Home Mortgage Loan - Which is Best for You?
There are two types of mortgage programs conventional and government. All mortgages can either have fixed mortgage rates or variable mortgage rates.
You can look out for various government programs available for consumers today including FHA (HUD), VA, and RHS. Additionally there are state and local housing programs that vary by locale.
Conventional loans are either fixed or variable mortgage rates.
In case you are interested in conventional loans, as mentioned earlier, you have two choices namely fixed mortgage rates & variable mortgage rates.
a) Fixed Mortgage Rates: Today fixed mortgage rates are available with 15, 20, 25, 30, 40 & even 50 year terms. The amount of interest is directly proportional to the term you choose. The longer the term the more interest you will pay; the shorter the term of the loan the lower the mortgage rate will be. For instance, with a 15-year term your mortgage rate might drop as lower as half than a 30-year term. Over the course of the loan this will save you enormous amounts of money. The payments on a monthly basis will be higher with a shorter-term loan however.
b) Variable Mortgage Rates: As the name implies have varying interest rates depending on the type of product and there are a wide variety. Some of them are; negatively amortizing loans, two step mortgage, convertible ARM, lender buy down, fixed period ARM's, and Graduated Payment Mortgages.
There are a variety of situations where a variable rate loan might actually be best for you and you could benefit from using one.
Other types of loans are Interest only loans with a balloon payment, reverse mortgages, and Jumbo loans.
With so many programs to choose from it is important to find the one that is best suited for your needs. The major determining factors are how much of a monthly payment you can afford (not to be confused with how much you qualify for) and how long you plan on staying in your house. There are pros and cons with each program. There is bound to be one that suits your situation better than the others.
Your quest for the BEST deal on a home loan starts with knowledge and information-you can't have too much of either.
Related Tags: home equity, home loan, refinance mortgage, mortgage rate, mortgage finance, mortgage quote, mortgag
Click on these links below for some great FREE information and resources you may not find elsewhere =>http://www.m-o-r-t-g-a-g-e-r-a-t-e.com and =>http://www.h-o-m-e-e-q-u-i-t-y-l-o-a-n.com
Homeowners should check out =>http://www.h-o-m-e-s-e-c-u-r-i-t-y.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Understand The Fha Guidelines Before Considering Fha Mortgage
The U.S. economy was hit hard by the global financial meltdown. In the housing sector, the crisis is - Basic Facts About Multifamily Apartment Construction Loans
When you make an investment, you surely think of getting something out of it to make the deal profit - Commercial Mortgage Refinance Loan - Ideal Solution For Financial Problems
Financial security is something which we have to plan from before. In life, there is no certainty wh - Free Government Grant Money Eligibility Requirements
All of us hear about free government grant money. But what is involved in obtaining this money? What - Top 10 Tips On Buy To Let Mortgages And Property Hunting
If you are looking for an opportunity to invest your savings or any money you have come into, there - A Few Tips On How To Stop Foreclosure
In case you are facing certain financial catastrophe caused by a loss or relocation of a job, or wha - How To Stop Foreclosure And Lose Your Residence To The Bank
In today's market, there are more and more citizens that get big loans then they use their home as a - Most Excellent Way To Stop Foreclosure - The #1 Blueprint For Saving Your Home
Just what is the best measure to stop foreclosure? No doubt you are browsing for an answer to that q - Act Fast To Stop Foreclosure
If you would like to find out how you can put a stop to foreclosure, there is not much to accomplish - Tips For Buying A Home With No Money
There is a popular belief that you can only buy a home if you have great credit. This is false becau
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som
