Finance Articles

What Length Mortgage Is Right For You?

You've found the home that is right for you, and now you need to do the same thing for a mortgage. There are several options for people out there, each one designed for a different type of buyer.

You need to ask yourself several questions when searching for a mortgage type.

1. How long am I planning on being in this home?

2. What monthly payment can I afford?

3. What type of payment fits into my long-term financial plan?

4. What type offers me the best rate for my situation?

Since most people like the security of knowing what their payments will be long term, many will get a 15 yr. Or a 30 yr. Fixed rate loan. But this may not be what would work best for you. Below are some things to consider when making your selection:

Fixed Rate Loan-

This works well for those with a steady income who like the stability of knowing what their monthly payments will be. If you have little or no down payment, a 30 yr. Fixed Rate loan is probably the best one for you. If you have a larger down payment and can afford a higher monthly payment you can opt for a Fixed Rate loan for 15 yrs., or even in lengths of 10, 20, or 25 years. Some lenders offer 40-year mortgages, which would allow some people to buy a larger house without the larger payment. The longer the loan terms, the more interest you end up paying. You always have an option to pay additional principal as the loan progresses. This would decrease the amount of interest you pay on the loan long term, and shorten the length of the loan.

Variable Rate Loan-

Most Variable Rate loans start out with a fixed rate for a specified length of time and change to a variable rate loan. These work well when people expect their income to increase dramatically after a few years, or those planning to move from the house after a few years. The most common loan lengths are 3/1, 5/1, 7/1, and 10/1. The first number is the length of time in years the loan is at a fixed rate. The second number is the length of time in years that it would adjust in after the fixed rate period. There is a cap on the amount of percentage points it can go up after the fixed rate period. It is usually 2% a year. With these types of loans you may pay more principal and less interest in the long run.

Biweekly Fixed Rate Loan-

This loan type works similar to the fixed rate loan, but essentially is a guarantee that you will put extra money toward your principal. You pay half your payment every two weeks instead of monthly. You end up making 13 payments a year instead of twelve, thereby reducing your principal early and reducing the length of your loan.

With some careful consideration on your part you will be picking the perfect loan for you in no time at all.

Genesis Font is an SEO and Developer for Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

8 Sure-fire Tips For Enticing Readers In Your Mortgage Marketing Letters
Because I?m a copywriter, my opinion is likely a little biased, but I truly feel the power of the pen is mightier than the spoken word. When we listen to someone speak, the words we hear are rarely repeated ? unless requested ? and they don?t have the same ?staying power? as a phrase permanently placed on a piece of paper.

Is An Interest Only Mortgage A Good Idea?
If you are looking for a home but you know that paying a mortgage will be a severe drain on your finances, then perhaps you should look at getting an interest only mortgage. If you are unsure about what an interest only mortgage is and how it can help you, then this article can provide you with some useful tips on getting an interest only mortgage.

Getting The Best Second Property Mortgage Deals
It doesn?t matter whether you are buying a second property with the intentions of just having it as a holiday home, or if you are going into it with the intention of turning it in to a holiday buy to let business, when it comes to getting the best second property mortgage deals you are going to have to go about it the right way.

Mortgage Protection Provides A Replacement Income
How would you manage to keep the roof over your head if you were to find yourself unemployed What would happen if you fell ill and had to remain out of work for many months while you recovered

Back by Popular Demand: Webinar on Generating Mortgage Leads Using Pay Per Call Advertising on Jan. 24
Integrated Direct LLC and Integrated Interactive LLC, independent direct marketing and interactive marketing agencies, announced today that they will host their first FREE webinar of 2007 on pay per call marketing for mortgage companies on January 24th at 12pm EST.

Investment Strategies: Should You Become an Angel Investor?
With a turbulent stock market and a real estate market in serious decline, it definitely makes sense to seek out alternative investments One possibility that many wealthy individuals overlook is making investments in private equity

Think You Cant Get a Mortgage?
You've finally found that dream home that you have always been searching for, but you are afraid to apply for a mortgage because you have bad credit or less than perfect credit.Before you give up entirely, there are many mortgage programs that are geared towards people just like you.

Property Development UK Finance Varies For Rates Of Interest So Go With A Broker For The Best Deal
Property development UK finance can vary considerably depending on where you choose to go for the loan. Interest rates will depend on such factors as the project you are undertaking, the size of it and the individuals experience in the field. However you can also make savings if you choose to go with a broker rather than just taking finance from the high street lender. The reason for this is a broker will negotiate with lenders who they find by searching the whole of the market place.

Real Time Mortgage Leads
If you are a loan officer or mortgage broker, and you are on the market for mortgage leads, you may want to consider buying them in ?real time.?

Real Estate Investment For Your Retirement
Real estate investment can be a fantastic way to build equity, gain capital and increase your net worth as you prepare for retirement To learn more about the different ways real estate investment can help you in your retirement and create income streams, keep reading

Risk Management in Islamic Banking: An Integrated Approach
The Global Association of Risk Professionals and IRIS integrated risk management, organize the seminar "Risk Management in Islamic Banking: an integrated approach."

Investment Property in Dubai
Why the investment property market in Dubai has boomed

How Cheap Mortgage Payment Protection Insurance Can Help First Time Buyers
Cheap mortgage payment protection insurance is a mortgage extra that very few first time buyers actually consider before the subject comes up in a mortgage interview. This is not surprising given the fact that they are new to the process of applying for a mortgage and probably have all sorts of information spinning around their mind. However, cheap mortgage payment protection insurance is most definitely something that no homeowner should dismiss without first seriously considering.

Law Practice Finance
How do you finance a growing practice? It is impossible to have a successful practice without good cases and managing good cases to a successful conclusion requires money for working capital. So, how does a growing practice secure the working capital it needs?Historically, growing practices in need of working capital have had limited financing alternatives.