Latest Information On Home Mortgages And Expert Advice On Home Equity

Latest Information On Home Mortgages And Expert Advice On Home Equity Loans

Latest Information on​ Home Mortgages And Expert Advice on​ Home Equity Loans
Latest information on​ home mortgages
Buying your first home is​ a​ huge milestone – and often a​ scary one .​
Be sure you’re getting the​ best value for your money by learning about the​ different types of​ home mortgages available today and seeing available rates from competing mortgage lenders.
There are three sides to​ a​ mortgage: the​ amount of​ money you​ borrow,​ the​ interest rate you’ll pay on​ the​ loan,​ and the​ length of​ the​ mortgage.
The amount you​ borrow depends on​ the​ cost of​ the​ home and the​ size of​ your down payment .​
If you​ purchase a​ $300,​000 home and make a​ down payment of​ $60,​000,​ you’ll need a​ $240,​000 loan.
The interest rate is​ one of​ the​ great variables when looking at​ mortgages and other home loans .​
There are two basic types of​ mortgages: fixed-rate and adjustable-rate mortgages (ARMs) .​
Fixed-rate mortgages have just that – a​ fixed rate of​ interest that never changes in​ the​ life of​ the​ loan,​ so your monthly payment will always be the​ same .​
An ARM has interest rates that tend to​ change according to​ the​ general credit market .​
This can work to​ your advantage when rates go down,​ but if​ market rates increase,​ the​ rates on​ your loan will likely increase at​ a​ similar rate .​
However,​ most ARMs have a​ cap on​ interest rates – this will vary from lender to​ lender.
Nowadays buyers have much more flexibility in​ terms of​ the​ length of​ the​ loan .​
While most mortgages fall in​ the​ 15-30 year range,​ some lenders now offer 40 and 50 year mortgages .​
These longer term mortgages are ideal for people who want lower monthly rates and don’t mind paying off their loan well into retirement .​
Of course,​ the​ longer the​ term of​ your mortgage,​ the​ more interest you’ll pay in​ the​ long run.
Expert advice on​ home equity loans
If you’re a​ homeowner in​ need of​ some extra cash,​ a​ home equity loan may be the​ easiest solution .​
By using your home as​ collateral,​ you​ can borrow money for home improvement projects,​ personal expenses,​ auto payments,​ college education,​ and more .​
Whatever your financial needs are,​ being a​ homeowner could qualify you​ for a​ home equity loan or​ home equity line of​ credit.
The amount of​ money you​ can borrow depends on​ the​ amount of​ home equity you​ have .​
And this may be a​ much higher figure than you​ imagined .​
To determine your home equity,​ simply deduct the​ amount you​ owe on​ remaining mortgage payments from the​ appraised value of​ your home .​
If you​ own more than one property,​ your home equity is​ the​ combined equity of​ all of​ your properties.
Of course,​ details of​ a​ home equity loan need to​ be discussed with the​ lender .​
As with any loan,​ there are certain fees that apply .​
These vary according to​ the​ lender and need to​ be factored into your decision .​
They make include a​ property appraisal fee (to estimate your home’s value),​ a​ non-refundable application fee,​ closing costs,​ taxes,​ and up-front charges.
Other factors to​ consider are the​ payment plan and how the​ loan is​ affected if​ you​ sell your home before the​ end of​ term .​
You may be required to​ pay loan off in​ full when you​ sell your house .​
The term of​ home equity loans can range from 5 to​ 30 years.

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