home mortgage financing

Exclusive summary about Home Mortgage Financing by Liz Lunn

When it comes to home mortgage financing, there are plenty of options.

1. Conventional fixed rate 30 year mortgage: This is likely the mortgage your parents had. The interest is fixed at the rate you agree to at the time the mortgage is given.

2. Conventional fixed 15 year mortgage: This loan works the same way as the 30 year fixed rate mortgage, only you repay the entire loan over 15 years. A $200,000 mortgage for 30 years at 5.75% has a monthly payment of $1167.15. You will pay $220,172 in interest over the life of the loan. A $200,000 mortgage for 15 years at 5.5% has a monthly payment of $1634.17. If you cannot afford the 15 year mortgage payments, then make sure to negotiate that there be no pre-payment penalty in your mortgage agreement.

3. Adjustable rate mortgages (ARM): This mortgage is for a set term, such as 15 or 30 years, and it always looks attractive because it has a very low interest rate.

4. Interest only mortgages: Simply put, these are never a good idea, no matter how attractive the loan appears to be. With this mortgage financing option you make payments only on the interest of the loan. While this means a $500,000 mortgage can have payments as low as $500 a month, you will still owe the $500,000 at the end of the loan.

Home Mortgage Financing - Get the Facts Before you Finance Your Home

Exclusive summary about Home Mortgage Financing by Josh Spaulding

A mortgage loan is essentially a lien on a property that has to be paid over a specified period of time. The creditor that provides your mortgage loan financing has got the legal right to recover the debt secured by the mortgage. At the most fundamental level, there are two different types of mortgage loan financing - fixed rate mortgage loans and adjustable rate mortgages.

Many mortgages provide you with the option to pay more than the minimum monthly payment or even pay off the loan in its entirety. Whatever you choose for your mortgage loan financing, just make sure to do your due diligence prior to applying for a loan. Over time, the interest rate on your mortgage loan represents a significant amount of money so it is very much in your best interest to secure mortgage loan financing that offers you the best advantage.