Articles & News About Mortgage Loans

Home Mortgage Loan Information - Which Type of Home Loan is Best For You?

If 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.

Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.

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

MORE ARTICLES:

Hard Money Loans - Reasons Why You Might Want To Try Applying With A Subprime Mortgage Lender
Before you apply for a hard money loan, try applying with a subprime mortgage lender first for lower rates and fees. Hard money lenders charge excessive fees to high-risk borrowers, but will only lend 50% to 75% of the value of the property.

Network Mortgage Services Grows by Five
Network Mortgage Services has announced that the company has added three loan officers and two support staff to its growing origination team.

Perisso Mortgage Expands to Nevada and Arizona
Attention! Hard money apartment and commercial loans now available in Nevada and Arizona. Business owners and residents throughout the Southwest now have access to the same competitive interest rates and top quality service available to California residents. Perisso Mortgage lends hard money to borrowers in a variety of circumstances commercially in Nevada and Arizona and will soon offer residential in those states as well.

Adjustable Rate Mortgage & Mortgage Insurance
If you own a home, or looking to purchase a home you are probably familiar with the two main mortgage types Those two types being the traditional fixed mortgage and the adjustable rate mortgage (ARM)

Commercial Capital Alliance is Proud To Announce Our Commercial Mortgage DVD Training Affiliate Program
Founded by Charles Wallshein Esq., a nationally recognized closer and trainer, Commercial Capital Alliance has been involved in the market as a commercial mortgage lender/broker, CE provider and commercial mortgage market trainer for over 16 years. With over 500 copies of our DVD program sold in less than 6 months through only our own internal marketing, we have created our Affiliate Program in order to work with partners around the country educating mortgage brokers and investors. The feedback on our training program has been great, and with the flux in the mortgage market the timing could not be better.

Reverse Mortgage
Mortgage trends come and go, and it seems that banks are constantly offering new ways to lure potential borrowers to sign a little more of their lives away. One of these is the reverse mortgage.

Reliable Lenders and the Trusted System of the Tom Martino Troubleshooter Mortgage
Tom Martino has helped customers for more than 30 years as an advocate for consumer rights. Tom Martino mortgage help is now being offered as part of the Tom Martino troubleshooter mortgage referral system.

Mortgage Applications Begin to Rise, After a Long Decreasing Run, According to Reports
The number of mortgage applications begins to rise this week, after battling a long spout of decreasing number of mortgage applications, according to some MBA reports and shoprate.com

Guides in Picking the Right Mortgage to Afford a New Home
Purchasing a home will be the largest purchase you will make in your entire life. So, finding the right mortgage can be vital. Seeing that there are thousands of mortgages out there, it is not easy to get one and apply for it.

Reverse Mortgage Leader Vertical Lend Announces Name Change: Company Renamed World Alliance Financial
Vertical Lend, Inc., a leading provider of reverse mortgages, announced today that it has changed its company name to World Alliance Financial Corp. The purpose of the name change is to better align the company's identity with its expanded product and service offerings, correlating with its recent acquisition by KBC Financial Products, a wholly-owned subsidiary of Belgian-based KBC Bank NV. Established in 1996, World Alliance Financial ranks among the top three reverse mortgage providers in the country. KBC Financial Products (KBCFP) is a market-leading specialist in equity-linked, credit and fund-linked derivatives.

100% Single Loan Financing with No Mortgage Insurance Is Now Available for Real Estate Investors
100 percent single-loan financing with no mortgage insurance is now available to real estate investors.

How Much Mortgage Can I Afford?
Shopping for a home can be an exciting time in one?s life. There are so many things to consider; how many rooms, how many bathrooms, the neighborhood and the school district. However, perhaps the most important consideration is how much house one can afford. The general rule of thumb is that most homeowners can afford a mortgage loan that is 2-2.5 times their gross income. This means a family with a household income of $100,000 could probably afford a $200,000-$250,000 home. Of course this is generalization. There are other factors to take into consideration.

Cheap Mortgage Insurance: Offering You Peace Of Mind
There can be no worse feeling than staring the prospect of losing your home directly in the face. This is the reality faced by many individuals in the UK every day, and yet it is easily preventable with cheap mortgage insurance. Far less people protect their mortgages with cheap mortgage insurance when they are initially approved for their mortgage because they perceive mortgage payment protection insurance as redundant. However, it is the ?what ifs? in life that can cause us the most problems.

4.1 Million Use Credit Cards For Mortgage or Rent
There?s nothing wrong with debt in itself Without debts such as mortgages and car loans, we wouldn?t be able to live our lives the way we want

New Jersey Mortgage Bank Joins Nationwide Association for Responsible Lending
Determined to show integrity, ethics and professionalism still exists in the mortgage business today, one lender is on a quest to prove they value the client more than the commission. Approved Funding Corp., a 20-yr-old Mortgage Bank, has recently joined the National Association of Responsible Loan Officers to ensure responsible lending practices, and to assist homeowners and homebuyers with proper financing options.