Shopping For a Home Loan in the Memphis area.
Next to shopping for the home in the Greater Memphis TN area itself, shopping for the home loan can be just as cumbersome. For such a large amount of money, you want to make sure you are getting the best deal possible.
Loan Elements
There are four key elements of your home mortgage payment: the principle, interest, taxes, and insurance. The principle is the amount of money your are borrowing, less any down payment made. The interest is the cost of borrowing, expressed as a percentage of the total amount that you borrow. The money for your property taxes are put into an escrow account until it is time to pay them. Home insurance is required by most lenders. If your down payment was less than 20 percent, you will also be responsible for paying private mortgage insurance.
Types of Loans
There are several different kinds of home mortgages from which you can choose. The major factor to use in the decision of which home mortgage to borrow is the length of time that you plan to be in your home. For example, if you plan to remain in your home for a long time, a fixed mortgage is perhaps the best mortgage to choose.
The two major kinds of home mortgages are fixed-rate and adjustable-rate. As the name suggests, a fixed-rate mortgage, FRM, has an interest rate that doesn't change over the life of the loan. Your monthly mortgage payments will never change. FRMs are typically available for 15, 20, or 30 years. With an adjustable-rate mortgage, ARM, the interest rate varies depending on current market rates. A balloon mortgage is yet another type of home mortgage loan that you can obtain. This type of loan has a lower initial interest rate for five to seven years. After that time, the entire balance of the loan is due, hence the term "balloon" mortgage.
There is a lot of free information available to you about buying, selling or investing in the Memphis TN area real estate. For complete information about the Memphis TN real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Memphis TN area real estate. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer you queries. Call me on my cell at (901) 277-5324 or email me at Olena@OlenaKeene.com.
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