How do you get a mortgage
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Written by Peter
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Wednesday, 20 February 2008 |
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To prequalify for a mortgage and to receive loan rate offers, simply answer a few short questions on our Loan Application and one of our loan officers will contact you directly.
Mortage come in a variety of flavors. Term loans can be anywhere from 10-30 years, though the most common is either 15 or 30 year loan. The most typical loan types are fixed rate, adjustable rate (ARM) or convertible. - A fixed rate mortgage is a loan with an interest rate that remains the same for entire term of the loan. Fixed rate loans are recommended if you are planning to keep your home for many years and you expect overall interest rates to increase or remain stable.
- An adjustable rate mortgage (ARM) is a loan with an interest rate that adjust periodically to reflect changes in a specific financial index. These loans generally have the lowest initial rate and payment. They are recommended if you plan to keep the loan for a short time (less than three years), expect your income to increase substantially, or expect rates to decrease. You may qualify for a larger loan amount with an ARM than you would with a fixed rate mortgage.
- A convertible rate mortgage is a combination of a fixed rate and an adjustable loan. It usually has a fixed rate for the first few years and then convert to an adjustable rate for the remainder of the loan term. The starting rate is usually higher than an adjustable rate loan but lower than a fixed rate loan.
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Last Updated ( Sunday, 27 July 2008 )
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