Welcome to Home Mortgage
Financing Home Mortgage Rate Calculator 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.
Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
from: Carrie ReederA mortgage is usually the biggest purchase that an individual makes, and because of that, many people tend to get nervous during the process. But wouldn’t it make things easier if you felt that you had a “handle” on the process—or at least the terminology? After all, in order to get the best deal on your mortgage loan, you will need to understand certain things such as points, interest rates and closing costs.
If you feel like you could stand to brush up on your mortgage loan terminology, why not read the following common terms and their definitions?
Points
A point is amount that a borrower will pay in order to reduce the interest rate on their mortgage. One point is generally equal to 1% of the loan amount. For example, if you were taking out a 100,000 mortgage, and wanted lower interest rates, you might have to pay anywhere from 1-3 points (or $1,000-3,000 dollars) to get that rate. It’s important to note that some lenders will advertise very low interest rates, and only when you read the fine print will you learn that you will have to pay points in order to get them.
Interest Rates
When a lender makes a loan, they make money by charging interest on that loan. With a mortgage loan, all of that interest is front-loaded, which means that for the first few years, every payment that you will make will go mostly toward the interest.
When applying for a mortgage, you will have the option of “locking-in,” or “floating” your interest rate. If you choose to lock-in your rate, then you will be assured—for about 60 days—that when you close it will be at that rate. However, if it appears that interest rates will go lower, you can choose to float the interest rate, which means that you can watch the rates carefully, and then lock it in whenever it reaches an amount that you are comfortable with.
Closing Costs
When you go to close on your home at the title company, both the buyer and seller will have to pay a pre-determined amount of closing costs. These are determined by the type of loan you get, and the area where you live. Your lender is required by law to inform you of any closing costs beforehand, so be sure to ask for your truth in lending estimate.
As you can see, mortgage terms aren’t that mysterious! Do some research or read some more articles on this site to become familiar with the lending terms that you need to know.
There are also many mortgage companies online that can help you find direct
mortgage lenders and home loan brokers that will best suit your needs.
This is a quick way to find a good mortgage loan and compare rates and offers
from multiple lenders. When lenders compete for your business, it works to
your advantage. To view our list of these recommended online mortgage
companies, visit this page: Recommended Online
Home Mortgage Lenders.
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.
Financing Home Mortgage Rate Calculator News
Greedy banks slug you another $240 a year - Herald Sun
Greedy banks slug you another $240 a year Herald Sun < Prev of 3 Next > Go figure: Home loan calculators WESTPAC and ANZ have hit battling home owners and small business by lifting lending rates outside the official cycle. In a massive snub to their 750000 loyal customers, the two banks raised mortgage ... |
Zillow Launches Zillow Mortgage Marketplace Android App - MarketWatch (press release)
Zillow Launches Zillow Mortgage Marketplace Android App MarketWatch (press release) Also available for the iPhone®, Zillow Mortgage Marketplace is the only mobile app with personalized loan quotes, lender ratings, real-time rates and mortgage calculators all in one place. "Since we brought Zillow Mortgage Marketplace to mobile in June ... Zillow Mortgage Calculator for Android Now Available |
Zillow wants to help you find the best rate with its Mortgage Calculator and ... - Droid Matters
 Droid Matters | Zillow wants to help you find the best rate with its Mortgage Calculator and ... Droid Matters With Zillow's Mortgage Calculator and Rates app, you will be able to calculate how much home you can afford, what your mortgage payment will be, and whether it makes sense to refinance. In addition, you will be able to receive personalized loan quotes ... |
HARP Refi May Delay PMI Cancellation - NASDAQ
HARP Refi May Delay PMI Cancellation NASDAQ The federal HARP mortgage refinance program can be a huge boon for underwater homeowners. But if you have PMI, there's a little hitch you should know about. While refinancing a mortgage through HARP can cut your interest rate and save you money, ... |
Mortgage Rates: Lender's Mortgage Rates Mixed, 30 Year Mortgage Rates at 4.01% - MonitorBankRates.com
 MonitorBankRates.com | Mortgage Rates: Lender's Mortgage Rates Mixed, 30 Year Mortgage Rates at 4.01% MonitorBankRates.com Mortgage rates on 30 year home loans are averaging 4.01%, an increase from yesterday's average mortgage rate of 3.92%. Mortgage rates currently on 15 year home mortgage loans are averaging 3.27%, up from yesterday's average 15 year mortgage rate of ... Will mortage rates stay low in 2012? Buy now to get an unheard-of rate for a 10-year mortgage |
Mortgage Rates: Friday, January 20, 2012: 30 Year Mortgage Rates at 4.04% - MonitorBankRates.com
 MonitorBankRates.com | Mortgage Rates: Friday, January 20, 2012: 30 Year Mortgage Rates at 4.04% MonitorBankRates.com Mortgage rates on 30 year mortgage loans are averaging 4.04%, an increase from yesterday's average mortgage rate of 4.02%. Current mortgage rates current on 15 year home loans are averaging 3.33%, up from yesterday's average 15 year mortgage rate of ... |
'Rent or Buy' site crunches numbers - Surrey Now
'Rent or Buy' site crunches numbers Surrey Now But there's a lot more to buying and owning a home than just paying the mortgage. There are real estate and legal fees, home inspection and moving costs, property taxes, utilities and interest rates. One of the best ways to determine if you can ... |