Home Loans -- The Hot New Product? The 30-year Mortgage
In recent years, the mortgage industry has introduced dozens of new types of loans. The needs of every borrower are different, so the mortgage companies have tried to come up with an answer for every problem. They've introduced 40-year mortgages, promoted 15-year mortgages, and introduced the wildest array of variable-rate mortgages imaginable. There are mortgages that have interest rates that adjust every few months, every few years, or just once. A recently popular product that thrives on the East and West coasts is the interest-only mortgage, which reduces payments by not requiring payment on the loan's principal for the first few years of the loan.
The prospective homebuyer could have as many as one hundred possible types of loans to choose from when searching for a mortgage. Amidst this huge array of loan types, one type is growing in popularity faster than all the rest, and it may surprise you. The fastest-growing type of mortgage in America right now is the traditional 30-year, fixed-rate loan. Last year, only about 35% of all borrowers took out a 30 year, fixed-rate loan, but so far this year, the rate has increased to nearly 50%.This may seem odd, as most everyone has been opting for adjustable-rate mortgages for the last few years. Adjustable rate mortgages tend to offer lower interest rates, and lower interest rates mean lower payments.
These loans have been popular with buyers who move often, have lower incomes or buyers who simply want to invest their money elsewhere. So why is the 30-year fixed-rate mortgage back in style? Because interest rates have dropped to their lowest point in fourteen months, and they are nearly as low as they were in the summer of 2003, when they reached the lowest point on record. In short, the 30-year fixed-rate mortgage is not only seen as competitive with other types of loans, but it is actually seen as safer. Borrowers who have adjustable-rate mortgages enjoy their biggest advantage when rates are high, knowing that their interest rate is lower than a fixed-rate mortgage. But when interest rates for the market as a whole reach historic lows, the borrower with an adjustable-rate mortgage knows that their rate can only go up.
At times like the present, when rates are only likely to go up, converting an adjustable rate loan to a fixed-rate loan is a smart move. First-time buyers can safely take on a 30-year fixed-rate loan and be comfortable in the fact that their rate will stay fairly low for the duration of their loan. Sometimes, the way things have always been done turns out to be the best. While there are still some buyers who will benefit from adjustable-rate loans, most borrowers would do well to lock in their loan at a fixed rate now. Historically, fixed-rate mortgages have rarely been under six percent, so obtaining such a loan while they are available is one of the smartest moves a homeowner can make..
?Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.A Guide To Commercial Mortgage Lending
A commercial mortgage is a loan that uses commercial property as a guarantee. Commercial mortgages are often used to buy business property, such as offices, shops, restaurants, or pubs. However, they can also be used to buy other business assets, such as plants or machinery.
Commercial mortgaging is probably the best way to finance the purchase of buildings and land for business, because it provides a flexible and affordable solution that gives you access to capital. Commercial mortgages are specialized due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.
In addition, commercial mortgages can also be an excellent way of financially supporting the expansion of an existing business.
A commercial mortgage will give you access to capital that you would not normally have, with minimal up-front payments and the flexibility to design a repayment plan that suits your organization's needs. The character...
Mortgages > A Guide To Commercial Mortgage Lending
Types of Mortgages
Here is a useful guide to the different types of mortgages that are available. A mortgage is a loan you take out to buy property. You can get a mortgage direct from the lender such as banks, building societies and specialist mortgage lenders. Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage that suits you. This will depend on your personal circumstances and your plans for the future.
Many mortgages have hidden drawbacks. Get independent advice before you choose a mortgage. There are two basic types of mortgage, interest-only and repayment. The option you choose is determined by the way you want to repay your loan. There is no hard and fast rule about which is better.
It is a matter of individual preference. Interest only An interest-only mortgage allows you to repay just the interest on your loan, but you have to take out an investment that will mature to pay off the outstanding amount. If your investment performs well...
Types of Mortgages
Mortgages > Types of Mortgages
Are you ready for a 40-year mortgage?
Real estate prices have been increasing steadily over the last five years, particularly on the East and West coasts. In parts of California, homes are selling for 33% more than they were a year ago. This has made it more difficult than ever for first-time homebuyers to purchase a home. Over the years, a number of new mortgage options have become available to prospective buyers that ease the burden of buying a home. Buyers can now obtain a mortgage with a variable interest rate that rises or falls with the market or even a mortgage that requires only interest payments for the first few years of the loan term.
