Welcome to Home Mortgage
Bad Credit Home Mortgage Loan Article
This is a selection made from among articles on Bad Credit Home Mortgage Loan. For a permanent link to this article, or to bookmark it for future reading, click here.
Home Mortgage Loan Information - Which Type of Home Loan is Best For You?
from: Carrie ReederIf you are considering buying a home, then you may be more than a little confused by all of the terms you hear about home loans. After all, lenders throw around words like fixed rate, balloon mortgages and adjustable rate mortgages without a thought. But if you aren’t at least familiar with the basics—those terms can be pretty confusing!
Here’s a basic guide to the three most common types of home loans. Study it, and determine which one is right for you.
Fixed Rate Home Loan
If you are thinking about buying a home and staying in it until you pay it off, then you will probably want a fixed rate home loan. With this type of loan, you will be assigned a fixed interest rate, and then that rate will not change for the life of the loan. If interest rates skyrocket, yours will remain the same. On the other hand, if they plummet, you will likely be paying a higher rate. (You can always refinance in order to get a lower rate.)
Adjustable Rate Mortgage (ARM)
The interest rate with this type of loan goes up and down with the market. In other words, if the interest rate is low, the rate on your home mortgage will be low, but if it’s high, your loan interest rate will reflect it. And because the interest rate on a home mortgage loan affects the payments, you will never know from reporting period to reporting period what your monthly mortgage payments will be. This type of loan obviously isn’t for everyone.
So, who might use an ARM? For starters, if you are purchasing a house for investment purposes and plan to sell it quickly, you might take advantage of low interest rates by getting this type of loan—particularly if it looks as if they may go lower. Another reason to use an ARM as a home loan is if you are buying a home in a time when interest rates are on the decline. You can take out an ARM, and then change it to a fixed loan once the interest rates bottom out.
Balloon Mortgage
With this type of loan, you will make monthly payments for a fixed amount of time, with a fixed interest rate. The difference is that at the end of the payment schedule, you will owe the unpaid balance in one lump sum. If you use a balloon mortgage, you will find that the interest rates are much lower than either a fixed rate mortgage or an ARM.
The obvious negative to this type of loan is that huge payment due at the end, but if you are planning to hold the house for a short period of time, then this might be the loan for you.
By understanding the various types of home loans that are available to you, you will be better prepared to make a decision that is just right for you and your family.
To view our recommended sources for home mortgage loans, visit: Recommended Home Mortgage Lenders Online.
About the Author
Carrie Reeder is the owner of ABC Loan Guide, an
informational website with articles and the latest news about various types of loans.
Bad Credit Home Mortgage Loan News
Mortgage Loan Applicants Are Welcomed at Family First Federal ... - MarketWatch
Mortgage Loan Applicants Are Welcomed at Family First Federal ... MarketWatch - The credit union provides various mortgage services including construction loans, mortgage refinance and home equity options. Anyone who lives, works, ... |
FHA Will Take on Subprime Loans Shunned by Lenders (Update2) - Bloomberg
 ABC News | FHA Will Take on Subprime Loans Shunned by Lenders (Update2) Bloomberg - There have been so many crackups.'' Subprime mortgages are given to people with bad or limited credit histories. Alt-A home loans typically require little ... Latest Mortgage Trends [Housing Tracker] Bailout not a panacea for US housing market Federal agency offers help fending off foreclosure |
Lockhart says Freddie, Fannie may sell bad assets: report - MarketWatch
Lockhart says Freddie, Fannie may sell bad assets: report MarketWatch - Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans ... Many pieces go flying from mortgage implosion Crisis was a long time coming Students, faculty wary of financial fallout |
Back from the brink on the North Side - Minneapolis Star Tribune
Back from the brink on the North Side Minneapolis Star Tribune, MN - Fannie Riley was behind on her mortgage and afraid to open her mail when the stranger showed up at her front door. She knew he meant bad news. ... |
Not Everyone Should Own a Home - Wall Street Journal
Not Everyone Should Own a Home Wall Street Journal - Take nonrecourse mortgage loans. When Australians borrow money to buy a house, they know that if they default and the mortgaged property doesn't cover the ... Blame inept leaders, not capitalism |
Reverse Mortgages: Saviors for Seniors - Mountain News
Reverse Mortgages: Saviors for Seniors Mountain News, CA - With a reverse mortgage, however, the loan is not paid off until the borrower dies or leaves his home for 12 months or more, such as moving to a senior-care ... |