This is a great time to apply for a mortgage loan. Interest rates are still low. Many borrowers are able to qualify for rates under 4%. And even better? Mortgage lenders today offer a wide variety of loan types. Borrowers with solid credit scores should have little trouble finding a home loan that works for their varied financial situations.
Here’s a look at some of the choices on the most popular mortgage smorgasbord available today. If you need help choosing, give us a call. We’d be happy to discuss your options.
30-Year Fixed-Rate: The 30-year fixed-rate mortgage (FRM) loan remains a favorite among borrowers. And why not? This mortgage comes with lower monthly payments because of its long life. Plus, the interest rate is fixed, so borrowers always know how much they’ll pay in principal and interest each month. (Your payments can still change, though, if taxes or insurance bills increase or decrease.) The downside? Because repayment is spread out over three decades, borrowers who pay off a 30-year loan in full will pay a lot more interest than those with different loan types.
15-Year Fixed-Rate: The 15-year fixed-rate loan comes with all the benefits of the 30-year version. But borrowers will pay far less interest each month because the repayment period is cut in half. The interest rates attached to 15-year mortgages are also lower than those that come with 30-year loans. However, because of the shorter term, a 15-year mortgage does come with higher monthly payments.
Hybrid ARMs: An adjustable-rate mortgage (ARM) features interest rates that are fixed for a certain number of years, often five, seven or 10. After that fixed period ends, though, the interest rate adjusts on a pre-set schedule according to the performance of whatever financial index the loan is tied to. Hybrid ARMs come in several varieties, but they all operate similarly: The 5/1 ARM, for instance, features a fixed-rate period of five years, while a 7/1 hybrid has a seven-year fixed period before the interest rate begins adjusting each year. The main benefit of these loans is the low initial interest rates that come with them. ARMs usually start with interest rates that are lower than those attached to fixed-rate loans. It’s important, though, for consumers to understand just how high their rate can jump each year once their loans enter the adjustable period and how that affects their payment—and ability to pay.
5/5 ARM: The 5/5 ARM is a relative newcomer. In this type of ARM, the interest rate is fixed for five years, then can adjust once every five years until the loan is paid off, the owner refinances it or the owner sells their home. This loan combines the low interest rate of an ARM with a bit of the stability that comes with a fixed-rate loan. Another variation is a 15/15 ARM.
In a nut shell a SHORT SALE is where a homeowner finds him/her self “upside down” on the home mortgage. What is “upside down”? It’s when the homeowner owes more on the home mortgage and equity line than the home is worth in today’s market. More and more homeowners are not only finding themselves upside down, they are finding themselves without jobs to pay the mortgage or with a job where income has been cut and they can not make the house payment.
This is when the homeowner needs to call a CDPE. A CDPE is trained and experienced REALTOR that is ready to help the homeowner sell their home and negotiate with the bank to accept less than owed on the mortgage so the seller can pass a clear title free of any mortgage leins on to the new buyer. It is not a quick nor an easy process but with Teamwork it can be the answer to saving your credit from foreclosure and moving on with life. For more information contact me and I will be happy to consult with you.
“Bad news goes about in clogs, good news in stockinged feet.” Welsh Proverb. And there was certainly both good and bad news in last week’s Jobs Report. The Labor Department reported that just 36,000 jobs were created in January, with only 50,000 jobs created in the Private sector, much lower than the numbers anticipated. However, there were upward revisions to both November and December, which added another 40,000 jobs than previously reported.
The Unemployment Rate fell to 9%, down from 9.4% last month, rather than increasing as had been expected. In addition, the U6 or “real” rate of unemployment, which includes discouraged workers and those who have accepted part-time employment for economic reasons, fell to 16.1%, from the previous month of 16.7%…and reflects the lowest level since April 2009!
If you have been thinking about purchasing a home, this is a great time to get started! Home loan rates are still very attractive, so call or email me if you want to talk about your situation.
“Wealth, like a tree, grows from a tiny seed.The first copper you save
is the seed from which your tree of wealth shall grow. The sooner you
plant that seed the sooner shall the tree grow. And the more
faithfully you nourish and water that tree with consistent savings,
the sooner you may bask in contentment beneath its shade.” George S.
Clayson, in “The Richest Man in Babylon”
I feel sometimes ‘the Universe is conspiring with me’. So I figure that the more that I practice good deeds for myself and others the better off I’ll be. The better I will have strength to get through the challenges of the day!
If you are going to face mortgage distress, possibly foreclosure – I have been trained and certified to handle short sale’s. Several Years Short Sale Experience, A great short sale team. Belong to The Best Short Sale Networks. Read More here
Don’t know about you but I have about had it with the banks charging monthly fees again. Guess it is about time to be proactive in managing my bank accounts to avoid those new fees coming in February.
Marine City, MI Beautiful 2nd or 3rd floor unit. Spectacular view overlooking St. Clair River. Stairway has a chair lift.Everyone is over 55. watch the freighters, pride of ownership. 1100′ rec room for common use and family get togethers. Near by beaches have life guards. swim ladder at seawall. Starting @ $94,900