What Happens If Interest Rates Decrease And I Have A Fixed Rate Loan?
Like the video shows, if interest rates drop significantly you may want to investigate refinancing. According to the US Dept of Housing & Urban Development most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one refinancing is smart.
What Types Of Mortgage Loans Are Available?
This video tells you about the most common types: Fixed Rate, ARM, Balloon and 2-Step. First, Fixed Rate Mortgages: Payments remain the same for the life of the loan generally 15 years or 30 years. Interest rates remain the same, so payments are predictable. A second common type is an Adjustable Rate Mortgage, or ARM.
What Are The Advantages Of 15- And 30-Year Fixed-Rate Mortgages?
For both, as we show you in this video, compared with other options, ‘with fixed rates, housing costs won’t be affected by interest rate changes and inflation.
What Is A Mortgage?
If you’re a first-time homebuyer in Florida, you’ve probably asked yourself: What is a mortgage? A mortgage is more than just a loan—it’s your key to
When Do Adjustable Rate Mortgages Make Sense?
An adjustable rate mortgage (ARM) can be a smart option for many Florida homebuyers, but it isn’t for everyone. ARMs typically start with a lower interest rate than fixed-rate mortgages, which means smaller monthly payments in the beginning. For some borrowers, this flexibility can make homeownership more affordable.
What Is Included In A Monthly Mortgage Payment?
The monthly mortgage payment mainly pays off principal and interest. But most lenders also include local real estate taxes homeowner’s insurance, and mortgage insurance, if applicable.
What Factors Affect Mortgage Payments?
Well, as this story shows, the amount of the down payment the size of the mortgage loan, the interest rate the length of the repayment term and payment schedule will all affect the size of your mortgage payment. In bullets:
How Large A Down Payment Do I Need?
There are mortgage options now available that only require a down payment of 5% or less of the purchase price. You’ll see some pictures in this video to help you remember later – the larger the down payment,
What Is Loan To Value (LTV) And How Does It Affect The Size Of My Loan?
While this video simplifies things to help you remember, the loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing.
Are There Special Mortgages For First-Time Homebuyers?
Yes. Like the video shows, lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past.