| |
| |
|
Mortgage & Refinancing Information |
|
|
|
Fixed-To-Adjustable-Rate-Mortgage
What is a Fixed-To-Adjustable Rate Mortgage? This type of mortgage offers fixed payments for an initial loan period of up to10 years then followed by an adjustable interest rate for the remaining term of your mortgage. Payments are usually lower than most fixed rate mortgages. Why should you consider a Fixed-To-Adjustable rate mortgage? If you plan to live in your home less than 10 years, you can then consider this type of mortgage. You can even customize your rate and payments by selecting the fixed rate mortgage that match how long you plan to live in your home. What are the benefits of a Fixed-To-Adjustable rate mortgage? You can choose a mortgage depending on the amount of time you are going to you remain in your home. You can choose an initial fixed rate loan--whether it would be 3, 5, 7 or 10 years. You can enjoy the security of paying a fixed rates for the initial loan. The mortgage rate will then become adjustable after your timeframe with a lifetime rate cap if the interest rate increases after the initial fixed rate. Your monthly payments will probably increase. You potentially pay a lower interest rate with the initial fixed rate loan then you would get with the traditional 30 year fixed rate mortgage. You can benefit from rates on this type of mortgage based on the London Interbank Offered Rates Index, which is typically lower than the average fixed rate. Large loan amounts are usually available. Secure your interest rate with this locked in rate. Simultaneously, you can establish a home equity line of credit. You can take advantage of available payment options. You can make interest only or fully amortized payments during the initial loan. Then after the initial interest only period, your monthly payments will increase because it was based on a fully amortized repayment schedule of principal and interest. You can prepay principal at any time without a penalty. If the principal payments are made during the interest only, your payments will then be recalculated monthly based on this new lower principal balance. There is usually no fee for the service. The lifetime cap is based on the loan amount and the initial fixed rate term that you selected. The periodic rate is based on the adjustable period for the remaining term of your home mortgage loan you selected. You really need to sit down with your mortgage broker and figure out if this type of payment option is right for you. Are you only planning on staying up to 10 years in your new home? If not, the interest rates can be very high depending on the economy, and you may not be able to afford your monthly home payments with the adjustable rate mortgage. Copyright 2005 Fern Kuhn, RN http://www.diabetestestingcenter.com You may reprint this article as long as you keep the links active
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Home Loans and Mortgages - Beware of New "Mortgage Elimination" Scam The booming real estate market has allowed many Americans to become "equity rich." They may not have a lot of cash on hand, but they might have equity in their homes worth several hundred thousand dollars or more. Why Get Pre-Approved For A Mortgage? One of the most important steps in the home buying process is getting Pre-Approved as early as possible.The Pre-Approval process involves you speaking with a Mortgage Lender about your financial situation, what you'd like to accomplish, and any concerns you have. Stop Foreclosure - 7 Tips to Save Your Home Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry and its army of attorneys against them, the average homeowner might feel like David facing Goliath.But David defeated Goliath !David had a sling and some pebbles. Buying a New Home - Home Buying Tips If you in the process of looking for your first home, there are some essential steps that you should be aware of. Many times, people fall in love with a home and rush into the deal-not considering some important issues. Basic Tips for First Time Home Buyers The first time you purchase a home is an exciting experience. You are anxious to call the place yours and maybe a little worried about how the whole thing will play out. Unlock your Home Loan Piggy Bank With the recent sharp increase in property values your current home could be a pot of gold.Property prices have increase about 20% - 30% over the past year but according to economists this current boom will not continue or much longer despite recent changes in property taxes announced in the budget speech. Kings Bay Saint Marys & Kingsland Georgia Real Estate - Getting a Home Loan with Damaged Credit So, you have made the decision that you would like to become a homeowner. As lenders, we have to perform a credit check. Mortgage after Bankruptcy - Bankruptcy Discharged Yesterday? Purchase a Home Today! So you have been through a bankruptcy and surely have been told to wait at least two years before applying for a home loan. Waiting two long years without any guarantee of being approved for a mortgage after bankruptcy can be disheartening. Kings Bay Saint Marys & Kingsland Georgia - Affordable Home Mortgages Buying a home is usually the largest purchase any of us will make in a life time. When choosing a home, you want to find one that suits your families needs best. Mortgage-Refinance Loan Measurment 101 -- Evaluate Your Own Ability to Pay We live in a society where people are losing their homes at an alarmingly high rate. There are several reasons for this, but one could certainly be avoided -- buying a house that creates a loan that is too large for you to handle. Be Prepared when Seeking a Mortgage When you're looking for a mortgage, whether it's a first time loan or you're taking advantage of an opportunity to refinance an existing mortgage, it may seem that you're wading through a quagmire of uncharted territory. If you're prepared ahead of time, you'll avoid some of the common pitfalls and know how to find the best deal for your situation. Finding the Best Home Improvement Loan Rate If you're looking for a good home improvement loan rate, you might have to take your time and shop around a little bit.The home improvement loan rate that you get can depend on several factors? your credit history, the amount of the loan you're requesting, national interest rates, and even the equity of your house or real estate. Avoiding Foreclosure Scams If your mortgage company is threatening foreclosure, there are things you can do to avoid it (see my article titled "How to Avoid Foreclosure"). However, you should be aware of scams. Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure "Own your home free and clear in 3 to 4 months. Note paid in full!"How does this statement sound to you? Does it bring out a sentiment of grand larceny or does it peek your interest as a means to quickly and legally increase your personal net worth? Would it be moral to cancel a debt you made in such an easy and unfathomable manner? Most importantly, if you were behind on your mortgage would you pay someone $3,000 to perform this elimination service for you?Unfortunately, the answer for many homeowners is "Yes". Mortgage Loans Explained In Plain English With the many different kinds of mortgage loans out there, choosing the right one for your needs can be a difficult task. The following points will help you understand the pros and cons of the different types of mortgage loans available to you. Refinancing Your Mortgage Can Really Save You Money Refinancing a mortgage is simply taking out a new mortgage. It means paying off one or more old debts by getting a new loan. Home Equity Line of Credit - Finding The Best Home Equity Lender Borrowing against the value of your home using a revolving credit account is known as a home equity line of credit. Lenders offer home equity lines of credit in several ways with either fixed or variable interest rates. Homebuyers Loan Guide If you are a homebuyer, there are a few points on a homebuyer's loan that you should keep in mind. These pointers simply ensure that you don't burden yourself with a loan or repayment and that you can get a justified return on your investment. Cash Out Refinance Mortgage Loans - Home Equity, 2nd Mortgage or Cash Out Refinance Loan There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. Home Mortgage Rate Shopping - Why Some Shoppers Give Up And Others Dont About 29% of current homeowners and a much larger percent of consumers with income levels above $50,000 feel it best to stay as far away from offers to finance or refinancing their home as possible. And this seemly for good reason.
|
| home | site map |
| © 2006 |
