News & Information | News and Information.
The housing market is always in a constant state of change. Interest rates are always changing and so are the loan programs and guidelines. Stay up to date on all the latest news and information as it happens with our mortgage news and information section.
Types of Mortgage Loans.
Fixed Rate.
One of the most common types of home loans available is the fixed rate mortgage. It is called a Fixed rate because the interest rate on the loan does not change. This can be of great benefit to the borrower as interest rates are tremendously low even with the weakened housing market. In fact, the current low interest rates were implemented to help boost the housing market. Why not take advantage? A borrower could take advantage of a Fixed rate mortgage at a very low rate and lock in that saving of interest that will help them several years down the line.
Fixed rate mortgages are available in a number of different terms. A typical fixed rate term is the 30 year fixed, although they are also available in 20 year, 15 year and as little as 10 years. A 30 year fixed rate and 15 year fixed are the most common.
It should be noted that fixed rate loans are highly front end loaded. During the first 2/3 of your mortgage length, your monthly payments will be going towards the interest. This is normal with most loans. You really start to chip away at the principle towards the last 1/3 of your loan life. This is why it is a good idea to pay extra on your mortgage to knock down the principle faster when you have the chance.
Fixed rate mortgages are a good bet if you think you will be in the house for a while. Fixed rate mortgage loans are also good if can lock in a lower interest rate and are expecting rates to go higher. For more detailed information on fixed rate loans as well as other loan types, fill out the form below to get more information from a mortgage professional in your area.
Adjustable Rate Mortgages USE BELOW
Unlike a Fixed rate mortgage where your mortgage interest rate is fixed over the life of the loan, an adjustable rate mortgage loan changes. ARM |
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