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Adjustable vs Fixed Rate Mortgages
Mortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an interest rate that changes based on pre-determined criteria, primarily tied to the federal interest...
Get Free Mortgage Quotes From Top Colorado Mortgage Brokers
Welcome to Coloradomortgagedepo.com - A complete mortgage service site connecting you with best Colorado mortgage brokers and lenders. Let us help you find best Colorado mortgage loan programs with a reputable mortgage lender or mortgage brokers...
Home Mortgage Refinancing: A second chance for homeowners with high interest loans
Home Mortgage refinancing is a great option for homeowners who have a mortgage that is a couple years old, have built up some equity, but find themselves struggling with a high interest debt. The entire home mortgage refinancing process is...
What Happens To My Mortgage When I Sell My Home
You've decided to make the plunge and sell you home. More than a
few people have innocently asked me, "What happens to my
mortgage when I sell my home?"
What Happens to My Mortgage When I sell My Home
If you own a home, you undoubtedly...
Why Are Mortgage Notes Discounted Anyway?
When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition. If there is still a significant period of time left...
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Home Loans and Mortgages – The Selection Can Be Bewildering
For years, when someone wanted to purchase or refinance a home, the choices were simple. The buyer chose either a 15-year fixed-rate mortgage or a 30 year fixed-rate mortgage. That was it. Of course, those were also the days of twenty percent down payments, which seriously hindered the ability of many Americans to obtain the loan necessary to buy their own home. In recent years, more flexible loan types have become available and down payment requirements have been relaxed. There are now far more choices of loan types available for the borrower than ever before. That can be a mixed blessing, however, as prospective borrowers now have to do a tremendous amount of homework in order to determine which type of loan might be the best choice. The selection of loan types that are currently available can be quite bewildering, and the wrong choice could cost the prospective borrower thousands of dollars over the term of the loan.
The standard 15-year and 30-year mortgages are still quite popular. Each provides the stability of a fixed interest rate and a payment that will remain the same throughout the duration of the life of the mortgage. When interest rates are near historic lows, as they are today, these traditional choices work well for most buyers. Buyers who find a 15-year or 30-year mortgage to be within their means would probably benefit from obtaining such a mortgage now.
In recent years, as home prices have increased faster than wages, the lending industry has created more flexible types of mortgages designed to help buyers who may have trouble with traditional loans obtain financing. These types of loans tend to have adjustable interest rates:
The Adjustable Rate Mortgage, or ARM, has a rate that adjusts over time as spelled out in the mortgage agreement. Typically, the rate at the time of singing the loan is lower than that of a traditional mortgage, perhaps by one percent or so. The difference is that the rate can adjust over time as the market changes. The loan agreement will spell out how often the rate may change and how much the rate
may change at one time. The agreement may also indicate a maximum interest rate that may be charged over the life of the loan. These types of loans are ideal for buyers who do not intend to stay in their home for more than a few years, or buyers who are purchasing in times of high interest rates, when there is an expectation that rates will drop over time.
Convertible mortgages are ARMs that offer the buyer an opportunity to “convert” the adjustable rate loan to a fixed rate loan after a certain period of time that is spelled out in the loan agreement. There is a fee charged for converting the mortgage, but the fee is typically less than the fees associated with refinancing the mortgage altogether.
Two Step mortgages offer an initial rate that is lower than the rate for fixed-rate mortgages for the first few years of the loan. After a set period of time, the rate increases to a fixed rate. This allows buyers to pay less during the early years of their loan, when they may earn less or need extra cash for home furnishings. The disadvantage of this type of loan is that the increase in the interest rate can be substantial, and may make the payments unaffordable for some buyers..
