Welcome to Home Mortgage
Current Home Mortgage Interest Rates Tx Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
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.
Current Home Mortgage Interest Rates Tx News
Homes.org Releases Mortgage Rates Update - What the Fed Announcement Means for Mortgage Rates
Homes.org releases latest weekly analysis of mortgage rates focusing on the big Fed announcement made yesterday and what it means for the future of mortgage interest rates in the near future and well beyond.Austin, TX (PRWEB) January 26, 2012 The Homes.org weekly mortgage rate report found that mortgage interest rates have inched upward since last week, however the Fed is aiming at keeping it ...
Read more...Homes.org Releases Mortgage Rates Update - Interest Rates Fall Despite Signs of Recovery
Homes.org releases updated weekly analysis of mortgage rates at the start of 2012 which finds that interest rates have hit a new record low. Analysis also includes a forecast of likely rate changes based on events within the last week.Austin, TX (PRWEB) January 13, 2012 The Homes.org weekly mortgage rate report finds that last week was a good week for mortgage interest rates and the trend is ...
Read more...Homes.org Releases Mortgage Rates Update - How a Week of Market Reports Affected Interest Rates
Homes.org releases latest weekly analysis of mortgage rates covering the reasons for the up and down interest rates, where current rates are at and which market reports are likely to have an effect on mortgage rates in the week to come. (PRWeb February 03, 2012) Read the full story at http://www.prweb.com/releases/mortgage-rate-update/market-reports-and-rates/prweb9162901.htm
Read more...Homes.org Releases Mortgage Rates Update - Fed Helps Rates Stay Steady
Homes.org releases latest weekly analysis of mortgage rates for the third week of January 2012 which finds that interest rates have remained at record low rates thanks to Fed actions and tame inflation.Austin, TX (PRWEB) January 20, 2012 The Homes.org weekly mortgage rate report found that last week mortgage interest rates remained steady and the trend is likely to continue thanks mostly in part ...
Read more...Security America Mortgage, Inc. Announce the New Sponsorship of Affordable VA Loan Calculations, Lowering Mortgage ...
Security America Mortgage, Inc. tells military veterans in Austin how they can still offer the lowest VA Mortgage Loan Rates in Texas by highlighting the new 2012 Calculation changes allowing them to do just that.Houston, Austin, San Antonio, Dallas, TX (PRWEB) January 20, 2012 As of January 1, 2012, the Department of Veteran Affairs changed a few of their standards for how calculations can be ...
Read more...Fitch Affirms MetLife Home Loans' U.S. RMBS Servicer Ratings; Assigns Stable Outlook
Fitch Ratings affirms the following U.S. residential primary servicer ratings for MetLife Home Loans :
Read more...UDR Announces Fourth Quarter and Full Year 2011 Results
UDR, Inc. , a leading multifamily real estate investment trust, today announced its fourth quarter and full year 2011 results.
Read more...