Home Equity Loans
Latest information on home mortgages
Buying your first home is a huge milestone ? and often a scary one. Be sure you're getting the best value for your money by learning about the different types of home mortgages available today and seeing available rates from competing mortgage lenders.
There are three sides to a mortgage: the amount of money you borrow, the interest rate you'll pay on the loan, and the length of the mortgage.
The amount you borrow depends on the cost of the home and the size of your down payment. If you purchase a $300,000 home and make a down payment of $60,000, you'll need a $240,000 loan.
Mortgage Cycling Revealed. Learn How To Quickly Build At Least $40,000 Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less
The interest rate is one of the great variables when looking at mortgages and other home loans. There are two basic types of mortgages: fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages have just that ? a fixed rate of interest that never changes in the life of the loan, so your monthly payment will always be the same. An ARM has interest rates that tend to change according to the general credit market. This can work to your advantage when rates go down, but if market rates increase, the rates on your loan will likely increase at a similar rate. However, most ARMs have a cap on interest rates ? this will vary from lender to lender.
Nowadays buyers have much more flexibility in terms of the length of the loan. While most mortgages fall in the 15-30 year range, some lenders now offer 40 and 50 year mortgages. These longer term mortgages are ideal for people who want lower monthly rates and don't mind paying off their loan well into retirement. Of course, the longer the term of your mortgage, the more interest you'll pay in the long run.
About the Author: Find out more about Home Mortgages and Home Equity loan and compare rates from best lender in your state.
Buying your first home is a huge milestone ? and often a scary one. Be sure you're getting the best value for your money by learning about the different types of home mortgages available today and seeing available rates from competing mortgage lenders.
There are three sides to a mortgage: the amount of money you borrow, the interest rate you'll pay on the loan, and the length of the mortgage.
The amount you borrow depends on the cost of the home and the size of your down payment. If you purchase a $300,000 home and make a down payment of $60,000, you'll need a $240,000 loan.
Mortgage Cycling Revealed. Learn How To Quickly Build At Least $40,000 Worth Of Home Equity And Pay Your Mortgage Off In 10 Years Or Less
The interest rate is one of the great variables when looking at mortgages and other home loans. There are two basic types of mortgages: fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate mortgages have just that ? a fixed rate of interest that never changes in the life of the loan, so your monthly payment will always be the same. An ARM has interest rates that tend to change according to the general credit market. This can work to your advantage when rates go down, but if market rates increase, the rates on your loan will likely increase at a similar rate. However, most ARMs have a cap on interest rates ? this will vary from lender to lender.
Nowadays buyers have much more flexibility in terms of the length of the loan. While most mortgages fall in the 15-30 year range, some lenders now offer 40 and 50 year mortgages. These longer term mortgages are ideal for people who want lower monthly rates and don't mind paying off their loan well into retirement. Of course, the longer the term of your mortgage, the more interest you'll pay in the long run.
About the Author: Find out more about Home Mortgages and Home Equity loan and compare rates from best lender in your state.
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