These are just a few of the types of loans that are currently available in the market. There are probably dozens of variations on ARM loans, and prospective buyers should study their options carefully before agreeing to a loan. Making the right choice could save buyers thousands of dollars over the life of the loan. Making the wrong choice could leave buyers with a loan that they cannot afford to pay. A little time spent on research is time well spent.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
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Home Loans - Equity, Refinance, Mortgage & Auto | LendingTree.com
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LendingTree - Your ARM could increase as much as 60%. Lock in a low rate now. $175,000 for $930/mo. 15 year Fixed. 1 simple form, get up to 4 custom offers in minutes. |
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www.lendingtree.com
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E-Loan: Mortgage, Refinance, Home Equity, Auto Loans, Savings, CDs
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E-Loan offers home mortgage, refinance, home equity loans, lines of credit, auto and motorcycle loans, savings accounts and CDs with great rates online. No hidden fees. |
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www.eloan.com
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Mortgage: Quotes, Rates, Loans & Refinance by National Mortgage
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Free mortgage quotes, calculators and guides, with unmatched customer service. ... Mortgages free mortgage quotes Home Loans Refinance credit calculator house loan ... |
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www.nationalmortgage.com
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Quicken Loans - Home loans, Refinancing, Interest-only options
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Quicken Loans - Get information, check rates, and learn about refinancing your current home loan. Compare mortgage options, apply online, get pre approved and close fast. |
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www.quickenloans.com
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Current Mortgage Rates in US - Mortgage Interest Rates for Refinance and Purchase Loans
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Comprehensive resource for current mortgage rates and real estate information ... the perfect time to search for mortgage and buy that dream house or to refinance. ... |
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www.saveonrefinance.com
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Mortgage Refinance and Home Loans - Ameriquest
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Choose AmeriquestMortgage.com to find a great mortgage. Ameriquest provides home mortgage loans, mortgage refinancing, and debt consolidation services. |
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www.ameriquestmortgage.com
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Mortgage, Refinance, and Home Equity Loans - GetSmart.com
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A service of LendingTree - Complete a short 2-minute form & get up to 5 free mortgage quotes - no obligation and no Social Security Number required. Bad Credit OK. |
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www.getsmart.com
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Mortgage101.com
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Find mortgage calculators, live mortgage interest rates, and answers to your mortgage questions. |
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www.mortgage101.com
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Ditech.com - Official Site
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Find Low Competitive Rates and Fees Guaranteed at Ditech.com. Get rate info and apply online now. |
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www.ditech.com
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Mortgage Refinance | Home Equity | Home Purchase Loan | Debt Consolidation - 4MortgageHelp.org
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... mortgage loans, home equity loans, home equity line of credit, refinance mortgage. ... are in the market for a refinance mortgage, your best bet is to shop ... |
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www.4mortgagehelp.org
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refinance
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Should I Refinance Now? Search Rates. Tools & Calculators. Mortgage Basics. Home. Equity ... Loans: Mortgage Loans - Purchase Mortgage Refinance ARM ... |
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www.eloan.com/s/show/mortgage_refinance_splash
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Mortgage Refinance Calculators and Mortgage Tools - Quicken Loans
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Mortgage refinance calculators from Quicken Loans allow you to calculate your mortgage payments for a variety of refinance loans, home loans, and lines of credit. |
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quickenloans.com/mortgage_calculator/refinance_calculators/index.html
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Ace Mortgage Funding
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Find the right home loan or refinancing option with Ace Mortgage. We work with a range of mortgage lenders to get your loan approved. Apply online or call now. |
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www.acerefi.com
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GreenlightLoans.com - A Leader in Mortgages and Home Equity Loans
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Greenlight Financial Services - A low rate mortgage lender focused on customer satisfaction with knowledgeable loan consultants for an exceptional client experience. |
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www.greenlightloans.com
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GMAC Mortgage
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With information on refinancing, reverse mortgages and first time home buying. |
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www.gmacmortgage.com
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Chase Home Mortgage Refinance - Mortgage Refinancing - Refinance Home Mortgage
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... Chase mortgage customer you get special benefits on a home mortgage refinance. ... Pay your mortgage online > Access payment addresses and phone numbers ... |
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chase.com/cm/cs?source=RET0024&pagename=Chase/Href&urlname=chase/...
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MORTGAGE REFINANCE - Totally Free!
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[ Discussions | TOC | Search | Post | Reply ] MORTGAGE REFINANCE - Totally Free! ... Comments. MORTGAGE REFINANCE =>> http://business-answer.org ... Last ... |
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nuntia.cs.depaul.edu/webmissiology/_kbas/0000032a.htm
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