There are many different types of mortgage loans available to the consumer. The most common amortized loan types are fixed-rate mortgages (FRM) and adjustable-rate mortgages (ARM).
Fixed rate mortgages are loans in which the interest rate is
locked at a specific and agreed upon rate. Many first time
homebuyers opt for this type of loan, as it allows them the ability
to know exactly what their loan payment will be each month. The
payment stays fixed for the entire term of the loan. Typical terms
are 5, 10, 15, 20, or 30 years.
Adjustable rate mortgages are loans in which the interest rate is
fixed for a short period of time only, and the variation in the rate
is determined by the market. Many homebuyers, especially those not
concerned with adhering to a strict budget each month, prefer these
types of loans. Although different lenders use different indices to
determine the market rate, some of the more common are Prime Rate,
LIBOR, and the Treasury Index.
Fixed rate loans often end up costing more than adjustable rate
loans, but they do not provide the stability of a known and
consistent monthly payment. Adjustable rate loans work by
transferring part of the interest rate risk from the lender to the
borrower, and are widely used when there is instability in the
market and fixed rates are difficult to obtain.
There are also other types of mortgage loans available, although
the aforementioned are the most common. Other types include blanket
loans, bridge loans, budget loans, deeds of trust, equity loans, and
wraparound mortgages. When you are considering your first mortgage,
you are likely to end up choosing a FRM or an ARM. These are by far
the most common mortgage types. Consult your local mortgage broker
for more information on these types of loans.
Interest rates have been relatively stable in recent years, and
many government agencies and financial institutions offer tax and
financial incentives for new homeowners. The Department of Housing
and Urban Development oversees a program called the Federal Housing
Administration in which the government will insure the lender
against a loss (in case you default on your mortgage). Veterans
Affairs also administers a program for military veterans, which
provides assistance and guarantees to veterans interested in
entering the market for a new home.
Whether you are new to the housing market or you have been
involved for decades, it pays to stay informed about recent
developments. New housing starts are at an all time high, and
interest rates are very reasonable. This creates an excellent
climate for prospective homeowners. The time just might be right for
you to buy your first home! Article Author Seymore Hennigan
Seymore Hennigan has worked in finance for many years. When he is
not crunching numbers or advising his family and friends on
investments, he writes freelance articles for
http://www.mortgageguide101.com - an independent mortgage guide
filled with extensive information about
GMAC
Mortgage.
REAL ESTATE (St. Petersburg Times)
Residential real estate In this section you can find different offers on residential real estate from the leading real estate agencies: Apartments for all tastes: standard to luxurious, short or long terms.
What Homeowners Should Know to Stop Foreclosure- Speaking Your Lender's Language
Financial literacy is the means of empowering consumers to make informed financial decisions through exposure to accurate and timely information. In no other area is the void of accurate information more evident that in the area of foreclosure.The national foreclosure rate is at the highest level since the Great Depression. Families fall behind on the mortgage payments because of illness. . . . Read
The Rest Of This Article
Reverse Mortgage Explained
Can't remember how many times I've been asked "What is a reverse mortgage"? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financial lending, the flexibility comes at a price. A reverse mortgage is a loan using your house and is referred to as a “rising debt, falling equity" kind of deal. To compare reverse mortgage to a more traditional on. . . . Read
The Rest Of This Article
Mortgage: for those twilight years
Tracing back, the concept of reverse mortgages began when one good soul, Nelson Haynes of Deering Savings and Loans wanted to help out the widow of his high school football coach. Today that small act has developed into a popular financing option for the senior citizens. With about 6,000 people turning 62 every day, the market is on an upswing. 2004 witnessed a growing number of application. . . . Read
The Rest Of This Article
Retirement In the New Age
Retirement In the New Age Are You Prepared For A Life of Leisure? Consider These Numbers… "At the end of WWII, there were 42 workers paying into Social Security for each person receiving benefits. Today, barely three people contribute for each recipient. Projections are that by 2030, when most baby boomers will have retired, just two working people will contribute for. . . . Read
The Rest Of This Article
