The media attention given to sub prime loans and also to option arms has definitely slowed the pace of individuals looking for creative loan alternatives. It is always a good idea to do some research and also look at your full financial picture when deciding which loan program is best for you. Ask yourself the following questions, How long do I plan to own this home? How long have I had my mortgages in the past, Do I expect my income to increase if the rate goes up and my payment increases? What are my objectives for this loan and what are my financial plans for the next 3, 5, 10 years. Armed with this information meeting with a mortgage consultant should allow you to find the loan that best fits your needs and helps you meet your financial goals. Don't count out the creative alternatives until you look at the full picture. Fixed-Rate Mortgages Most Popular "Mortgage rates on 30-year fixed-rate conventional conforming loans have become more favorable to applicants of refinance loans," Freddie Mac reported. "The difference in rate between fixed and adjustable rate loans has narrowed. Also, although the spread between the 30-year fixed-rate and 15-year fixed-rate mortgages has not moved significantly in recent months, more borrowers replaced their 15-year fixed-rate mortgages with 30-year fixed-rates when they refinanced." The report also shows that refinancing into the 30-year fixed-rate mortgage among borrowers who originally had an ARM loan has been increasing. However, fewer borrowers who originally had a balloon mortgage are switching into a 30-year fixed loan, many opting instead for an ARM or hybrid mortgage. The proportion of borrowers who originally held 30-year fixed-rate mortgages and are now applying for a refinance mortgage of the same type has remained about the same in recent months. For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage Corp. at (800) 741-7813 or 910-692-6225. |
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