loan: Mortgage Interest Rates
- 11/04/06 04:24 AM
An important aspect of your home mortgage is the interest rate. This rate is negotiated for a period of time - from 6 months to as long as 10 years. This time period is the period over which you will pay the agreed interest rate. The lower your interest rate, the less you pay in interest costs over the life of the mortgage. This can also save you thousands of dollars, especially on the mortgage you negotiate when you first buy your property. When you first buy your property the amount of your mortgage will be the biggest it will ever … (0 comments)
loan: A Mortgage Loan After Bankruptcy
- 10/29/06 04:24 PM
Are you ready to buy a home, post bankruptcy? Start by determining how much house you can afford. This is critical. You don’t want to get into the same money squeeze as you were in before. Including principal, interest, taxes and insurance, it’s a pretty safe estimate that you can afford to pay a mortgage equal to 20% of your pretax income. Lenders will often preapprove you for up to 28% of your pretax income, but you’re best to avoid this temptation. Let’s work out the numbers: with $50,000 in annual pretax income, your lender will likely approve you for a monthly … (1 comments)
loan: Choosing the Right Mortgage
- 10/27/06 05:50 PM
Perhaps the single biggest decision you make when buying a home (other than picking the home itself) is finding the right mortgage. The "right" mortgage will get you the right payment options, the right interest rate and the right lender to work with. The wrong mortgage? Well, you could end up with trouble with a bad lender; you might end up paying thousands more if your interest rate is too high; and with the wrong payment options, you won't be able to get rid of your mortgage as quickly as you'd like. And after all, we'd all like to be mortgage-free … (0 comments)
loan: Fixed Rate Mortgage
- 10/27/06 05:47 PM
A large majority of people choose the fixed rate mortgage. This mortgage guarantees a certain interest rate for a period of time. The most popular fixed mortgages are 3,4 and 5 years. However, you can have a fixed mortgage for as short as 6 months or as long as 10 years. The biggest selling feature of fixed mortgages is the 'guarantee' of the payment that you will be paying. However, if you pick a long-term fixed mortgage - say 5 years - you'll pay a lot for the privilege of having your interest rate locked in. In general, unless interest rates are … (0 comments)
loan: Interest Only Mortgage
- 10/27/06 05:46 PM
An "interest-only" mortgage is like a line of credit. You can pay only the interest on the mortgage. This can greatly reduce your payments in time of financial stress. However, it also means that the debt will never be paid off. With an interest only mortgage, you pay only interest for the first five, 10, even 15 years of the loan. This can lower your monthly payment by quite a lot. And that seems to have increased the popularity of interest only mortgages in the past few years. The interest only mortgage is an interesting mortgage type. All you pay over the life … (0 comments)
loan: Adjustable Rate Mortgage
- 10/27/06 05:43 PM
Adjustable rate mortgages do what you'd expect - the rate 'adjusts'. It works like this: With a fixed rate mortgage your monthly payments will be the same over the life of the mortgage. You'll always know what you'll have to pay. In contrast with an adjustable rate mortgage (sometimes called an ARM) your payments will change over time. The mortgage payment will be 'adjusted' when the interest rate is adjusted. You can expect the interest rate to be adjusted at regular intervals. Usually, you start with a period of a year at a fixed rate. This rate is often quite low, … (0 comments)
An important aspect of your home mortgage is the interest rate. This rate is negotiated for a period of time - from 6 months to as long as 10 years. This time period is the period over which you will pay the agreed interest rate. ;)
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