Mortgage Options

By
Real Estate Agent with Live Love Savannah Realty B202106

When folks think about mortgages the traditional 30 year mortgage comes to mind. It means that you are locked into a fixed interest rate for the life of the mortgage unless you decide to refinance later on. There is also the possibility of a 15 year mortgage, which has a fixed rate but larger monthly payments. Some people really like this because it assures a fixed cost every month. However, it also means that money which could be used for other investments will not be available. It is something to consider.

An adjustable rate mortgage, known as an ARM, is a possibility for somebody who is willing to take a risk. The interest rates on these mortgages are fixed to an index such as the ten year bond yield and the rate is adjusted later on In other words the mortgage rate can go up after a few years. There are caps usually placed on the amount of adjustment in any given time period. The benefit is that if the adjustable rate is low you will have some extra cash every month.

The Length of Ownership Is Important

The traditional mortgages assume you're going to be living in the house for a long period of time. That might not be the case, and you may be planning on living in the area only for a few years. There are some financing options that are more sensitive to short-term ownership.

Balloon mortgages are short-term affairs that ordinarily last no more than seven years. At the end of the time period the outstanding balance has to be paid, which can be done by refinancing the home or paying what is owed. It is also possible to have an option ARM. Interest rates are subject to change every month and there is no upper limit. Either one of these alternatives to the traditional mortgage does carry some risk. The option ARM will become more expensive as time goes on, so it is better suited for someone who will only be leaving the home for a while. If the market should ever tank as it did in 2008, people with balloon mortgages are going to be in a very desperate situation.

Good Advice Is Needed in Deciding on the Mortgage

Whether it is a traditional mortgage, or one of the alternatives being considered there ultimately will be a meeting with a bank or other lending institution. A real estate agent may be able to help. Any one of them can give you insights they have about dealing with lending institutions in Savannah. A meeting with a real estate agent can help a person prepare for pre-approval and other meetings about mortgages.

We Provide a Helping Hand

Live Love Savannah specializes in helping people make the right decisions about financing. We are a boutique real estate agency in Savannah, and we are very familiar with financing a home purchase. Although we are not financial advisors nor do we claim to be, we can share our experiences with anyone. That is in addition to the marketing and sales promotion work we perform on behalf of the client. We want to help you find that charming home for you and your family. Please do feel free to give us a call at (912) 341-6601 or email us at livelovesavannah@gmail.com

 

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Topic:
Mortgage / Finance
Location:
Georgia Chatham County
Tags:
investing
financing
home buying
mortgage
georgia realtors
real estate savannah

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Rainmaker
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Kelley Ward
Chinowth and Cohen REALTORS - Owasso, OK
Real Estate Professional serving Owasso and More!

Thanks for the information about mortgages. 

Jan 05, 2016 07:38 AM #1
Rainmaker
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Great information on the basics of mortgages, Julie Farmer .  

Welcome to the world of Active Rain blogging.  It is an extremely valuable platform to connect with other agents and potential clients.  I recommend you check out the "Resources" section and click on "Getting Started".

Happy New Year!

Jan 05, 2016 07:51 AM #2
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Julie, welcome to ActiveRain, and I hope we can help you sell more houses!

Jan 05, 2016 10:08 AM #3
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Julie, great post to give buyers choices when they are contemplating a home purchase!   Welcome to ActiveRain!

Jan 05, 2016 10:52 AM #4
Rainmaker
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Joan Dickie
Keller Williams Premier Realty - La Crosse, WI
Keller Williams Premier Realty

Welcome to Active Rain!  This is a great post that all buyers need.  In your market, what is the predominant type of financing?  

Jan 05, 2016 12:18 PM #5
Rainmaker
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The Temple Team
THE TEMPLE TEAM - Mooresville, NC
Specializing in Lake Norman/Charlotte/Charleston

CONGRATULATIONS on your First BLOG Post!  WELCOME to Active Rain ... You're going to love it here!

KT

Jan 05, 2016 12:31 PM #6
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Joy Bender
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

Congratulations Julie Farmer on your first blog post.  Welcome to Active Rain.  Wishing you a successful 2016

 

Jan 05, 2016 01:06 PM #7
Rainmaker
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Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

Welcome to ActiveRain and best wishes with your mortgage business.

Jan 05, 2016 07:47 PM #8
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Welcome to Active Rain!  As REALTORS who have been here (on and off) for more than 9 years, it's well worth it!

Jan 05, 2016 09:51 PM #9
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Julie Farmer the more options we have and know about the easier our job will be as real estate agents.... sharing this information on AR is always welcomed....

Jan 05, 2016 09:51 PM #10
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

and welcome to ActiveRain....it's a great place to learn, share, market and network....and I hope you enjoy all of it as much as I have and benefit from all of it....

Jan 05, 2016 09:52 PM #11
Rainmaker
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Nancy Robinson Ranked #6 in MI
Century 21 Town and Country - Royal Oak, MI
#11 Century21 Realtor in the US, #16 in the World

Welcome to Active rain  you will find if you are in a jam all you have to do is post a question or blog and many folks will reach  back right out to give you support, suggestions and insight. Glad you found the site.   

 

And thank you for sharing all of this great information

Jan 05, 2016 11:07 PM #12
Rainmaker
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Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Hi Julie! Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Jan 06, 2016 02:10 AM #13
Rainmaker
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Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Hi Julie Farmer, welcome to Active Rain and congratulations on your very first blog post.  I lived on Amelia Island Florida for almost 30 years.

Jan 06, 2016 08:20 AM #14
Rainer
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Nicole Kelsey
Century 21 Whitney Agency Inc. - Kirksville, MO

Welcome to Active Rain! Great first blog post with wonderful information! Best wishes for 2016!

Jan 07, 2016 08:32 AM #15
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Options are important, thanks for the advice Julie!

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
Bob

Jan 07, 2016 01:06 PM #16
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Welcome to Active Rain community! Whether you are new to blogging and looking for blogs to read and learning “how to’s”, or a veteran blogger looking for more exposure and network opportunities this community is for YOU!

Jan 12, 2016 03:19 AM #17
Rainmaker
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Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Listing Agent DE/PA/MD, Digital Marketer & Coach

Hi Julie,  Thanks for Sharing and Welcome to the Rain! ActiveRain is a great place to share your knowledge, expertise and thoughts, as well as network and learn so much from the vast pool of talent already onboard. I look forward to reading your upcoming posts. Welcome Aboard, Happy New Year and Much Success! 

Jan 26, 2016 04:22 PM #18
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Julie Farmer

Savannah, Georgia Real Estate and Homes for Sale
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