This allows buyers to make smaller payments early in the repayment schedule while purchasing a more expensive home than they otherwise might be able to afford. The payments would increase in later years, but so, presumably, would the income of the buyers, so that the home would still be within the buyers' range of affordability. A relatively new mortgage option that may soon...
Are you ready for a 40-year mortgage?
Mortgages > Are you ready for a 40-year mortgage?
How Can I Tell The Differences Between All Of The Home Loans On Offer?
There are literally hundreds of home loans available but lets just look at the three main categories.
- There are the Purchase Home Loans, where you are looking at buying a new home.
- You have the Refinance Home Loans where you could already be in a home but want to find a better deal.
- And you have the Home Equity Home Loans, where you want to tap into the equity you have sitting in your home that you can use for something else.
Mortgages > How Can I Tell The Differences Between All Of The Home Loans On Offer?
Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
(ContentDesk) May 20, 2004 -- We property investors are very good at gearing ourselves up to the hilt. We maximise the available mortgage so that we don't have to use too much of our own money and we get tax relief on all the interest.But is that always the best way?I suggest not. Later in life we will probably be looking for our properties to provide our retirement income. We can do this in two ways. Either by periodically selling off properties and living off the proceeds, or by using the net rent to pay our living costs.Ultimately it is down to cashflow, and if you choose the second option, your cashflow is better if you pay off the mortgage than it is if you keep the mortgage.
Let me demonstrate with an example. I have left out management and maintenance costs to keep it simple, but they would be the same in either scenario.Lets say you have six properties rented out at ?500 per month, and they are all mortgaged with the mortgage costs at ?300 per month, which isn't unrealistic...
Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
Mortgages > Don't Let The Tax Tail Wag The Commercial Dog! - Should you be fully geared with investment property?
Buying a Home? Website helps Homebuyers Save Thousands by Researching Available Home Buying Grants before Making an Offer to Buy a Home
(ContentDesk) May 21, 2004 -- Buying a home is probably the single most important financial transaction one makes. As home prices continue to climb, it becomes more important for perspective home buyers to research available mortgage programs that best fit their particular need before making an offer to buy a home. Now researching mortgages and learning about the home buying process has been consolidated into a single resource. Home buyers can simplify the home buying process by taking a few recommended steps. First, get familiar with the home buying process.
This will help you understand what to expect and help you deal with any issues before you are emotionally involved in buying a home. Buying-a-Home-Info.com provides an easy to read step by step outline of what to expect when buying a home.Secondly, after getting familiar with the home buying process, begin researching available home buying grants and mortgages by visiting:
Buying a Home? Website helps Homebuyers Save Thousands by Researching Available Home Buying Grants before Making an Offer to Buy a Home
Mortgages > Buying a Home? Website helps Homebuyers Save Thousands by Researching Available Home Buying Grants before Making an Offer to Buy a Home
Online Mortgage
The main advantage of applying for online mortgages is their
convenience. It is relatively easier to apply for an online mortgage than it is
for an offline mortgage. The Internet is a wonderful tool and one which you can
take full advantage of when looking for the best deals in online mortgages.
Many online mortgage lenders offer competitive packages for home buyers and
most of these offer free online mortgage quotes for your perusal. As a perk,
some of these sites also offer free online mortgage calculators to help you
calculate the costs and gains of the loan programs they have to offer.
The Benefits of Online Mortgages
Borrowers can stay involved with their mortgage dealings by applying for
a mortgage online.
With traditional mortgages, lenders may not give out enough
information, leaving the borrower practically in the dark throughout the whole
process. Online mortgages...
Mortgages > Online Mortgage
Home Equity Mortgages
Home equity mortgages are loans that use the equity on the home as collateral. Home equity is the difference between the current value of the home and the amount owed because of the mortgage/mortgages. A home equity mortgage can also be said to be a second mortgage since the extra cash generated can be used for home improvements, thus increasing the value of the house further.
Like regular home mortgages, home equity mortgages also use the property/ home as the security.
In case of default, the lender has the right to take over the home.
There are many advantages of taking a home equity loan: it would reduce the current loan burden if taken at a lower rate; the funds generated can be used to pay off high interest debts like credit cards; sometimes, home equity mortgages enable some tax savings; they can be used to exchange the present mortgage for a shorter term mortgage. Other advantages include: lower closing costs, and faster closing.
Home...
Mortgages > Home Equity Mortgages
Mortgages
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