Mastering the Mortgages Maze
by: Gay Redmile
So...you're about to buy a property and need a mortgage...
Where do you begin?
Whether you are a first home buyer, have bought and sold several times, are re-financing, seeking an equity loan, or even a reverse motgage - there are a lot of thing to consider...
Do you choose fixed rate, variable rate, adjustable rate - or interest only.
Rates, fees, costs - can all vary.
Let's have a look at the differences:
Fixed Interest Rate -
usually fixed for the life of the mortgage, say 15-30 years, regardless of increases or decreases in market rates.
This type of mortgage is ideal for those on a budget - as you always know what your repayments are.
Adjustable (Variable) Interest Rate - this type of mortgage allows the interest rate to be adjusted according to the current market rates -usually adjusted at the end of pre-determined periods.
These tend to have lower
monthly payments and are more flexible than fixed.
Balloon Mortgage - this is fixed amount payments for a period of time and then one large payment (balloon) towards the end of the term.
Graduated Payment Mortgage - this is where the payments start off small and gradually increase.
Interest Only - this type of mortgage is usually only for a specified time - where interest only is paid - so the principal is not reducing.
Usually only used for a short time, or to finance a second property.
Second Mortgage - this is based on the amount of equity you have in your home.
Usually used for home renovation, to consolidate debt or to purchase a second property.
Usually set payments at a fixed interest rate.
Be aware that interest rates are usually higher.
Home Equity Mortgage - this is borrowing against the equity in your home.
It is often used to finance home renovations.
Interest rates can vary, as can the fees and term - it is a very competitive market - so do your homework.
This loan can have tax advantages - however, your home is up as collateral.
Reverse Mortgage - also known as 'equity release'.
This is for seniors to convert the equity in their home to cash.
Repayments are not required until they permanently move, sell, die or reach the end on the loan term.
About The Author
Gay Redmile is the webmaster of several finance and investment sites. Being a home owner and also owning investment properties - she is fully aware of the importance of researching and understanding all about mortgages.
|
Bad Credit Mortgage ? Sometimes Bad Credit History Can Be Rewarded?
Bad Credit Mortgage ? Sometimes Bad Credit History Can Be Rewarded?
by: Troy Francis
When you have bad credit you wonder what lenders will offer you for a mortgage deal on your home. The big obstacle, as you know, was your bad credit history. To add to the all the fears, there were a few pals of yours who held that the deals offered to you will not be as good as regular mortgages.
However, before you decide not to mortgage because of bad credit history, let me say,
mortgage lenders generally do not give much importance to bad credit history. Through this article, we will inform borrowers of bad credit mortgages which are basically mortgages for the people with bad credit history and the options for bad credit.
Ok! Why is it that mortgage loan providers ignore bad credit history while offering bad credit mortgage? Is it because they don?t fear for payment? Well, fact of the matter is that most borrowers with bad credit history do...
Bad Credit Mortgage ? Sometimes Bad Credit History Can Be Rewarded?
Mortgages > Bad Credit Mortgage ? Sometimes Bad Credit History Can Be Rewarded?
ARM ? Adjustable Rate Mortgages
ARM ? Adjustable Rate Mortgages
by: Dan Lewis
Traditionally, homebuyers could look to two forms of mortgages ? fixed rate and adjustable mortgages. While there are now many more options, this article takes a look at the adjustable rate mortgage.
What is an ARM Loan?
An adjustable rate mortgage [?ARM?] is a basic mortgage with one important exception. With an ARM, your interest rate will start low but typically move up throughout the link of the loan. The timing of the movements is dictated by the terms of the loan. The rate may be adjusted every month, but more typical periods are every six or twelve months. Most adjustable rate mortgages also have a cap on the amount the interest rate can be raised in a particular period.
?ARM? Yourself?
A homebuyer has to be very careful when selecting an adjustable rate mortgage. Buying a home necessarily involves budgeting out how much of a monthly mortgage rate you can afford to pay. With...
ARM ? Adjustable Rate Mortgages
Mortgages > ARM ? Adjustable Rate Mortgages
Rhode Island Mortgage Loans
Rhode Island Mortgage Loans
by: Mark Lambie
Whether you live in the Blackstone Valley, Block Island, East Bay, South County, Warwick, Providence, or Newport you know that Rhode Island offers so much to you. "Little Rhodey" is rich in history and her residents love living there. You can too as Rhode Island Mortgage Loans are widely available for home buyers. Let's explore two popular loan options available to you.
1. Fixed Rate - Loan rates are fairly stable right now. You can lock in a fixed rate for a 15 year or 30 year mortgage; some financial institutions are even offering 20 year term mortgages too.
2. Variable Rate - Usually as much as one point lower than a fixed rate loan, variable rate mortgages allow for home buyers to get more house for the money or save on monthly payments. Rates can fluctuate, so make sure limits are in place to keep your loan from increasing too rapidly or too high.
Other, less known Rhode Island Mortgage...
Rhode Island Mortgage Loans
Mortgages > Rhode Island Mortgage Loans
Basic Home Loan Terms Explained
Basic Home Loan Terms Explained
by: Max Hunter
The wonderful world of home buying can sometimes overwhelm the first time homebuyer. They are inundated with information riddled with terms of art. ARMS, points, interest rates, good faith estimates, pay-downs, lock-in dates, so on and so forth. Though some or all of these terms may seem somewhat foreign to you, do not get overwhelmed, there are simple explanations for each and every one of them.
Let us start with the different types of loans there are. Typically all home loans fall into two basic categories: mortgages and home equity loans. Mortgages are simply a loan against property that is secured with a "mortgage". This "mortgage" is basically a lien against the property until such time that loan is satisfied. So a mortgage is a loan against property that is secured with a lien against it.
A home equity loan is a loan that is also secured with a lien against the property. The home equity...
Basic Home Loan Terms Explained
Mortgages > Basic Home Loan Terms Explained