The latest news about home mortgages
Buying your first home is a big step in your life, and it can be scary. Make sure you're getting the best value for your money by learning about the different types of home mortgages available today and looking at the rates offered by competing mortgage lenders.
A mortgage has three parts: the amount of money you borrow, the interest rate you pay, and the length of the loan.
How much you borrow depends on how much the house costs and how much you put down. If you put $60,000 down on a $300,000 home, you'll need a $240,000 loan to cover the rest.
When looking at mortgages and other home loans, one of the most important things to think about is the interest rate. There are two main types of mortgages: ones with fixed rates and ones with rates that change over time (ARMs). Fixed-rate mortgages have an interest rate that doesn't change over the life of the loan. This means that your monthly payment stays the same. The interest rates on an ARM tend to change based on how the credit market works as a whole. This can help you if rates go down, but if rates go up in the market, your loan rates are likely to go up at the same rate. But most ARMs have a limit on how high the interest rate can go, which varies from lender to lender.
The length of the loan is much more flexible for buyers these days. Most mortgages are for 15 to 30 years, but some lenders now offer mortgages for 40 and 50 years. These longer-term mortgages are great for people who want lower monthly payments and don't mind paying off their loan after they retire. Obviously, the longer the term of your mortgage, the more interest you'll pay in the long run.
Helpful information about home equity loans
If you own your own home and need extra money, a home equity loan may be the easiest way to get it. By using your home as collateral, you can borrow money for home improvement projects, personal expenses, auto payments, college tuition, and more. No matter what your financial needs are, if you own your own home, you might be able to get a home equity loan or line of credit.
How much money you can borrow depends on how much equity you have in your home. And this number may be a lot bigger than you thought. To find out how much equity you have in your home, just take the appraised value of your home and subtract the amount you still owe on your mortgage. If you own more than one home, your home equity is the total value of all the homes you own.
Obviously, you need to talk to the lender about the specifics of a home equity loan. There are fees that go along with every loan. These vary by lender and need to be taken into account when making your decision. They might include an appraisal fee (to figure out how much your home is worth), an application fee that isn't refundable, closing costs, taxes, and up-front fees.
You should also think about the payment plan and what happens to the loan if you sell your home before the end of the loan term. When you sell your house, you may have to pay off the loan in full. The length of time a loan is good for can be anywhere from 5 to 30 years.
